Arbitral Awards Cannot Be Modified Under Sections 34 & 37 Of Arbitration & Conciliation Act : Supreme Court

While deciding on a plea whether there is a scope of interference with arbitral awards under Section 34 and 37 of the Arbitration and Conciliation Act, 1996, the Supreme Court has reiterated the settled position of law that any attempt to “modify an award” while adjudicating Sections 34 and 37 petitions is not permissible under the Arbitration and Conciliation Act, 1996. The Division Bench of Supreme Court comprising Justices Abhay S. Oka and Sanjay Karol while deciding a Civil Appeal filed by the Appellant against the judgment and order passed by the High Court of Karnataka under Section 37 of the Arbitration and Conciliation Act, 1996, framed a question of law that: “whether the High Court was justified in confirming the order dated 22nd April, 2010 under Section 34 of the Arbitration & Conciliation Act, 1996 passed by the Senior Civil Judge, Sirsi, in Civil Misc. Thus, it is evident that in case an arbitral award has been confirmed by the court under Section 34 and by the court in an appeal under Section 37, this Court must be extremely cautious and slow to disturb such concurrent findings.” Moreover, the court in para 38 took reference of a Judgment delivered in Larsen Air Conditioning and Refrigration Company v. Union of India and Others by holding that “the circumscribed nature of the exercise of power under Sections 34 and 37 i.e., interference with an arbitral award, is clearly demonstrated by legislative intent. The Arbitration Act of 1940 had a provision which allowed for a court to interfere in awards, however, under the current legislation, that provision has been omitted.” Thus, the court in para 39 held that “the learned Single Judge, similar to the learned Civil Judge under Section 34, appears to have not concerned themselves with the contours of Section 37 of the A&C Act.” Conclusion The Court has ultimately allowed the appeal of the claimant-appellant by setting aside the impugned judgment passed by the Ld.