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Restricting Appeals on Foreign Arbitration Awards

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In a judgment dated July 8, 2011, a two-judge bench of India's Supreme Court restricted the ability of litigants to appeal against foreign arbitration awards. 

Addressing a batch of five cases, the bench ruled (in Fuerst Day Lawson Ltd., et al v. Jindal Exports Ltd., et al) that the Indian Arbitration and Conciliation Act, 1996 (the Arbitration Act) is a 'self-contained code' covering matters relating to arbitration proceedings, the making of awards and the enforcement of awards. 

Therefore, the Court concluded, the Arbitration Act excludes appeals against the enforcement of foreign arbitration awards being made by invoking or relying on the  appellate jurisdiction conferred on India's High Courts under other laws. 

Specifically, as a result of this welcome decision, it is now clear that litigants cannot appeal against the enforcement of foreign arbitration awards by invoking the appellate jurisdiction conferred on India's High Courts under their respective Letters Patent (i.e., the charter documents that established these High Courts). 

The only grounds for appeals against orders made to enforce foreign arbitration awards are those set out in the 'self-contained code' that is the Arbitration Act.

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