Supreme Court Constitution Bench Clarifies: Courts Can Modify Arbitral Awards Only in Limited Cases

In a landmark 5-judge Constitution Bench, the Supreme Court held that courts can modify arbitral awards under Sections 34 and 37 of the Arbitration Act.

Modifications are allowed only in limited circumstances, where awards are severable, to correct clerical/typographical errors, or modify post-award interest, and when invoking the Court's powers under Article 142 of the Constitution. 

However, Justice KV Viswanathan dissented, asserting that courts cannot modify awards or interest and cannot invoke Article 142 for such changes, as it could undermine the arbitration process.

The verdict resolves long-standing inconsistencies in arbitration jurisprudence. (Gayatri Balasamy v ISG Novasoft Technologies Ltd)