Supreme Court’s Recent Ruling Creates Uncertainty as to Enforcement Abroad: Says VK Rajah

In a recent event, VK Rajah, Vice President of ICC International Court of Arbitration mentioned how India has made significant progress in arbitration and how a Supreme Court ruling on modification of arbitral awards has created uncertainty.

While speaking at Gujarat High Court Arbitration Week 2026, the former Singapore Judge and Attorney General said that the arbitration practitioners outside India were concerned about how and when Indian courts may modify arbitral awards.

This concern arose from the Supreme Court ruling in Gayatri Balasamy v. ICG Novasoft Technologies Ltd., which stated that courts have limited power to modify arbitral awards while dealing with challenges under Section 34 of the Arbitration and Conciliation Act 1996.

He said that this case can make the enforcement less predictable when the award is required to be enforced outside India. At the same time, he appreciated how India is progressing in arbitration. He described the journey as a “jagged trajectory” with great progress but occasional setbacks.

The concern is that international businesses require arbitration outcomes to be predictable and enforceable across borders. For India to become a strong arbitration hub, consistency and certainty will remain crucial.