A New Chapter For Section 34: Gayatri Balasamy v. ISG Novasoft Technologies Limited

Introduction

For many years Indian courts adopted a strict view of their powers when reviewing arbitral awards under the Arbitration and Conciliation Act 1996 ("A&C Act"). Conventionally, judges were able to do only two things: set the award aside or remit it to the arbitral tribunal. In the five judge decision of Gayatri Balasamy v. ISG Novasoft Technologies Limited¹ ("Balasamy"), the Supreme Court relaxed such framework. Without abandoning the principle of minimal judicial interference, the Court recognised a limited power to modify an award in clearly defined situations. The judgment therefore marks a significant, but measured, evolution in Indian arbitration law.

The Legal Landscape before Balasamy