{"id":7146,"date":"2025-07-29T06:50:00","date_gmt":"2025-07-29T01:20:00","guid":{"rendered":"https:\/\/lawfultalks3.selfst.art\/indian-courts-must-act-on-irksome-foreign-arbitration-abusers-hc\/"},"modified":"2026-07-21T17:31:07","modified_gmt":"2026-07-21T12:01:07","slug":"indian-courts-must-act-on-irksome-foreign-arbitration-abusers-hc","status":"publish","type":"post","link":"https:\/\/lawfultalks3.selfst.art\/indian-courts-must-act-on-irksome-foreign-arbitration-abusers-hc\/","title":{"rendered":"Indian Courts Must Act On Irksome Foreign Arbitration Abusers: HC"},"content":{"rendered":"\n<p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">In a notable ruling, the Delhi High Court has held that <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Indian civil courts possess the authority to<\/strong><\/span><\/span> <span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>grant anti-arbitration injunctions against foreign-seated arbitrations<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, particularly when such proceedings are found to be oppressive, vexatious, or contrary to the public policy of India. <\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:center\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The Court went a step further and affirmed that civil courts are duty-bound to intervene when arbitration is being exploited to foster unfairness and procedural abuse. <\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The decision was delivered by Justice Purushaindra Kumar Kaurav in the case <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:Georgia,serif\"><em>Engineering Projects (India) Limited v. MSA Global LLC (OMAN)<\/em><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">. The Court observed that the power of civil courts under <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Section 9 of the Code of Civil Procedure (CPC)<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, read with their inherent powers under <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Section 151 CPC<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, equips them to protect litigants against misuse of arbitral mechanisms.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Justice Kaurav remarked: &ldquo;Where the arbitral proceedings are shown to have been vexatious and oppressive in a manner calculated to harass the opposite party, the Civil Courts are not only empowered but also under a solemn duty to intervene. It would be wholly unjust to compel a party to submit to arbitration when the process itself is a vehicle of abuse, serving no legitimate adjudicatory purpose.&rdquo;<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">He elaborated that civil courts, being the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>guardians of civil rights<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, cannot be expected to blindly enforce arbitration clauses in cases where the process itself is being misused. According to him, relegating a party to arbitration under such circumstances would be a <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>&quot;mechanical application of statutory principles&quot;<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, which runs counter to both <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>equity<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> and the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>constitutional guarantee of access to justice<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">In exceptional scenarios, Justice Kaurav noted, the courts must assume the role of vigilant sentinels:<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">&ldquo;It is in these exceptional cases that the Civil Court must act as a sentinel on the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><em>qui vive<\/em><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">(lookout) i.e., watchful guardian, ensuring that the party alleging vexation and oppression is not left remediless. The Court must, in the exercise of its judicial conscience and upon a satisfaction of procedural abuse, extend its protective jurisdiction and prevent the continuation of proceedings that are clearly unjust, thereby upholding the rule of law and preserving the sanctity of adjudication.&rdquo;<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">These observations were made in the context of a suit filed by <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Engineering Projects India Limited (EPIL)<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, a central government-owned public sector enterprise, seeking an injunction against the continuation of an arbitration seated in <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Singapore<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> and administered by the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>International Chamber of Commerce (ICC)<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">. <\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The arbitration had been initiated by <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>MSA Global LLC<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, a defense and security systems integrator based in Oman. The dispute stemmed from a contract between the two companies concerning a border security infrastructure project at the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Oman-Yemen border<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, for which EPIL had been appointed as the main contractor.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The arbitral tribunal comprised <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Jonathan Acton Davis<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> as the presiding arbitrator, with <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Andre Yeap<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> (appointed by MSA) and <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Justice A.K. Sikri (Retd.)<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> (appointed by EPIL) as co-arbitrators. <\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">However, EPIL raised serious concerns about Yeap&rsquo;s <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>impartiality<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> after discovering his prior involvement in arbitral proceedings involving <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Manbhupinder Singh Atwal<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, who serves as MSA&rsquo;s Chairman, Managing Director, and Promoter.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">EPIL argued that Yeap&rsquo;s failure to disclose this connection violated <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Article 11 of the ICC Rules<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, thereby casting legitimate doubts on his <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>neutrality and independence<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Although EPIL challenged Yeap&rsquo;s appointment before the ICC Court, the challenge was dismissed. Thereafter, EPIL approached the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>High Court of Singapore<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> seeking judicial review of Yeap&rsquo;s continued participation. Simultaneously, it moved the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Delhi High Court<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, seeking an injunction against further arbitral proceedings.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">In its defense, MSA contended that EPIL was <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>forum shopping<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> and attempting to delay and derail the arbitration process through parallel proceedings.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">After thoroughly examining the matter, the Delhi High Court upheld its jurisdiction to entertain the suit and held that the case satisfied all three standard tests for granting an interim injunction namely, the existence of a <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>prima facie case<\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">, the <\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>balance of convenience and irreparable injury leans favourably towards <\/strong><\/span><\/span><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">EPIL the plaintiff. <\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">It was therefore determined that this is a fit case for grant of interim injunction. <\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The court concluded that, &ldquo;Accordingly, the proceedings of the Arbitral Tribunal shall stand stayed till the pendency of the suit and the parties are injuncted from participating in the same.&rdquo;<\/span><\/span><\/p>\n \n \n \n <hr \/>\n \n <p dir=\"ltr\"><span style=\"font-size:18px\">Case Details:&nbsp;&nbsp;<a href=\"https:\/\/delhihighcourt.nic.in\/app\/showlogo\/1753078268_f1c60894508fea93_596_2432025.pdf\/2025\" style=\"text-decoration-line:none\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:#1155cc\">Engineering Projects (India) ltd vs MSA Global LLC (OMAN)<\/span><\/span><\/a><\/span><\/p>\n \n \n \n <p dir=\"ltr\">&nbsp;<\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:16pt\"><span style=\"font-family:Arial,sans-serif\">.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a notable ruling, the Delhi High Court has held that Indian civil courts possess the authority to grant anti-arbitration injunctions against foreign-seated arbitrations, particularly when such proceedings are found to be oppressive, vexatious, or contrary to the public policy of India. The Court went a step further and affirmed that civil courts are duty-bound [&hellip;]<\/p>\n","protected":false},"author":90,"featured_media":9209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-7146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-high-courts"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Indian Courts Must Act On Irksome Foreign Arbitration Abusers: HC - Lawful Talks<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indian Courts Must Act On Irksome Foreign Arbitration Abusers: HC\" \/>\n<meta property=\"og:description\" content=\"In a notable ruling, the Delhi High Court has held that Indian civil courts possess the authority to grant anti-arbitration injunctions against foreign-seated arbitrations, particularly when such proceedings are found to be oppressive, vexatious, or contrary to the public policy of India. 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