Tech knocks at legal door
August 14, 2025
Debt Recovery Tribunal (DRT)
November 8, 2025Recently the Hon’ble supreme Court in the case of GAYATRI BALASWAMY v. M/S ISG NOVASOFT TECHNOLOGIES LTD 2025, dealt with a question that challenged the scope of Article 142 of the Constitution of India.
The question was whether the Indian courts can modify arbitral award or set them aside using Article 142?
The Hon’ble Supreme Court by a majority of 4:1 held that the courts do possess power under sections 34 and 37 of the Arbitration and Conciliation Act 1996 and thereby modify arbitral awards including post arbitral award interests.
The interesting part is the reason for giving such decision. Section 34 (2)(a)(iv) of the mentioned Act provides the Doctrine Of Severability, thus courts have the power to invalidate the portion of arbitral award it finds to be against the provisions of the Constitution. Moreover section 34 of the said Act and the Article 142 of the Constitution Of India follows the legal maxim omne majus continent in se minus that says that greater power includes the lesser power. Thus if courts can have power to set aside any decree it also have power to set aside an award which though is not a deemed decree but is enforced as the same under section 36 of the Arbitration and Conciliation Act 1996.
-Advocate Rama Ragini

