Question

The Supreme Court in a decision, with 4:1 majority recently held that Courts have a limited power to modify an arbitral award under Section 34 of the Arbitration Act. Who among the following judges has given dissenting opinion in the decision?

• A. Justice Sanjiv Khanna
• B. Justice B. R. Gavai
• C. Justice P. V. Sanjay Kumar
• D. Justice K. V. Vishwanathan

Hint:

Recent constitutional bench judgments are very important. The case on the modification of arbitral awards is a key 2024 judgment where Justice P. V. Sanjay Kumar gave the notable dissenting opinion.

Answer 1

The Correct Option is C

This question refers to the landmark 2024 constitutional bench judgment in the case of Gayatri Balasamy v.
M/s ISG Novasoft Technologies Ltd.
The key issue was whether a court, under Section 34 of the Arbitration and Conciliation Act, 1996, can modify an arbitral award or if its power is limited to only setting the award aside.

The majority opinion (4 judges) held that the power to modify an award is very limited and should be exercised only in exceptional circumstances, with the general rule being to set aside the award.

Justice P.
V.
Sanjay Kumar gave the lone dissenting opinion.
He argued that courts should have a wider power to modify awards to ensure complete justice and to prevent multiple rounds of litigation, which would defeat the purpose of arbitration.