Courts cannot modify arbitral award under Section 34 of Arbitration and Conciliation Act: Supreme Court

20th July,2021

Courts cannot modify arbitral award under Section 34 of Arbitration and Conciliation Act: Supreme Court

The Supreme Court today held that courts can't alter an honor passed under Section 34 of the Arbitration and Conciliation Act, 1996 (Project Director, NHAI v. M Hakeem). At the same time, the Bench of Justices Rohinton Fali Nariman and BR Gavai excused all bids relating to the case. Solicitor General Tushar Mehta, showing up for the National Highways Authority of India (NHAI), had expressed that the extent of enquiry under Section 34 of the Arbitration and Conciliation Act, 1996 was very restricted in nature, and thus, repressed settling based on archives.

"Regardless of the positive discovering, u/s 34(2) requiring saving of the honor, the court can't direct an adjudicatory exercise to come to an alternate end result because of the actual idea of the cure of Section 34 itself," SG Mehta had contended.
An exposed scrutiny of Section 34 rules out question that there is no force vested by the rule to the administrative court to change, differ, meddle or engage any sort of challenge against an honor passed by a referee as per the 1996 Act, the Solicitor had submitted.

On January 18 this year, a Bench of Justices Nariman, KM Joseph and Ajay Rastogi had given notification in the requests testing the Madras High Court request passed by the Madras High Court Bench of Justices TS Sivagnanam and R Tharani on February 13, 2020. SG Mehta, helped by Advocates PV Yogeshwaran, Rajat Nair and Kanu Agrawal showed up for NHAI. The respondents were addressed by Senior Advocate R Balasubramanian.