Court’s power to modify an arbitral award | Arguments Matrix

On 19 February 2025, a five-judge Constitution Bench led by Chief Justice Sanjiv Khanna reserved judgement in a case to decide whether courts can modify an arbitral award. The legal question hinges on the interpretation of Section 34 of the Arbitration Act, 1996. The provision allows courts to “set aside” an award. The bench will determine if “setting aside” includes “modification.” 

Arguments in the case spanned three days. (Read our hearing reports here, here and here). The petitioners and the Union of India argued that the Act expressly omitted the courts’ power of modification from the 1996 Act. Respondents, on the other hand, contended that the power to set aside necessarily subsumed the power to modify. They submitted that if Parliament had intended to deny the court the power of modification, it would have created an express provision to that effect. 

This argument matrix breaks down key contentions in the hearings.