Case Note & Summary
The petitioner, Eitzen Bulk A/S, a Danish company, entered into a Contract of Affreightment (COA) with the respondent, Ashapura Minechem Ltd., an Indian company, on 18th January 2008 for shipment of bauxite from India to China. The contract contained an arbitration clause providing for London arbitration and English law. After two shipments, the respondent terminated the contract on 29th September 2008 citing force majeure due to Gujarat Government interference. Disputes arose and were referred to arbitration in London. The arbitral tribunal passed an award on 26th May 2009 in favor of the petitioner. The petitioner filed this petition under Sections 44 to 48 of the Arbitration and Conciliation Act, 1996 seeking enforcement of the award as a decree and interim reliefs including asset disclosure. The respondent opposed enforcement on grounds of public policy and lack of opportunity to present its case. The court examined the award and found no violation of Indian public policy or natural justice. The court held that the award is enforceable and directed the respondent to file an affidavit disclosing its assets, bank accounts, and receivables in India and overseas. The petition was allowed with costs.
Headnote
A) Arbitration - Enforcement of Foreign Award - Sections 44-48 Arbitration and Conciliation Act, 1996 - Petitioner sought enforcement of a London arbitral award - Court held that objections based on public policy and lack of opportunity to present case were not substantiated - Award declared enforceable as decree - Respondent directed to file affidavit disclosing assets (Paras 1-2).
Issue of Consideration
Whether the foreign arbitral award dated 26th May 2009 is enforceable as a decree of this Court under Sections 44 to 48 of the Arbitration and Conciliation Act, 1996, and whether the respondent is liable to disclose its assets.
Final Decision
The court allowed the petition, declared the arbitral award dated 26th May 2009 enforceable as a decree of this Court, and directed the respondent to file an affidavit disclosing its assets, bank accounts, and receivables in India and overseas.
Law Points
- Enforcement of foreign arbitral award
- Public policy challenge
- Opportunity to present case
- Asset disclosure order
- Sections 44-48 Arbitration and Conciliation Act
- 1996
Case Details
2015 LawText (BOM) (12) 47
Arbitration Petition No.561 of 2009 along with Notice of Motion No.3143 of 2009
Mr.Prashant Pratap, Senior Advocate a/w Mr.Ashwini Sinha a/w Mr.Hari Wadhwana i/by Mr.Harsh Pratap for the Petitioner/Applicant. Mr.G.R.Joshi, Senior Advocate a/w Mr.Amrut Joshi a/w Mr.Nishit Dhruva a/w Mr.Prakash Shinde a/w Ms.Ambrin Saheed i/by M/s.MDP & Partners for the Respondent.
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Nature of Litigation
Petition for enforcement of foreign arbitral award under Sections 44 to 48 of the Arbitration and Conciliation Act, 1996.
Remedy Sought
Declaration that the arbitral award dated 26th May 2009 is enforceable as a decree of this Court and interim reliefs including an order directing the respondent to file an affidavit disclosing its assets, bank accounts and receivables in India and overseas.
Filing Reason
The respondent failed to comply with the arbitral award passed in London in favor of the petitioner.
Previous Decisions
Arbitral award dated 26th May 2009 passed by the London arbitral tribunal.
Issues
Whether the foreign arbitral award is enforceable under Sections 44 to 48 of the Arbitration and Conciliation Act, 1996.
Whether the respondent is liable to disclose its assets for enforcement of the award.
Submissions/Arguments
Petitioner argued that the award is final and binding and should be enforced as a decree.
Respondent opposed enforcement on grounds of public policy and lack of opportunity to present its case.
Ratio Decidendi
A foreign arbitral award is enforceable under Sections 44 to 48 of the Arbitration and Conciliation Act, 1996 unless objections based on public policy or lack of opportunity to present case are made out. The court found no such grounds and ordered enforcement.
Judgment Excerpts
By this petition filed under Sections 44 to 48 of the Arbitration and Conciliation Act, 1996 (for short “Arbitration Act”), the petitioner prays for a declaration that the arbitral award dated 26th May 2009 is enforceable as a decree of this Court and seeks various interim reliefs including an order and direction against the respondent to file an affidavit through its Directors disclosing its assets, bank accounts and receivables wherever these be located in India and overseas.
Procedural History
The petitioner filed Arbitration Petition No.561 of 2009 on an unspecified date. The court reserved judgment on 28th October 2015 and pronounced on 3rd December 2015.
Acts & Sections
- Arbitration and Conciliation Act, 1996: 44, 45, 46, 47, 48
