SC Overrules Bhatia International: Conversation With Intervenor's Counsel Promod Nair

A Constitution bench of the Supreme Court yesterday, delivered a landmark judgment in Bharat Aluminium Co v Kaiser Aluminium Technical Services Inc (Balco) overruling the doctrine laid down in 2002 by the same Court in Bhatia International v Bulk Trading S.A. (Bhatia International).

In Bhatia International, the Supreme Court had held that Part I of the Indian Arbitration and Conciliation Act, 1996 dealing with the power of a court to grant interim relief, could be applied to arbitration disputes with a foreign seat unless the parties specifically opted out of such an arrangement.

The Bench said, "We are of the considered opinion that Part I of the Arbitration Act, 1996, would have no application to international commercial arbitration held outside India. Therefore, such awards would only be subject to the jurisdiction of Indian courts when the same are sought to be enforced in India in accordance with the provision contained in Part II of the Arbitration Act, 1996."