Courts Can Modify Arbitral Awards: SC

The apex court clarified that courts can do so in rare instances, such as correcting calculation errors, adjusting interest

- Krishna Yadav & Manas Pimpalkhare

Courts can modify arbitral awards under limited and rare circumstances, a constitution bench of the Supreme Court ruled on Wednesday, a majority verdict that could alter India's arbitration landscape.

So far, Indian courts could only uphold or set them aside.

The five-judge bench, led by chief justice of India Sanjiv Khanna, ruled that courts can modify arbitral awards in accordance with Sections 34 and 37 of the Arbitration and Conciliation Act, 1996. Section 34 allows parties to apply for setting aside an arbitral award, while section 37 deals with appeals against such orders.

The other four members of the bench hearing Gayatri Balasamy v. ISG Novasoft Technologies Ltd were Justices B.R. Gavai, Sanjay Kumar, K.V. Viswanathan, and Augustine George Masih.