Power To Modify Arbitral Awards – Need For Straddling The Fence

The much-awaited judgment, reserved in the matter of Gayatri Balasamy vs M/S ISG Novasoft Technologies Limited ( "Gayatri Balasamy") by the 5-Judge Constitution Bench of the Hon'ble Supreme Court on February 19, 2025, is heralded as the torch-bearer for contouring and setting straight the path to be followed by courts under Section 34 or Section 37 of the Arbitration and Conciliation Act, 1996 (for short "the 1996 Act") – whether to modify an award or separate portions thereof as recourse when an award is challenged.

Background

Although the 1996 Act imposes greater restrictions on judicial interference in the arbitral process as opposed to its precursor - the Arbitration and Conciliation Act, 1940 (for short "the 1940 Act") - modification of arbitral awards is rather a commonplace trend. What is rather bemusing or in the dark is the extent or power that is contemplated under or sanctioned by the 1996 Act – whether the 1996 Act, which treads on borders of