SEAMEC v. Oil India Ltd

Another One Bites the Dust – domestic award set aside as being perverse

In what one hopes is not a bull run, one more arbitral award has been set aside by the Supreme Court. In SEAMEC v. Oil India Ltd., a domestic award was set aside on the basis that the contractual interpretation by the Arbitral Tribunal was perverse and completely defeated the explicit wordings and purpose of the contract.

In our last blog ‘Enforcement of Foreign Awards in India – Have the brakes been applied?’, we had discussed the Supreme Court judgment in NAFED v. Alimenta S.A.[1] In that case, the Supreme Court refused to enforce a foreign award on the basis that the transaction contemplated (export of HPS groundnuts) would have violated Indian law and was therefore contrary to the public policy of India. We had noted that in the face of a plethora of judicial decisions, the Apex Court had waded into an examination of the merits of the case and the terms of the relevant contract, something which Indian courts have repeatedly held are purely within the purview of the arbitrator’s power.
Continue Reading Another One Bites the Dust – Domestic Award Set Aside as Being Perverse