SC to determine judicial power to modify arbitral awards

The Supreme Court has called upon a Constitution bench to end the realm of uncertainty over the extent of the court's power in interfering with arbitral awards under the Arbitration and Conciliation Act, 1996.

A three-judge bench in the top court has referred to a larger bench the issue as to whether courts can modify arbitral awards while dealing with petitions under Sections 34 and 37 of the Act. The two provisions in the 1996 Act deal with the court's authority in setting aside the arbitral awards and appeals against such orders respectively.

The bench, comprising justices Dipankar Datta, KV Viswanathan and Sandeep Mehta, emphasised that clarity in law is required for exercise of jurisdiction under Sections 34 or 37 of the Act through an authoritative pronouncement.