As of now, the Supreme Court has not issued a final judgment on whether courts can modify arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996. The matter was referred to a five-judge Constitution Bench, which reserved its verdict on February 19, 2025 .​

The issue centers on whether courts have the authority to modify arbitral awards or are limited to setting them aside under the current legal framework. Solicitor General Tushar Mehta argued that while it might be desirable for courts to have such powers, any change would require legislative amendment .​

Previously, in the 2021 case of NHAI v. M. Hakeem, the Supreme Court held that courts do not have the power to modify arbitral awards under Section 34, emphasizing that such authority was consciously omitted by Parliament in the 1996 Act .

The current deliberations by the Constitution Bench aim to address this contentious issue, and a definitive ruling is awaited.​

Sources