Heated Debate In The Supreme Court, Big Fraud In International Arbitration? #supremecourtofindia

Ajouté : 2026-06-02

[00:00:00]No, in the meantime, there's no need matters over this. Please don't continue and don't entertain this because I'm going to point out it's an abuse of process. Not one rupee has been paid and you are blocking. So, my point is you can ask for damages. How can >> Section 37(3) was opened.

[00:00:14]>> Matters All these months he did not challenge. All these months he did not challenge. Only after the Delhi High Court judgement on the basis of that he's seeking to challenge. And my friend's facts are completely wrong.

[00:00:24]>> Yes, the arbitral tribunal was constituted.

[00:00:27]>> emergency award >> Yes.

[00:00:28]>> After that has the arbitral tribunal not been constituted?

[00:00:31]>> Yes, and it has continued the interim measure of the emergency award.

[00:00:36]It's continued.

[00:00:37]>> ask for modification of that award.

[00:00:38]>> No, they have not challenged.

[00:00:40]>> We will We will be obviously asking for it now. Yeah, we we'll be going over there. We filed an application there.

[00:00:46]>> No, in the meantime, there's no need matters over this. Please don't continue and don't entertain this because I'm going to point out it's an abuse of process. He presses this application before the Delhi High Court even though the arbitral tribunal is fully constituted and has continued the >> I'll show that order.

[00:01:01]>> Two high courts So, he takes a chance here.

[00:01:03]>> Two high courts, sorry.

[00:01:04]>> Irrespective of section 9 application >> Yes.

[00:01:06]>> the award is binding between the parties.

[00:01:10]>> No, no, that is There's no problem on that.

[00:01:13]Keep that aside. I'm only saying this SLP deserves to be dismissed. There are two concurrent findings. It's an international commercial arbitration.

[00:01:19]Both courts have Sorry.

[00:01:20]>> that finding request to be looked into.

[00:01:23]Raffles >> What is to be looked into, my lord?

[00:01:25]>> See, you are saying two concurrent findings.

[00:01:27]>> No, no, I am just >> One finding is based on Raffles.

[00:01:30]>> Raffles The Raffles judgement of the Delhi High Court does not apply.

[00:01:35]>> But babe, keep Raffles aside.

[00:01:37]>> Yes, keep Raffles aside.

[00:01:38]>> There's a time-bound program.

[00:01:40]>> Your client should undertake that you will abide by the emergency award. That's all.

[00:01:46]>> No, I am That is already there.

[00:01:48]>> If that is already there, we will not entertain this.

[00:01:50]>> Yes, please, it is already there.

[00:01:52]>> We will record your submission.

[00:01:53]>> Yes, yes, your lordship will say So, so lordship will record two things on my part.

[00:01:58]>> subject to the arbitral tribunal Yes.

[00:02:03]That's what we are asking. Yes, may I may I That's number one. And number two, your lordships will note that I have moved the arbitral tribunal for variation.

[00:02:13]Yes.

[00:02:23]But he has moved for vacation on the basis of these two impugned judgments.

[00:02:29]What is the second thing you want to be recorded? No, no. I want to just explain this. There is a solar power plant in Tamil Nadu, and there's a solar power plant in in Bihar.

[00:02:40]The deal was done on the basis of a valuation of 1st of January of January 2024.

[00:02:47]The value was fixed between the parties.

[00:02:50]Because the value was fixed as of January 2024, when they entered into an agreement in December 2024, there was a hard stop that this will agreement has to be completed by the 30th of April 2025.

[00:03:04]Hard stop.

[00:03:05]Parties agreed mutually to extend it to 31st May 2025.

[00:03:10]31st May 2025 came and went. The agreement the conditions precedent could not be fulfilled.

[00:03:17]They have not parted with one rupee so far. Not one rupee has been paid. And you are blocking. So, my point is you can ask for damages. How can No, I'm just Can I just Can I just All these months he did not challenge.

[00:03:36]All these months he did not challenge.

[00:03:38]Only after the Delhi High Court judgment on the basis of that he's seeking to challenge. And my friend's facts are completely wrong. Well, the contract says to the contrary. Contract says they are obligated.

[00:03:49]They have not taken any obligation. And yes.

[00:03:54]Yes. We are not going to So I want to answer your But he is his section 9. That's why I'm saying this must be dismissed. He got an emergency award. He got it extended by the fully constituted arbitral tribunal, but he still wanted to press his section Now it's recurrently dismissed.

[00:04:14]Yeah, just a minute now.

[00:04:21]But may I trust The first and foremost your lordship is asking me a question of fact. Does the emergency arbitral award continue today?

[00:04:29]My answer is yes, it continues today.

[00:04:32]So let's be clear on that. So even though the Delhi High Court has rejected interim application, but you must note that I have moved there for dismissal.

[00:04:44]What's the date?

[00:04:47]Procedural order two now. Don't emergency Please go to page 429 at 433. Just have a look at it. 429 at 433 it's annexure P30. Just look at it.

[00:05:24]Please just have a look at it.

[00:05:27]Yeah.

[00:05:29]Okay.

[00:05:31]Yes.

[00:05:35]Do your lordships have it?

[00:05:40]Yes, correct. I agree.

[00:05:44]And they are opposing enforcement.

[00:05:48]>> Yes.

[00:05:49]>> Either to appeal against the emergency award or to seek modification. He says he has gone to the 12 >> Yes, correct. Only after the Only after the impune judgement. What is in the meantime?

[00:06:00]>> the state for variation on 5th June.

[00:06:03]>> Now first I must answer your question.

