Judicial intervention under section 34 of the arbitration act inherently includes a limited power to modify an arbitral award without undertaking a merit based re-evaluation of facts
The Court exercising jurisdiction under Section 34 of the Arbitration and Conciliation Act, 1996 possesses the limited and nuanced power to modify or sever an arbitral award rather than being restricted solely to setting it aside in total. Restricting courts from modifying awards would force commercial parties into repetitive, costly, and time-consuming rounds of fresh arbitration, thereby defeating the primary objective of alternative dispute resolution. However, this power of modification remains strictly constrained within the statutory guardrails of Section 34, allowing courts to adjust or sever separable portions of an award to apply agreed contractual terms without assuming full appellate powers or re-examining evidence on merits. (M/s Saisudhir Energy Ltd. v. M/s NTPC Vidyut Vyapar Nigam Ltd. | 2026 INSC 103)