The Allahabad High Court, with Justice Shekhar B. Saraf presiding as a single bench, ruled that under Section 33 of the Arbitration and Conciliation Act, 1996, an arbitral tribunal does not have the authority to recall or modify its award. The court emphasized that none of the provisions within the Arbitration and Conciliation Act grant such power to the arbitral tribunal, and any act exceeding the tribunal’s scope under this Act is deemed void ab initio.
The bench highlighted the specific provisions of Section 33, which allow the arbitral tribunal to correct and interpret the award, and even make an additional award for claims omitted from the initial award, upon request from a party. However, the tribunal’s ability to correct errors or make interpretations is subject to specific timelines and party requests. The court clarified that these provisions do not extend to granting the tribunal the authority to recall or modify its award.
The court underscored that arbitral tribunals are not akin to courts of law and do not possess inherent powers. They are bound by the terms of the arbitration agreement and the legal framework outlined in the Arbitration Act. The bench emphasized the principle of kompetenz-kompetenz, whereby tribunals must determine their jurisdiction within statutory confines. Once an award is rendered, the doctrine of functus officio dictates that the tribunal’s jurisdiction over the matter is concluded, barring exceptional statutory provisions.
In light of these observations, the High Court concluded that the arbitral tribunal had erred in issuing subsequent awards beyond its prescribed authority. Consequently, these awards were deemed invalid and were set aside by the court.
The High Court directed a new adjudication of the matter by an Arbitrator appointed by the Central Government under the Act, to be completed within six months from the receipt of the court’s order.
