Question

In which case the Supreme Court held that Part I of the Arbitration and Conciliation Act would equally apply to international commercial arbitration held outside India, unless any or all provisions have been excluded by agreement between the parties.

• A. Bhatia International v. Bulk Trading S.A
• B. United India Ins. Co. Ltd v. Associated Transport Corpn. Ltd
• C. Hakam Singh v. Gammon (India) Ltd.
• D. Ajmera Brother's v. Suraj Naresh Kumar Jain

Hint:

For arbitration law, the timeline of judgments regarding the applicability of Part I is crucial. Remember: \textit{Bhatia International} (2002) made Part I applicable to foreign arbitrations by default. \textit{BALCO} (2012) overruled this, stating Part I is not applicable. The 2015 Amendment to the Act later clarified this position legislatively.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This question concerns the applicability of Part I of the Indian Arbitration and Conciliation Act, 1996, to arbitrations seated outside India (foreign arbitrations). Part I deals with domestic arbitrations and includes provisions for court assistance, such as granting interim measures.
Step 2: Detailed Explanation:
In the landmark case of Bhatia International v. Bulk Trading S.A. (2002), the Supreme Court of India delivered a significant judgment on this issue.
The Court held that the provisions of Part I of the Act would apply to all arbitrations, including international commercial arbitrations seated outside India, unless the parties, by express or implied agreement, had excluded its application.
This meant that Indian courts could grant interim relief (under Section 9) even in cases where the arbitration was taking place in a foreign country.
Note: The legal position established in \textit{Bhatia International} was later overruled by the Supreme Court in \textit{Bharat Aluminium Co. v. Kaiser Aluminium Technical Services Inc. (BALCO)} in 2012. The BALCO judgment held that Part I of the Act does not apply to foreign-seated arbitrations. However, for the legal position before 2012, \textit{Bhatia International} was the governing precedent.