SC Holds That Arbitral Award Cannot Be Modified But Only Set Aside Partially or Wholly

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Oct 19, 2023

SC Holds That Arbitral Award Cannot Be Modified But Only Set Aside Partially or Wholly

The Supreme Court (‘SC’) in Larsen Air Conditioning & Refrigration Company v. Union of India,^[1] held that under the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’), the Courts do not have the power to modify an arbitral award. The SC observed that, while such a power existed under Section 15 of the erstwhile Arbitration Act, 1940, the same was consciously omitted by the Parliament while enacting the Arbitration Act. Under the Arbitration Act, the Courts only have the power to set aside an arbitral award partially, or wholly, once the conditions stipulated under Section 34 of the Arbitration Act have been established.

[1] Larsen Air Conditioning & Refrigration Company v. Union of India, 2023 SCC OnLine SC 982.

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