High court enforces foreign arbitral award

A judgment by Delhi High Court on 27 November 2008 in the case of Glencore Grain Rotterdam v Shivnath Rai Harnarain (India) sets out the important principles to be followed in the enforcement of foreign awards in India, in light of objections raised by the Indian party against enforcement.

The plaintiff entered into 11 contracts with the defendant for the purchase of Indian rice. These contracts were negotiated and concluded through a London-based broker, Jackson Son & Co. The broker sent to both parties their contract confirmation notes. At the end of these notes, the broker stated, “All other terms as per London Rice Brokers Association (LRBA) Contract No. 3.” According to the plaintiff, clause 11 of the LRBA contract is an arbitration clause which provides for the settlement of any dispute under the contract by arbitration of the LRBA.

Clause 14 states that the contract was executed in England and the construction, validity and performance of the contract should be governed by English Law. Disputes arose between the parties, the plaintiff invoked the arbitration clause contained in clause 11 of the LRBA contract and two arbitrators were appointed.

Krrishan Singhania is the managing partner and Ranbir Krishan is an attorney at Singhania & Co, a Mumbai-based law firm. Singhania has 20 years of experience in some of the firm’s core practice areas, which include arbitration, litigation and dispute resolution, aviation, and intellectual property.