The corridor of uncertainty diminishes following another pro international arbitration judgment from the Indian Supreme Court

For international parties who have contracted with Indian counterparties and agreed to refer disputes to international arbitration, a critical issue is the degree to which the Indian courts have jurisdiction to review and set aside awards.

In the landmark decision of Reliance Industries Limited & Anr v Union of India handed down on 28 May 2014, the Indian Supreme Court has confirmed that the Indian courts do not have jurisdiction to set aside an arbitral award in circumstances where the parties have (i) agreed to refer disputes to arbitration with a seat in London and (ii) provided for English law to govern their arbitration agreement. Rather, any application to set aside an award in this case should be made to the English courts.

International investors who have entered into an arbitration agreement with an Indian counterparty before 6 September 2012, which does not expressly exclude Part I of the Indian Arbitration and Conciliation Act 1996 Act, are likely to be interested in this judgment. We explain briefly why below…

Click on the link below to read the rest of the Allen & Overy briefing.

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