[00:06:05]Please go to page 429 and please go directly to page 433. This is the arbitral award and this is the arbitral tribunal's procedural order 18th December 2025. Now I'm going to read page 433 clause five. The prohibitory injunction granted by the emergency arbitrator in this part The The emergency The emergency order granted on 27th August 2025 will continue in full force and effect as on an ad interim basis until further orders of this tribunal. So the tribunal has continued it.

[00:06:44]>> This is coming up on the 5th of June on my variation.

[00:06:48]So So now the That's it. That you were trying to impress on you.

[00:06:53]>> So I'm agreeing. But it can't be that you are not choosing to face your Just two things, bullets.

[00:06:58]Yeah, I'm grateful.

[00:06:59]>> What was the statement?

[00:07:00]>> time is for enforcement.

[00:07:01]>> Bullets, I recording his statement that he will abide by bullets the emergency arbitrators award continued by the tribunal.

[00:07:08]>> So he is not The tribunal rule he We record his submission that he said that it's binding into party till the variation take >> Bullets, the only ground Bullets, the only I just want to point out one thing. The only ground on which they are seeking vacation before the tribunal today is the impune judgement.

[00:07:24]Only the impune Not on merits. In the meantime he entered into an LOI with a third party.

[00:07:28]>> tribunal's wisdom whether the impune judgement is even applicable to them.

[00:07:34]>> Bullets, may only clarify. The tribunal has full powers, bullets.

[00:07:38]And bullets, I just want to point out on conduct one thing, bullets. My friend makes a submission here we will abide but on 27 November 25 is client enters into an LOI to transfer the assets to a third party.

[00:07:49]>> While the injunction is >> While the injunction of the emergency arbitrator is in place.

[00:07:57]But his statement may be recorded but Yeah.

[00:08:23]of the emergency order >> of the emergency award is also under consideration.

[00:08:28]He submits that the personal execution of the emergency award will arise after their application for variation is decided by the tribunal.

[00:08:40]We therefore dispose of >> We submit that >> does not pursue the fact that the that the emergency award is otherwise binding on the parties.

[00:08:54]>> Yes and as on date is binding yes absolutely.

[00:08:57]>> Yes binding on the parties.

[00:08:58]>> Yeah but it's my contention is that it will be obviously as your Lordships have recorded liable to be now vacated.

[00:09:05]But he's seeking vacation only on ground of the impugned judgment no other ground.

[00:09:10]He's saying we elect it. Yes.

[00:09:13]Rightfully so.

[00:09:19]on tribunal on on the date which uh uh on the date which and or otherwise But tribunal may decide without being influenced by the impugned judgment we are definitely partly autonomous this is arbitration.

[00:09:33]I'm so sorry.

[00:09:35]>> You know the learned judges who are sitting there in the tribunal, they know very well.

[00:09:39]>> Yes, exactly. But two out of three of those retired judges of this honorable court bullets >> Exactly and Justice Raja is also >> And they have Mr. Raja Justice Raja is there. Bullets, they have continued the bullets emergency award. In the meantime, they've entered into bullets an agreement to transfer to a third party and they are relying on this judgment to seek vacation.

[00:09:57]>> Section 9 >> So speaking in a fork tongue bullets >> Order Mr. Siqwal, he is at its height of persuasive impact.

[00:10:06]>> Bullets, two hard binding orders >> Yes. They they deem it irrelevant based on Raffles. On a wrong reading of UNCITRAL Model Law, unfortunately.

[00:10:14]>> Mr. Diwan does not support the order on Raffles.

[00:10:16]>> So today bullets we have a score. Today we have a cleavage of opinion bullets between Calcutta High Court and Bombay High Court versus Delhi High Court.

[00:10:23]Bullets, two High Courts take the view if there's a foreign emergency award, it should be given some way.

[00:10:28]>> delivered by this court >> Yes.

[00:10:30]>> has clearly held that residual power is there under >> Amazon >> into foreign enforcement >> Amazon >> So we we are not going into the >> That's for India seated bullets. That's for India seated. This is foreign seated.

[00:10:42]>> Let the arbitral >> The spirit is bullets that we have to abide. My lords are right.

[00:10:46]>> Again Please read Amazon with the amendment in 2020.

[00:10:50]>> My lords are right.

[00:10:51]>> Then >> My lords are right.

[00:10:52]>> If 9 applies even to foreign seated, the interpretation >> are right.

[00:10:56]>> will be the same.

[00:10:57]>> Para 40 and 41 bullets of Amazon.

[00:10:59]>> We are not going into that because Mr. Diwan admits that the does not dispute that the emergency award is binding. He only said that let the matter be >> But his client tells the tribunal, "Please rely on Section 9 judgment to vacate the emergency award." That's what his client tells the tribunal. That's the difficulty.

[00:11:16]>> Decided by the court, don't worry.

[00:11:19]>> Was uninfluenced, therefore I was asking bullets if my lords can consider.

[00:11:23]No no bullets, there's two orders over here. He took a chance.

[00:11:25]>> of India The subject contract is to be guided by laws of India.

[00:11:30]>> Laws of India bullets >> High Court >> But But on interim relief but it's the law of the seat that governs but it's on interim relief law of seat governs they have conceded that before the tribunal they also agree that Singapore law governs but it's the interim relief which the emergency but it's arbitral tribunal considers. So even but it's vacation will be governed by Singapore law on interim relief. That's why I'm saying but it's section 9 may not be relevant there.

[00:11:54]>> Argued that before the >> Yeah, we'll argue that. Grateful.

[00:11:56]>> Obliged.

[00:12:25]>> Jai Hind dosto.