Supreme Court On Challenge To Pre-BALCO Awards

Pre-BALCO foreign awards cannot be challenged under Section 34 of Arbitration & Conciliation Act, 1996

Introduction

The Hon'ble Supreme Court of India in its recent judgment¹ delivered on 26.11.2020, has reaffirmed that even if a contract is entered to or an award is rendered, pre-BALCO, a petition under Section 34 of the Arbitration and Conciliation Act, 1996 ("Act") cannot be resorted to, for challenging a foreign award.

Facts of the Case

1. On 30.01.1995, Jindal Drugs Limited ("Respondent") entered into four related agreements with Engineering Chur AG ("Enco") to set up an ascorbic acid plant in India.
2. In March, 1995, with the consent of the Respondent, Enco assigned the agreements to Noy Vallesina Engineering SpA ("Appellant").