Allegations Of Fraud Not A Bar To Foreign Seated Arbitration

• Supreme Court held that allegation of Fraud is not a bar to refer parties to foreign seated arbitrations;
• The law does not require a formal application to refer parties to arbitration;
• If an arbitration agreement exists and a party seeks reference to a foreign seated arbitration, court is obliged to refer the parties to arbitration;
• The only exception is in cases where the court finds the arbitration agreement to be null and void or inoperative or incapable of being performed.

INTRODUCTION

In a landmark decision the Supreme Court of India has expressly removed allegations of fraud as a bar to refer parties to foreign seated arbitrations. The Supreme Court by its decision dated January 24, 2014 in World Sport Group (Mauritius) Ltd ("WSG") v. MSM Satellite (Singapore) Pte. Ltd ("MSM") set aside the judgment of the Division Bench of the Bombay High Court ("Bombay HC") in MSM Satellite (Singapore) Pte. Ltd v. World Sport Group (Mauritius) Ltd dated