In this week's post, Anushree Chandra writes about the enforceability of emergency arbitration awards in the Indian context.
The Supreme Court, on 6 August 2021, ruled in a judgment that emergency arbitration awards are enforceable under Indian law. The Court was deciding the dispute between the e-commerce giant Amazon and Future Retail Limited (FRL). The Court, ruling in favor of Amazon, held that it was incorrect to say that Section 17(1) of the Arbitration and Conciliation Act (which deals with interim measures ordered by an arbitral tribunal) excludes an emergency arbitrator’s orders. It was further held that a single judge’s order for such an emergency arbitration award cannot be appealed under Section 37(2). Through this decision, the Supreme Court has reinforced the concept of party autonomy in arbitration. Moreover, it has also established a legal position in India which allows for urgent interim reliefs in complex commercial matters. Various states like Singapore, Hong Kong, and New Zealand had already statutorily recognized emergency arbitration and with this judgment, India is now at par with such countries. The judgment is also in line with the mechanism adopted by several arbitral institutions like ICC, ICDR, SIAC, SCC, and LCIA. This will enable India to become more friendly towards international arbitration. Furthermore, the judgment also adheres to the 2006 updated UNCITRAL Model Law on International Commercial Arbitration, which allows for the enforceability of emergency arbitral awards. All these factors, combined, will surely make India more arbitration-friendly in the future. Suggested Readings: https://indianexpress.com/.../emergency-arbitration.../ https://www.ibanet.org/emergency-arb-india https://globalarbitrationreview.com/.../2022/article/india
0 Comments
|