Facts:
Bharat Aluminium v Kaiser Aluminium [Civil Appeal No.7019
of 2005] judgment overruled the Supreme Court’s earlier decision in Bhatia International v Bulk Trading SA
[(2002) 4 SCC 105], much criticised by the international arbitration community.
In Bhatia, In Bhatia International, the court had
interpreted Section 2 of the Indian Arbitration and Conciliation Act 1996 in a
manner that allowed Part I of the Act (which provided for remedies such as
awarding interim relief and setting aside of arbitral awards) to be applied
even in the context of arbitration seated outside of India
Decision:
In Barat, the court
held that:
- The decision in the case of Bhatia International has been
overruled;
- Part I of the Act (which vests
courts with the powers of awarding interim relief in support of
arbitration, and setting aside arbitral awards) only applies to
arbitrations seated within India;
- Awards rendered in foreign seated
arbitrations are only subject to the jurisdiction of Indian courts when
they are sought to be enforced in India under Part II of the Act;
- Indian courts cannot order interim
relief in support of foreign seated arbitrations;
- The decision of the court in Bharat Aluminium only applies to
arbitration agreements entered into after 6 September 2012.
Source: http://www.taylorwessing.com/news-insights/details/indian-supreme-court-judgment-welcomed-by-international-arbitration-community-2012-09-11.html
http://hsfnotes.com/arbitration/2012/09/06/supreme-court-of-india-delivers-landmark-arbitration-decision-in-bharat-aluminium-overruling-bhatia-trading/
No comments:
Post a Comment