In Brief
The Supreme Court held that Section 34(5) of the Arbitration and Conciliation Act, 1996—requiring prior notice to the opposite party and an affidavit before filing an application to set aside an arbitral award—is directory, not mandatory. Although worded imperatively, the provision carries no prescribed legal consequence for non-compliance. The Court reasoned that procedural provisions designed to expedite proceedings (not create condition precedents) should be construed as directory. Unlike Section 80 CPC, which serves a vital public policy purpose, Section 34(5) merely aims to reduce delay. Courts should endeavour to dispose of such applications within one year of notice, but failure to issue prior notice does not render the application invalid or unmaintainable. The appeal was allowed and the High Court judgment set aside.
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