Limited Scope Of Interference With An International Commercial Arbitration: Delhi HC [Read Judgment]
Live LawIn a significant ruling while discussing the scope of judicial interference with awards of an international commercial arbitration, the Delhi High Court on Tuesday dismissed a German manufacturer's claim for damages against BHEL, India. "the scope of interference for International Commercial Arbitration, in India, subsequent to the amendment of Section 34 of the Act, has been narrowed down and even patent illegality is no longer a ground available to challenge International Commercial Award passed in India," the single-Judge bench of Justice Sanjeev Narula held. Holding that under Section 44 of the Act, a conditional offer of delivery is not suffice, the court said, "…in view of Respondent's refusal and unwillingness to accept the goods, Petitioner could have dispatched the goods and sent them to Respondent's office, without first insisting on a formal expression of readiness to accept the goods and indication of the address where the goods were to be sent." The court concurred with BHEL that in order to absolutely establish its claim for damages, the manufacturer ought to have complied with the conditions stipulated under Clause 25, and ought to have first shipped the goods to Mumbai/Haridwar.