Practical Realignment Of Arbitration Law By The Supreme Court Of India: An Analysis

Arbitration in India has been one of the rather uncertain fields of jurisprudence. The lack of uniformity in the judiciary's approach, multiple levels of challenge (which are more often than not exploited as appeals) and overburdened courts suffering from chronic delays, have largely impeded India's growth as a preferred jurisdiction for international arbitration(s). One of the most discussed, criticised and written upon issues in this sphere has been the over-reaching attitude of the Indian courts to sweep within their jurisdiction arbitral proceedings "seated" outside India. The law, as it exists today, in relation to foreign seated arbitrations, arising out of agreements entered into after 6th September 2012, has been settled by the constitutional bench of the Supreme Court in Bharat Aluminium Company v Kaiser Aluminium Services Inc.¹ (Balco). In the said case, the Supreme Court has held that Part 1 of the Arbitration and Conciliation Act, 1996 (Act) shall not be