The Delhi High Court Grant Anti-Arbitration Injunction

The Delhi High Court has sent an extremely negative message to the international community with its judgement in the case of Vikram Bakshi & Anr vs McDonalds India Pvt Ltd & Ors, wherein the Court granted an anti-arbitration injunction. To begin with, an injunction is an order addressed to the parties, compelling and/or preventing them from doing certain specific acts. Thus, an anti-arbitration injunction is an order compelling the parties not to arbitrate their disputes. An order such is this, is as unpopular as it is uncommon since its enforceability is dependent on foreign courts and arbitral institution recognizing such order and enforcing it.

Notwithstanding the complications involved, the Delhi High Court went ahead and passed an order refraining the Defendants from pursuing arbitral proceedings under the LCIA, in London.