In Brief
An Italian company sought to enforce two international arbitration awards (partial and final) rendered by the ICC in London. The Indian respondent challenged these foreign awards under Part I of the Arbitration Act. The Supreme Court held that Part I cannot be invoked to challenge foreign awards made outside India. Since the contract explicitly stipulated that arbitration shall take place in London under ICC Rules with English law as the curial law, Indian courts lack supervisory jurisdiction. The Court emphasized the 'territorial principle': courts at the seat of arbitration alone can set aside an award. Appeals against enforcement orders are not maintainable under Section 50. The judgment reconciled BALCO with pre-BALCO awards, holding that agreements expressly stipulating a non-Indian seat or non-Indian curial law are excluded from Part I by necessary implication. The Court allowed the appeal and set aside the impugned judgment.
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