Supreme Court clarifies award modifications

Supreme Court clarifies award modifications

The Supreme Court has held that an arbitrator allowing an application to modify an original award in the exercise of powers under section 33 of the Arbitration and Conciliation Act, 1996, was not sustainable if there was no arithmetical and/or clerical error in the award.

The appellant in the case of Gyan Prakash Arya v Titan Industries Limited had entered into an agreement with the respondent on 9 July 2003. Subsequently, a dispute arose between the parties relating to the recovery of pure gold weighing 3,648.8 grams, which was said to have been in the possession of the appellant.

The respondent invoked the arbitration clause contained in the agreement and Karnataka High Court appointed a retired district judge as the sole arbitrator to adjudicate the dispute between the parties.

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The dispute digest is compiled by Numen Law Offices, a multidisciplinary law firm based in New Delhi & Mumbai. The authors can be contacted at Readers should not act on the basis of this information without seeking professional legal advice. subscripton ad red 2022