Wednesday, May 27, 2026
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ArbitrationLatestLegalMay 2026Supreme Court

Section 33(1)(a) – Powers of Commercial Court to Modify Award

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 judgment dated 26.5.2026 of the Supreme Court in 2026 INSC 552 -in Civil Appeal Nos.769-770 of 2026 of Gujarat Water Supply and Sewerage Board   Vs.  Saryu Plastics Pvt Ltd.

The chronology of events starting from the appointment of the Arbitrator on 19.4.2012 are given in paras 3.1 to 3.33 till passing of the Award partly on 27.10.2015 and corrected Award on 8.11.2015.

On 3.12.2015 the Board filed section 34 petition.

On 7.12.2015, the Company filed section 33 application for correction in para 54© of the Award for substituting “compound interest” in place of “simple interest”

The Arbitrator did not entertain this section 33 application in view of section 34 petition of the Board.

However, the Commercial Court modified the Award and granted compound interest for the pendente lite period as well.

One of four issues was whether the Commercial Court has powers to modify the Award under Section 33(1)(a) to substitute simple interest with compound interest.

AS a result, the liability of the Board has increased from Rs.30.38 crores to Rs.144.93 crores.

One of the issues was  – whether the mandate of the Arbitrator subsisted at the time of passing the Award

It was HELD that section 33(1)(a) is neither designed nor intended to serve as a vehicle for the substantive modification of Award or review of the merits of the findings of the Arbitrator.   The said provision is confined strictly to the correction of arithmetic and clerical errors.   It cannot be stretched to re-examine or revise the substantive findings of the Award.

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