Clifford Chance
Two recent pro-arbitration cases from Indian courts continue the judicial trend towards recognition of arbitral independence
21 February 2014
In two pro-arbitration decisions issued only days apart, the Bombay High Court in HSBC PI Holdings (Mauritius) Ltd v Avitel Post Studioz Ltd and others and the Supreme Court of India in World Sport Group (Mauritius) Ltd v MSM Satellite (Singapore) Ltd , both held that issues of fraud should properly be dealt with by the arbitral tribunal in accordance with the arbitration agreements entered into between the parties, and not by the courts, departing from an earlier controversial line of authority from India which had held otherwise.
Following the groundwork laid by the Supreme Court of India in cases such as Bharat Aluminum Co Ltd v Kaiser Aluminum and Shri Lal Mahal v Progetto Grano Spa , the two cases discussed in this briefing show a developing judicial maturity on the part of the Indian courts not to interfere with the international arbitral process and to be willing to uphold valid international arbitration agreements between parties.
