- The Supreme Court observed that an Arbitrator can not modify an Arbitration award on an application documented under Section 33 of the Arbitration and Conciliation Act.
- Only in certain cases of arithmetical and additionally administrative mistakes, the award can be modified and such mistakes can be rectified, the bench consisting Justices MR Shah and BV Nagarathna stated.
- Name of the case: Gyan Prakash Arya vs Titan Industries Limited
- In this case, the arbitrator passed an award guiding the party to return to the claimant 3648.80 grams of unadulterated gold alongside interest @ 18% per annum computing the worth of gold at Rs.740 per gram from 24.07.2004 and up to the date of conveyance of the amount of gold.
- Alternatively, the appealing party was coordinated to pay the market price of 3648.80 grams of unadulterated gold alongside interest @ 18% per annum ascertaining the worth of the gold at Rs. 740 for each gram from 24.07.2004 till the date of the installment.
- From that point on, an application under Section 33 of the Act, the Arbitrator made specific rectifications in the award. Along these lines comparing changes was made in the substitute relief.
- One of the parties recorded an application to save this modified Arbitration award which was dismissed. The appeal against this order was likewise excused.
- Before the eyes of the Apex Court it was argued that there was no arithmetical and additionally administrative mistakes in the original award passed by the arbitrator.
- It was argued that the City Civil Court just as the High Court have really made a mistake in maintaining the order passed by the arbitrator permitting the application recorded under Section 33 of the 1996 Act and altering the award in indicated exercise of abilities under Section 33.
- Agreeing with this conflict, the Bench observed that the order passed by the authority in the application under Section 33 of the 1996 Act is past the degree and ambit of Section 33 of the 1996 Act.
- Whether the arbitrator is allowed to modify arbitration award on an application under sec 33?
- What is an Arbitration grant ?
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