Supreme Court Empowers Courts to Modify Arbitral Awards

The Supreme Court, in a 4:1 verdict, has clarified that courts can modify arbitral awards under the Arbitration and Conciliation Act, 1996, though with caution. A Constitution bench led by Chief Justice Sanjiv Khanna affirmed this, while Justice K V Viswanathan dissented, arguing against any alteration of awards.

In a landmark judgement, the Supreme Court ruled by a 4:1 majority that courts have the authority to modify arbitral awards under the 1996 Arbitration and Conciliation Act.

The decision, delivered by a Constitution bench led by Chief Justice Sanjiv Khanna, clarified that such modifications should be approached with caution, adhering to Sections 34 and 37 of the act.

Justice K V Viswanathan dissented, maintaining that courts should refrain from altering arbitral awards. The judgement came after a lengthy deliberation, concluding debates reserved since February 19.

(With inputs from agencies.)