Supreme Court to Rule on Courts' Power to Modify Arbitral Awards

The Supreme Court is set to deliver its verdict on whether courts have the power to modify arbitral awards under the 1996 arbitration law. The decision could impact both domestic and international arbitration practices. Key arguments include the judiciary's power to set aside awards and legislative intent regarding modification powers.

The Supreme Court is poised to announce a key decision on Wednesday regarding the judiciary's authority to modify arbitral awards under the Arbitration and Conciliation Act of 1996.

In February, Chief Justice Sanjiv Khanna led a five-judge Constitution bench to deliberate on the matter. The court's determination follows arguments from prominent legal figures, including Solicitor General Tushar Mehta and senior advocates such as Arvind Datar.

The upcoming verdict could influence arbitration practices by clarifying whether courts hold discretion to alter awards, a point contested due to legislative choices made within the 1996 Act, which is designed to limit judicial intervention.

(With inputs from agencies.)