#Arbitration & Conciliation Act, 1996

The Delhi High Court held that the three-month limitation for filing a Section 34 petition only begins when a Section 33 application is finally disposed, even if the application is a sham. Consequently, parties can file Section 34 petitions later than previously thought, and courts may award punitive costs against frivolous Section 33 filings.

The Supreme Court has set aside the Commercial Court’s dismissal and referred the challenge to a larger bench, ordering a constitutional review of the 10 % pre-deposit security clause in arbitration agreements. The referral signals that such clauses may breach Article 14’s equality guarantee and conflict with Section 18 of the Arbitration Act, impacting contractors and public-sector projects.