How To Determine Conversion Of Arbitral Award In Foreign Currency To Indian Currency? Supreme Court Explains

In a significant judgment relating to International Commercial Arbitration, the Supreme Court has decided the two important questions on the enforcement of an arbitral award expressed in foreign currency to Indian Currency.The two questions that appeared for the Court's consideration were:Firstly, what is the correct and appropriate date to determine the foreign exchange rate for converting the award amount expressed in foreign currency to Indian rupees? The Court said that the relevant date...

Single Judge Of Commercial Division Has Jurisdiction Over Original Applications In International Commercial Arbitration: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that original applications related to International Commercial Arbitration are to be entertained by the Single Judge of the Commercial Division. The High Court held that the Commercial Courts Act, 2015 defines the Commercial Division and the Commercial Appellate Division distinctly. The Commercial Division, comprised of a Single Judge as per Section 4(1), handles original applications and appeals arising from...

Enforcement Of Foreign Arbitral Award, Repeated Non-Compliance; Rajasthan High Court Sentences Director Of Company Civil Imprisonment

The Rajasthan High Court bench of Dr. Justice Nupur Bhati has ordered the director of a company to one month of civil imprisonment for failing to disclose its assets in the enforcement of a foreign arbitral award. The High Court with its prior judgment ordered the foreign award to be enforceable and executable as a decree of the court. For the enforcement and execution of this decree, Mamta Hygiene Products Pvt Ltd (Respondent) was directed to disclose its assets by filing an affidavit...

[Arbitration Act] Enforcement Of Foreign Awards Should Not Be Declined On Composition Of Tribunal If Not Raised Before Tribunal Or Seat Court: Delhi High Court

The Delhi High Court bench of Justice Prateek Jalan held that enforcement of foreign awards should not be declined on grounds relating to the composition of the tribunal, which could have been raised before the Tribunal and before the seat Court, but were not so raised. It held that the judgment debtor did not object, even at the stage of appointment, on this ground. The bench held that: “This argument is quite evidently an afterthought, intended only as speculative litigation with...

Misconceived Section 9 & Section 11 Applications; Bar Should Take Necessary Steps, Spare Courts Of 'Unpleasant Duty': Calcutta High Court

The Calcutta High Court single bench of Justice Ravi Krishan Kapur held that it is for members of the Bar to introspect and take necessary steps and spare the Courts of the unpleasant duty. The decision came while reviewing applications presented before the Commercial Court and High Court, which were held to be beyond their jurisdiction. Specifically, the Commercial Court was held to be not empowered to entertain applications under Section 9 of the Arbitration and Conciliation Act,...

[Arbitration Act] Public Policy While Considering Enforcement Of Foreign Awards Has To Be Construed Narrowly, In Consonance With International Notions: Delhi High Court

The Delhi High Court bench of Justice Prateek Jalan held that the public policy argument while considering enforcement of foreign awards has to be construed narrowly and in consonance with international notions of public policy. The bench held that all violations of statute or supporting legislation do not satisfy this ground, and violations must be of fundamental policies considered shocking to the conscience of the Court. Brief Facts: The matter pertained to arbitral awards...

[Contempt Of Court] Delhi High Court Directs International Avenue To Deposit Rs. 5 Crores Within One Week Considering Due Of 15 Crores Arbitral Award

The Delhi High Court bench of Justice Prathiba M. Singh has directed International Avenue to deposit Rs. 5 crores within one week considering the substantial amount due under the arbitral award. The bench held that despite providing multiple opportunities to the company, it failed to comply with the order. It held that this constituted contempt of court. Brief Facts: The Judgment Debtor, International Avenue, filed a petition under Section 34 of the Arbitration and Conciliation Act,...

S. 9 Petition for Interim Relief in International Commercial Arbitration Not Classified as 'Arbitration Case', Must Be Filed as 'Miscellaneous Civil Case': Madhya Pradesh High Court

The Madhya Pradesh High Court division bench of Justice Sushrut Arvind Dharmadhikari and Justice Devnarayan Mishra dismissed a petition seeking interim relief under Section 9 of the Arbitration and Conciliation Act, stating it should have been filed as a 'Miscellaneous Civil Case' rather than an 'Arbitration Case' based on Chapter 2 of the Arbitration and Conciliation (Conduct of Arbitral Proceedings) Rules, 2008. Brief Facts: Ilwonhibrand Co. Ltd. (“Petitioner”) entered into a sale...

Calcutta High Court Dismisses Petition Opposing Enforcement Of Foreign Arbitral Award Based On Constructive Res-Judicata

The High Court of Calcutta has dismissed an application by Hindustan Copper Limited (HCL) under Sections 48/49 of the A&C Act seeking to refuse enforcement of the foreign award in favour of the Centrotrade Minerals. The bench of Justice Sugato Majmudar held that once the enforceability of an award is affirmed by the Supreme Court, it cannot be opposed on a new ground which could have been taken in earlier proceedings in relation to the enforceability. It held that such an ...

Enforcement Of Foreign Award Must Be Refused Only Rarely, International Standards To Be Applied To Determine Bias : Supreme Court

In a crucial judgment, while allowing the enforcement of a foreign arbitral award, the Supreme Court (on March 04), held that to determine the factor of arbitral bias, Court must endeavour to follow international standards than domestic ones. It is only in exceptional circumstances that enforcement of a foreign should be refused on the ground of bias., the Court said."Embracing international standards in arbitration would foster trust, certainty, and effectiveness in the resolution of...

English Translated Copy Certified By A Sworn Or Official Translator Is Sufficient Compliance Of Section 47(2) Of The A&C Act: J&K High Court

The High Court of Jammu & Kashmir High Court has held that filing of an English translated copy certified by an official or sworn translator satisfies the requirement of Section 47(2) of the A&C Act which provides that if an award is in a foreign language, a translated copy of the award is to be filed for the purpose of the enforcement of the foreign award and the same has to be certified by the Consular or Diplomatic agent of the award holder’s country. The bench of Justice...

Whether Enforcement Of Foreign Arbitration Award Can Be Denied Due To Non-Stamping Of Arbitration Agreement? Delhi High Court To Examine

The Delhi High Court is set to examine whether the enforcement of a foreign arbitration award can be denied due to the non-stamping of the arbitration agreement. The bench of Justice Manoj Kumar Ohri has issued notice on a plea seeking to raise objection to the enforcement of the Singapore seated foreign arbitration award under Section 48 of the A&C Act. The award debtor raised objections to the enforcement of the foreign seated arbitration award on the ground of...