In a significant ruling, the Delhi High Court has restrained MSA Global LLC (Oman) from proceeding with an international arbitration under the International Chamber of Commerce (ICC), highlighting the importance of transparency and procedural integrity in cross-border dispute resolution. The Delhi High Court observed that the continuation of the arbitration in its present form raised valid concerns due to the non-disclosure of a prior professional association between a co-arbitrator and the defendant’s leadership—warranting judicial intervention to uphold the fairness and impartiality expected in such proceedings.
Engineering Projects (India) Ltd. (EPIL), a Government of India undertaking, was represented by Shardul Amarchand Mangaldas & Co., which successfully argued that the ICC arbitration, seated in Singapore, was oppressive, unconscionable, and contrary to the public policy of India.
The case sets a significant precedent in the context of India’s growing involvement in international commercial arbitrations, where questions around impartiality, transparency, and forum selection are gaining increasing judicial scrutiny.
The Hon’ble Delhi High Court, in a detailed and considered judgment by Justice Purushaindra Kumar Kaurav, reiterated that while courts ordinarily exercise restraint in arbitral matters, judicial intervention is justified when the foundational principles of natural justice are at risk. The ruling affirms the Indian judiciary’s willingness to step in against cross-border arbitral conduct that borders on abuse of process, particularly when a domestic party is left disadvantaged.
The legal team at Shardul Amarchand Mangaldas & Co. was led by Partners, Ajit Warrier; Angad Kochhar; Senior Associate, Himanshu Setia; and Associate, Vedant Kashyap.
This judgment underscores the solemn duty of arbitrators to tender a full and frank disclosure and has industry-wide implications for foreign-seated arbitrations.
