Q: Delineate international commercial arbitration ?

Ans: There was a requirement of international arbitration for the matters of international dispute and hence international commercial arbitration was introduced by UNCITRAL Model law on international commercial arbitration which was adopted in 1985.
The Geneva Convention 1927 and New York Convention 1958 was also introduced for international commercial arbitration.

The New York Convention was established as a result of dissatisfaction with the Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution of Foreign Arbitral Awards of 1927.

In international arbitration,  one party must be of foreign country.

Bharti International  Vs. Bulk trading,  2002, the honorable Supreme Court held rules against domestic law can be eliminated.

Parties outside India will not get interim relief by court except in specific circumstances.

Under the Bhatia Regime, all the provisions of part 1 of Arbitration and Conciliation Act , 1996 were to be applicable to all Arbitration whether domestic or foreign seated unless the party by agreement,  expressed or implied had excluded wholly or partly, the provisions of part 1 of this act.

It was overruled by honourable Supreme Court in Bharat Aluminum Company Vs. Kaiser Technical Services,  2012.

Facts: 

1.An agreement was made on 22 April 1993, between BALCO and Kaiser, under which it was stated that Kaiser has to supply and install a computer at the BALCO's premises.

2. According to the arbitration agreement, if any kind of dispute arises, the proceedings will be held in London under English law. Further, the agreement says that governing law under the agreement will be Indian law. But the arbitration proceeding will still be held under English law.

Judgement

The court ruled that Part 1 of the law does not apply to instances in which the arbitration occurs outside of India. It will only apply to arbitrations in which India is the seat of the, arbitration. The court concluded that the arbitration agreement could only be governed by English law. In light of this, the court likewise dismissed the section 34 applications while upholding the high court's ruling.

Comments

Post a Comment

Popular posts from this blog

Q: Delineate the selection of arbitrator in Arbitration and Conciliation Act ?

Ans:  Arbitrator is appointed in arbitration by arbitration tribunal.  The definition of Arbitration is given under Section 2(1)(a) of Arbitration and Conciliation Act,  1996. According to section 2(1)(a) of arbitration and conciliation act,  1996,  arbitration ” means any arbitration whether or not administered by permanent arbitral institution. The ICA was established in 1965 as a specialized arbitral body at the national level under the initiatives of the Government of India and apex business organizations FICCI. FICCI is Federation of Indian Chambers of Commerce & Industry.  The main objective of ICA is to promote amicable, quick and inexpensive settlement of commercial disputes by means of arbitration, conciliation, regardless of location.   Delhi Institute of International Arbitration is also a permanent arbitral institution. 
Read more

Q: Elaborate the foreign award and explain the appeal in domestic award and foreign award ?

Ans:  There are two acts i.e., Arbitration Act, 1937 that finds its genesis from the Geneva Protocol, 1923 as well as Geneva Convention, 1927 and similarly, the foreign awards (Recognition and Enforcement) Act, 1961 finds its root in New York Convention, 1958. In accordance with Section 44 of the Arbitration and Conciliation Act, 1996, a foreign award is defined as, “an arbitral award on differences that are related to the matters which are deemed commercial under the Indian law”. The two requirements for an award to be a foreign award are, firstly, it should resolve the discrepancies which result from a commercial legal relationship or a relationship that is considered commercial under the Indian law. Secondly, the country that is issuing the award must be a country that has been designated by the Indian Government as a country in which the New York Convention is made applicable. Hence only such arbitral awards are considered and implemented as foreign arbitral...
Read more

Q: What is Res Sub Judice ?

Ans: Any such matter already referred to the arbitration can be entertained by the arbitral tribunal and cannot be referred to civil courts or any other court only if the subject matter is barred under section 8 and is not maintainable under the arbitration . Res Sub judice is a Latin maxim that translates as "under judgement." The rule of the sub judice is based on public policy, which forbids the plaintiff from filing two parallel claims on the same subject matter, limiting the possibilities of two courts issuing contradicting rulings. Section 10 of civil Procedure Code. 
Read more