Section 34(4) of AA -Application for remand to the Arbitrator to eliminate grounds of challenge to the arbitral award on certain issues –

Judgment dated 4.10.2023 of the Madras High Court in  Application No.2497 of 2023 in Arb.O.P. (Com.Div) Nos.190 and 433 of 2023 in the case of M/s. Evolve Business Ventures Vs. The Airport Director, Airport Authority of India, Chennai Airport, Chennai 156.

Section 34(4) of AA – Application for remand to the Arbitrator to eliminate grounds of challenge to the arbitral award on certain issues –

Both the parties challenged the arbitral award The impugned award dated 16.2.2023 as modified by the order dated 26.3.2023 under Section 34(1) on the grounds of perversity and patent illegality under Section 34(2)(b)(ii) of the AA.

HELD

On harmonious reading of Sections 31, 34(1), 34(2-A) and 34(4), the Court in appropriate cases, can give an opportunity to the arbitrator to resume arbitral proceedings to give reasons or to fill in the gaps in the reasoning.   However, when there is patent illegality in the award itself, such prayer for remand cannot be granted.

Moreover, the issues cannot be severed and have to be decided together.  

Remission is limited to an opportunity to arbitral tribal to cure defects without impacting the foundation of the award.

Section 34(4) is curative in nature and recourse can be taken only for correcting curable defects of filling gaps in reasoning or errors.