In a judgment delivered by Five Judge Constitutional Bench of the Supreme Court in Bharat Aluminium v. Kaiser Aluminium Technical Services, the Court held that Part - I of the Indian Arbitration Act, 1996 (Act) will have no applicability over international commercial arbitrations held outside India in respect of arbitration agreements entered into hereafter.
The seat of arbitration will govern the jurisdiction and once the parties have decided to have arbitration outside India, no interim relief can be granted by Indian courts. The court further clarified that a foreign arbitral award cannot be challenged under Part-I of the Act.
Written by Sumeet Lall, Partner, Clasis Law (New Delhi); Harsh Pratap, Partner, Clasis Law (Mumbai); and Sagar Divekar, Partner, Clasis Law (Mumbai)
Please click here to view the update.