In Brief
A dispute arose between shareholders in an investment holding company who entered into a Deed of Settlement in 2011 to end litigation. The arbitrator awarded liquidated damages against the respondent based on indiscreet emails sent by his wife (a non-party), forfeiting him contractual payments worth USD 3.5 million. The Supreme Court upheld the High Court's decision to set aside the award, holding that it violated the fundamental policy of Indian law by producing consequences so arbitrary and unjust that no reasonable person would reach them. The Court also clarified that the 2015 Amendment to the Arbitration Act does not apply retrospectively to Section 34 proceedings commenced before 23 October 2015.
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