VIJAY KARIA & ORS. versus PRYSMIAN CAVI E SISTEMI SRL & ORS.

VIJAY KARIA & ORS. versus PRYSMIAN CAVI E SISTEMI SRL & ORS.

Section 48 of the Arbitration Act must be construed narrowly and affords limited grounds to refuse enforcement of foreign awards; the phrase "was otherwise unable to present his case" is confined to denial of a fair hearing at the hearing stage and requires factors outside the party’s control to have denied a fair opportunity; rectifiable breaches of FEMA/Rules do not constitute violation of the fundamental policy of Indian law; the Supreme Court under Article 136 will not ordinarily re-open or re-weigh merits of foreign awards enforced by High Courts and will interfere only in exceptional cases of blatant disregard of Section 48 or when novel points of law require settlement; on the...

Parties
Appellants: Vijay Karia & Ors.; Respondents: Prysmian Cavi e Sistemi SRL & Ors.
Jurisdiction
India
Judgment Date
13 February 2020
Procedural Posture
Civil Appeal / Appeal Under Article 136 Against Bombay High Court Judgment Enforcing Foreign Arbitral Awards Under Section 48 of the Arbitration and Conciliation Act, 1996
Outcome
Appeals dismissed
Legal Topics
Section 48, Arbitration and Conciliation Act, 1996, Natural Justice (audi Alteram Partem), Recognition and Enforcement Under New York Convention, 1958, Scope of Appellate Jurisdiction Under Article 136, Post Award Challenges and Discretion to Enforce
Arbitration Enforcement of Foreign Arbitral Awards Public Policy Foreign Exchange (fema) Section 48, Arbitration and Conciliation Act, 1996 Natural Justice (audi Alteram Partem) Recognition and Enforcement Under New York Convention, 1958 Scope of Appellate Jurisdiction Under Article 136 +1 more

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Parties

Vijay Karia & Ors.

Appellants

Prysmian Cavi e Sistemi SRL & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal Under Article 136 Against Bombay High Court Judgment Enforcing Foreign Arbitral Awards Under Section 48 of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Scope and interpretation of Section 48(1)(b) (meaning of "was otherwise unable to present his case")
  2. 2 Scope of public policy under Section 48(2)(b) and Explanation 1 (fundamental policy of Indian law; basic notions of morality or justice)
  3. 3 Whether breaches of FEMA/Non-Debt Instrument Rules can bar enforcement as contrary to fundamental policy

Ratio Decidendi

Section 48 of the Arbitration Act must be construed narrowly and affords limited grounds to refuse enforcement of foreign awards; the phrase "was otherwise unable to present his case" is confined to denial of a fair hearing at the hearing stage and requires factors outside the party’s control to have denied a fair opportunity; rectifiable breaches of FEMA/Rules do not constitute violation of the fundamental policy of Indian law; the Supreme Court under Article 136 will not ordinarily re-open or re-weigh merits of foreign awards enforced by High Courts and will interfere only in exceptional cases of blatant disregard of Section 48 or when novel points of law require settlement; on the...

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed
  • Costs of INR 50,00,000 (fifty lakh rupees) awarded to Respondent No.1 to be paid by the Appellants within four weeks