International Arbitration and its Interim reliefs in India
- Iti Singh
In this Research Paper, having divided it twofold, I have briefly touched upon the emergence of International Arbitration in India, then quartered into interim reliefs granted by the Courts to ensure natural justice, the internal remonstrance encountered as well as created – either by judicial intervention in granting Interim measures or the limited powers bestowed upon Arbitral tribunals for granting the same. I have further elucidated my opinion on the stumbling blocks and impediments that had gridlocked India from becoming a destination for International Arbitration in Part I.
In Part II, I have ultimately proceeded to confabulate the table turning landmark judgment of Supreme Court in the BALCO case, overruling the judgment of Bhatia International v. Bulk trading putting a prerequisite brick wall to judicial intervention in India. This part of my research paper will consider the advantages of henceforth holding Arbitration in India benefiting foreign investors largely.
In Part III, I have consummated my Research Paper by succinctly discussing the future of Arbitration in India post the BALCO case changing the face of Arbitration in India.
Part I: International Arbitration and Interim Reliefs provided in India:
Arbitration, as defined by McIlwraith, is a process by which parties agree to the binding resolution of their disputes by adjudicators, known as arbitrators, who are selected by the parties, either directly or indirectly via a mechanism chosen by the parties.
Due to an accelerated swift seen in globalization in the world as well as India, there has been a compelling increase in the role of international trade which has developed the economy of nations in the last few decades. This very phenomenon of Globalization has led to a pervasive increase in the number of commercial disputes. As a result, Multi National Corporations have actualized the demand for alternative dispute resolution mechanisms, including arbitration which has now become crucial for businesses operating in India as well.
Arbitration in India was well conceived with the Indian Arbitration Act 1940, under which judicial intervention was required in all three stages of arbitration: before referring the dispute to the arbitral tribunal, during the proceedings, and after the award was passed. The judicial court was required to determine whether a dispute existed and whether it could be resolved through arbitration. Further, before the arbitral award could be enforced, it was required to be made the rule of court.
The 1940 Act determinately stepped up with the introduction of Arbitration and Conciliation Act, 1996 by the Indian legislature.
The 1996 Act is...