New Delhi, May 1 -- In a landmark 4:1 majority judgment, a Constitution Bench of the Supreme Court held that appellate courts have only limited powers to modify arbitral awards while exercising jurisdiction under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996.

The majority opinion, authored by Chief Justice Sanjiv Khanna, clarified that courts can only intervene in specific circumstances.

The Court emphasised that modifications are allowed when an award is severable, meaning that the invalid portion of an award can be separated from the valid part, allowing the rest of the award to stand.

This ensures that the core of the arbitral decision remains intact while addressing any issues with specific aspects of the award....