2025 (2) TMI 177 - SCH - Indian Laws

Modification of Award - Order regarding the amount of 50, 00, 000 deposited with the Registrar High Court of Judicature at Madras - HELD THAT - This Court will first hear arguments of the counsel seeking reconsideration of the ratio expressed in PROJECT DIRECTOR NATIONAL HIGHWAYS NO. 45 E AND 220 NATIONAL HIGHWAYS AUTHORITY OF INDIA VERSUS M. HAKEEM ANR. 2021 (7) TMI 1343 - SUPREME COURT that is the Court has the power to modify an award under Sections 34 and 37 of the Arbitration and Conciliation Act 1996. Thereafter this Court will hear the counsel who support the view that the Court does not have the power to modify an Award under Sections 34 and 37 of the 1996 Act. While examining the aforesaid question the Court will also examine the contours and scope of the power of the Court under Sections 34 and 37 of the 1996 Act and if the power of modification exists to what extent the same can be exercised. The question of severability will also be addressed and examined.

Summary

In the Supreme Court of India, the case involves a Special Leave Petition (SLP(C) Nos. 15336-15337/2021) where the Court has issued an order regarding the amount of 50,00,000 deposited with the Registrar, High Court of Judicature at Madras. This amount will be converted into an interest-bearing Fixed Deposit (FD) for six months with an auto-renewal clause, pending further orders or the final outcome of the appeals.The case is scheduled to be re-listed on February 13, 2025, before a Constitution Bench. The primary legal issue to be addressed is the reconsideration of the precedent set in Project Director, NHAI v. M. Hakeem (2021) 9 SCC 1, concerning the Court's power to modify an arbitration award under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996 ("The 1996 Act"). The Court will first hear arguments from counsel advocating for the ability to modify awards, followed by those opposing this view. The examination will include the scope of judicial power under Sections 34 and 37, the extent of any modification power, and the question of severability.Parties are instructed to submit written submissions, not exceeding three pages, and the judgments they rely upon by February 7, 2025. Counsel on both sides will share two hours to present their arguments.