AN AWARD U/S 33 OF THE ARBITRATION ACT CAN ONLY BE MODIFIED IN CASE OF ARITHMETIC OR CLERICAL ERROR - SC

A Bench of Justices MR Shah and BV Nagarathna of the Top Court has held that an arbitral award can be altered or modified by way of an application u/s 33 of the Arbitration and Conciliation Act, 1996 only in case of arithmetic or a clerical error. 

The bench was hearing a dispute regarding the recovery of pure gold weighing 3648.80 grams in possession of the appellant. 

The respondent invoked the arbitration clause and, a retired district judge was appointed as the arbitrator. The sole arbitrator directed the appellant to return the gold within 18% interest from July 24, 2004, to the date of delivery of the gold. The arbitrator calculated the value of gold at ₹740 per gram. 

Subsequently, the respondent applied under Section 33, seeking to modify the award. It requested to delete "at ₹740 per gram" and substitute the same by "₹20,747 per 10 grams". The arbitrator allowed the application, which was upheld by the City Civil Court and the Karnataka HC. And hence, the present appeal before the Top Court. 

The appellant argued that the order was beyond the jurisdiction of the arbitrator under Section 33 as there was no arithmetic or clerical error. The Court agreed with the same and held that the order challenged was beyond the scope of section 33 as there was no arithmetical or clerical error in the original award passed by the arbitrator. 

Author: Papiha Ghoshal