Supreme Court Debates Power to Modify Arbitral Awards Under 1996 Law

The Supreme Court is set to decide if courts in India can modify arbitral awards under the Arbitration and Conciliation Act of 1996. This decision could significantly impact both domestic and international arbitration practices, as currently, courts can only set aside awards on specific grounds.

The Supreme Court has reserved its judgement on whether courts can alter arbitral awards under the 1996 Arbitration and Conciliation Act. This ruling could reshape the landscape of domestic and international arbitrations, sparking significant change in how awards are handled.

A five-judge Constitution bench, led by Chief Justice Sanjiv Khanna, engaged in a comprehensive analysis of arguments from various legal experts, including Solicitor General Tushar Mehta and senior advocates like Arvind Datar. Notably, Datar highlighted that courts might have implicit powers to alter awards, while others debated the non-explicit legislative intention to exclude such authority.

The verdict will address core questions about courts' interpretative leeway within arbitration, with the potential to streamline or complicate current practices. The legal community awaits how this decision will guide future arbitration proceedings in India.