In SC, govt flags legislative gap in arbitration law

SC SAID THE ISSUE REQUIRES 'URGENT DETERMINATION' GIVEN THE LARGE NUMBER OF CASES AWAITING A FINAL WORD FROM THE APEX COURT

- Utkarsh Anand

NEW DELHI: The Union government on Thursday acknowledged a "legislative gap" in India's arbitration framework, which prevents courts from modifying arbitral awards even when they can set them aside. However, it urged a constitution bench of the Supreme Court to refrain from reading such a power into the law, emphasizing that the issue should be left to the "wisdom of the legislature".

Appearing before a five-judge bench led by Chief Justice of India Sanjiv Khanna, solicitor general Tushar Mehta highlighted the key objectives of the Arbitration and Conciliation Act, 1996, which is based on the UNCITRAL Model Law and aims for finality, minimal judicial intervention, and cost-effective dispute resolution. The bench also includes justices Bhushan R Gavai, Sanjay Kumar, KV Viswanathan and AG Masih.