A. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 34, 37 -- Modification in award – Power of -- Court has a limited power under Sections 34 and 37 of the 1996 Act to modify the arbitral award -- This limited power may be exercised under the following circumstances:

I. when the award is severable, by severing the “invalid” portion from the “valid” portion of the award.

II. by correcting any clerical, computational or typographical errors which appear erroneous on the face of the record.

III. post award interest may be modified in some circumstances.

IV. Article 142 of the Constitution applies, albeit, the power must be exercised with great care and caution and within the limits of the constitutional power.

(Para 85)

(Reference answered with majority opinion 4:1)

B. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 31 – Code of Civil Procedure, 1908 (V of 1908), Order 23 -- Arbitration award -- Post award settlement -- Parties are entitled to enter into an agreement or settlement even after an award is pronounced -- Such a settlement should be in accordance with the provisions of Order XXIII of the Code -- The law of the land does not bar the parties from entering into a post award or post decree settlement -- Only legal requirement is that such settlement must be verifiable and in accordance with law i.e., the settlement is not a result of undue influence, force, fraud, coercion, etc.

(Para 80)