Courts can modify arbitration awards under 1996 law: SC

The majority ruling by Chief Justice of India Sanjiv Khanna and Justices B R Gavai, Sanjay Kumar and AG Masih held that courts have 'limited power' under Section 34 and 37 of the Act to modify arbitral awards

- PRESS TRUST OF INDIA

In a verdict set to impact commercial disputes, the Supreme Court Wednesday held courts can modify arbitral awards under the 1996 law on arbitration and conciliation under certain circumstances.

In a 4:1 majority verdict, Chief Justice Sanjiv Khanna, writing the 61-page verdict also on behalf of Justices B R Gavai, Sanjay Kumar and Augustine George Masih, held the larger power to set aside an arbitral award under the Arbitration and Conciliation Act, 1996, would also include the authority to modify it if certain conditions were met.

Justice KV Viswanthan, however, was the lone dissenting judge on the five-judge Constitution bench.