India's Tryst With Modifying Awards – Pragmatic Recognition Or Catastrophe?

This article has been published in Global Arbitration Review – The Asia-Pacific Arbitration Review 2026 at India's tryst with modifying awards – pragmatic recognition or a catastrophe – Global Arbitration Review.

In summary

The Supreme Court of India has addressed a pivotal issue in arbitration law. In Gayatri Balasamy v ISG Novasoft Technologies Ltd., a five Judges Constitution Bench, by a 4:1 majority, held that courts possess a limited power to modify arbitral awards under sections 34 and 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). This article examines the Arbitration Act, which restricts recourse to setting aside awards, compares this with foreign jurisdictions where statutes permit variation. Indian law provides no such power. Judicial legislation may create more problems than it would solve. Hence, the decision to grant such a power should be legislative and not through ad-hoc judgments.