In Brief
LMJ International Ltd challenged the enforcement of foreign arbitral awards made under GAFTA rules in London regarding a rice sale dispute with Sleepwell Industries. After the High Court rejected the petitioner's objections on maintainability and enforceability, the petitioner filed further special leave petitions raising similar grounds. The Supreme Court dismissed the petitions on the ground of constructive res judicata, holding that Section 48 of the Arbitration and Conciliation Act requires simultaneous consideration of maintainability and enforceability at the threshold, not in piecemeal fashion. The Court emphasized the legislature's intent to limit judicial interference in foreign award enforcement and rejected the petitioner's conduct of circumventing the award through corporate restructuring and insolvency filing. Exemplary costs of Rs. 20 lakhs were imposed, and directions given for immediate remittance of deposited funds to the award-holder.
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