Delhi High Court Examines Limits Of Arbitration Agreements And Scope Of Anti Arbitration Injunctions

In a significant judgment on arbitration agreements and anti-arbitration injunctions, the Delhi High Court ("Delhi HC"), in the case of SARR Freights Corporation and Anr. vs. Argo Coral Maritime Limited¹, examined whether a Civil Court may intervene to restrain arbitration proceedings that are alleged to be oppressive, vexatious or initiated in the absence of a valid arbitration agreement.

The Delhi HC analysed issues relating to jurisdiction of civil courts, existence of a binding contract, validity of the arbitration clause, and the circumstances in which courts may restrain arbitration proceedings.

The judgment is important in the context of international commercial contracts and foreign-seated arbitration, particularly where a party disputes the existence of the underlying contract or the arbitration clause.