Proceedings U/s 34 Arbitration & Conciliation Act Not Maintainable Against Foreign Award: Supreme Court
4 years, 3 months ago

Proceedings U/s 34 Arbitration & Conciliation Act Not Maintainable Against Foreign Award: Supreme Court

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The Supreme Court has observed that the proceedings under Section 34 of the Arbitration and Conciliation Act is not maintainable to challenge a foreign award, In this case, Jindal filed a petition before the Bombay High Court under Section 34 of the Act challenging the partial award. & Anr and Venture Global Engineering v. Satyam Computer Services Ltd. & Anr, held that proceedings under Section 34 of the Act could be validly maintained to challenge a foreign award. Having regard to the precedential unanimity, so to say, about the manner of applicability of BALCO in respect of agreements entered into and awards rendered earlier, with respect to the law of the seat of arbitration excluding applicability of Part I of the Act, and the unambiguous intention of the parties in the present case that the seat of arbitration was London, where the ICC arbitration proceedings were in fact held, and the awards rendered, this court is of the opinion that the impugned judgment cannot be sustained. Taking note of other judgments which followed BALCO, the bench observed thus: Having regard to the precedential unanimity, so to say, about the manner of applicability of BALCO in respect of agreements entered into and awards rendered earlier, with respect to the law of the seat of arbitration excluding applicability of Part I of the Act, and the unambiguous intention of the parties in the present case that the seat of arbitration was London, where the ICC arbitration proceedings were in fact held, and the awards rendered, this court is of the opinion that the impugned judgment cannot be sustained.

History of this topic

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