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Supreme Court of India 2020-02-13 dismissed

VIJAY KARIA vs PRYSMIAN CAVI E SISTEMI SRL

Bench: 3 — Rohinton Fali Nariman, S. Ravindra Bhat, V. Ramasubramanian

In Brief

In this landmark judgment, the Supreme Court dismissed appeals challenging four arbitral awards made by a sole arbitrator in London under LCIA Rules in a dispute between shareholders of an Indian cable company (Ravin) and an Italian parent company (Prysmian). The key issue was whether the foreign awards were enforceable in India despite claims they breached natural justice, failed to decide material issues, and violated FEMA rules. The Court held that Section 48 of the Arbitration Act permits review only on very narrow grounds mirroring the New York Convention. Failure to explicitly address issues is not grounds for refusal if the award substantively decides the parties' claims. Perversity, contrary evidence, and unsupported bias allegations cannot ground refusal. The award directing share buyout at 10% discount does not violate fundamental Indian law. The Court affirmed the High Court's enforcement order and dismissed the appeals with costs.

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International Commercial Arbitration Foreign Awards Public Policy Natural Justice Joint Venture Disputes FEMA Compliance

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