In Brief
This case involved disputes between HSBC and Avitel India over a USD 60 million share investment based on alleged misrepresentations about a BBC film contract. The Supreme Court clarified that fraud allegations do not automatically prevent arbitration. Only 'serious' fraud that vitiates the arbitration clause itself or permeates the entire contract prevents referral to arbitration. Here, fraudulent misrepresentation and deceit claims—being inter-party civil matters without public policy implications—remained arbitrable. The Court upheld the foreign Singapore arbitral award awarding full damages (USD 60 million plus interest and costs) and remanded for enforcement proceedings. It also rejected the argument that pending criminal proceedings affect arbitrability, holding that civil and criminal proceedings may proceed simultaneously with different standards of proof.",
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