Step 1: Understand the main idea.
Arbitration is a private way to settle disputes without going through long court trials. Section 5 of the Arbitration and Conciliation Act, 1996 protects this private process by keeping courts out of it as much as possible.
Step 2: Read the rule of Section 5.
Section 5 says that in matters governed by Part I of the Act, no judicial authority shall step in except where the Act itself allows it. This is called the principle of minimum judicial intervention.
Step 3: Note when courts can step in.
A court can only intervene where a specific section of the Act gives it that power. For example, Section 9 allows interim measures, and Section 34 allows a challenge to an award. So the permission must come from the Act.
Step 4: Check the wrong options.
Both parties simply asking for supervision (option 1) does not open the door, because Section 5 does not work on request. A vague claim of procedural irregularity with no specific provision (option 3) is also not enough. The court finding the award unjust on facts (option 4) is not allowed, since courts cannot re-judge the facts.
Step 5: Pick the option that fits the section.
Only the option that says the court may intervene when the Act expressly permits it matches the exact wording and spirit of Section 5.
Step 6: State the answer.
So intervention is allowed only where the Act expressly provides for it. \[ \boxed{\text{When the Act expressly permits such intervention.}} \]