The Supreme Court criticised the 2024 Arbitration Bill for ignoring the tribunal’s power to include non-signatories in arbitration. It stated, “Arbitral Tribunal can make non-signatories parties,” urging the Centre to amend the law.
Justice KV Viswanathan of the Supreme Court dissented, stating that courts lack the authority to modify arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act. He emphasized that Article 142 cannot supplant substantive law, opposing the majority view that allowed for limited modifications, warning of potential complications in international enforcement.
The Supreme Court will form a Constitution Bench to examine the authority of courts to modify arbitral awards. A bench led by Chief Justice of India Sanjiv Khanna, along with Justices Sanjay Kumar and KV Viswanathan, referred the matter to a five-judge bench on Thursday. The decision highlights the importance of clarifying judicial powers in arbitration cases.