In Brief
Eitzen Bulk, a Danish shipowner, and Ashapura Minechem, an Indian charterer, entered into a charter party with an arbitration clause requiring disputes be settled in London under English law. Disputes arose and a London arbitrator awarded Eitzen over USD 36 million. Ashapura challenged the award in Indian courts under Section 34 of the Arbitration Act. The Supreme Court held that where parties expressly choose a foreign seat of arbitration and foreign governing law, Part I of the Indian Arbitration Act is excluded. Indian courts lack jurisdiction to entertain challenges to such foreign awards. The award must be challenged only in the courts of the arbitration seat (England). The Bombay High Court's enforcement order under Part II was upheld and Gujarat High Court's jurisdiction decision was reversed.
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