In
Bharat Aluminium Co v Kaiser Aluminium Technical Services
Inc1 the Indian Supreme Court overruled the
controversial decision of
Bhatia International v Bulk Trading S.A2 and
restricted the ability of local courts to interfere in
international arbitrations seated outside India.
The judgment only has prospective applicability and
Bhatia will therefore continue to have an impact in
commercial arbitrations where arbitration agreements have already
been entered into for the foreseeable future.
A brief history
In Bhatia, the Supreme Court considered a request for
interim relief under Part I of the Indian Arbitration and
Conciliation Act 1996 (the "Act"). Part I confers
significant powers on Indian courts, including the ability to order
interim measures and set aside awards. Even though Part I seemingly
only applied to domestic arbitrations, the Supreme Court
interpreted the Act in a manner that allowed Part I to be applied
to foreign seated arbitrations, unless
