In a significant ruling on March 4th, the Supreme Court permitted the enforcement of a foreign arbitral award. The court emphasized that when assessing arbitral bias, it should strive to adhere to international standards rather than domestic ones. The court stressed that refusal to enforce a foreign arbitral award on the grounds of bias should be an exceptional measure.
The decision underscores the court’s commitment to aligning with international best practices in arbitration. By advocating for adherence to global standards, the court aims to enhance the credibility and reliability of the Indian arbitration framework.
The court’s stance reflects a broader trend towards harmonizing international arbitration practices. It recognizes the importance of ensuring a level playing field for parties involved in cross-border disputes, promoting fairness and impartiality in the arbitration process.
The court’s emphasis on following international standards also signals India’s commitment to the principles of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The convention, which India is a signatory to, seeks to facilitate the recognition and enforcement of foreign arbitral awards in signatory countries.
Overall, the Supreme Court’s judgment reaffirms India’s commitment to fostering a conducive environment for international arbitration. By endorsing international standards for determining bias in arbitral awards, the court aims to enhance the credibility and integrity of the arbitration process, thereby bolstering India’s reputation as a favorable destination for resolving international commercial disputes through arbitration.eme
