I-pay Clearing Services Private Limited Vs ICICI Bank Limited

Abstract

The Arbitration and Conciliation Act, 1996 was introduced in response to the UNCITRAL Model Law on International Commercial Arbitration, to consolidate and amend the law relating to domestic and international commercial arbitration in India (UNCITRAL Model Law). The Section 34 of the Arbitration and Conciliation Act’1996 entails that the aggrieved party can file application for setting aside the arbitral award. The provision under Section 34(4) of the Act intends to uphold the sanctity of an award which lacks in ‘finding and reasons’. The Supreme Court has used discretionary powerunder Section 34(4) of the Act in this case. The object of the Section 34(4) of the Act is for remission of award only in those situations where the defect in award is curable and setting aside of award can be prevented. However, it would be contrary to the object of the said provision if the Arbitral Tribunal changes the award in the process of remission on an application under Section 34(4) of the Act,where there is distorted attempts to alter the award.