Circumstances in which decision may be invalidated

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(1) Any party dissatisfied with the decision taken by the arbitrator may, if one wishes to invalidate the decision file a petition to the Appellate Court along with the related documents and a copy of the decision within 35 days from the date the decision heard or notice received thereof under this Act. Petition shall also supply a copy of that petition to the arbitrator and the other party.
(2) In case a petition is filed pursuant Sub-section (1) the Appellate Court may, in case the petitioner proves that the arbitration decision contains any of the following matters, invalidate that decision or issue an order to have a fresh decision taken as per necessity:
(a) In case any party to the agreement was incompetent for any reason to sign the agreement at the time of signing the agreement, or in case the agreement is not valid under the law of that the nation which governs jurisdiction over the parties, or in case such law is not clear and agreement is not valid under the laws of Nepal.
(b) In case the due petition was not given a notice to appoint an arbitrator or about the arbitration proceedings in time.
(c) In case the decision has been taken on a that disputed matter which had not been referred to the arbitrator, or in a manner contrary to the conditions prescribed for the arbitrator, or by acting beyond the jurisdiction prescribed for the arbitrator.
(d) Except when an agreement has been signed contrary to the laws of Nepal, in case the procedure of designation of arbitrators or their functions and actions do not conform to the agreement signed between the parties, or in case there is no such agreement it has not been done as per this Act.
(3) Notwithstanding anything contained in Sub-section (2), the Appellate Court may invalidate the decision of the arbitrator in the following circumstances in case a petition is filed pursuant to Sub-section (1):
(a) In case the dispute settled by the arbitrator cannot be settled through arbitration under the laws of Nepal.
(b) In case the decision taken by the arbitrator is likely to be prove detrimental to the public interests or policies.

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Circumstances in which decision may be invalidated

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