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The Supreme Court ruled that courts can modify arbitral awards in limited cases.
This power comes under Section 34 of the Arbitration and Conciliation Act, 1996.
Changes are allowed only for removing invalid parts, fixing obvious errors, or adjusting post-award interest.
Courts cannot review the facts, costs, or merits of the award.
The Supreme Court can use Article 142 to ensure complete justice, but only within constitutional limits.
Justice K.V. Viswanathan disagreed, saying courts can’t modify awards unless the law clearly allows it.
His view matched the Centre’s position that modification needs specific legal permission.
Some lawyers warned that court-modified awards could cause issues internationally under foreign enforcement treaties.
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