Threshold for grant of an anti-arbitration injunction

Delhi High Court in its recent judgment in Vikram Bakshi & Anr v McDonald’s India Pvt Ltd & Ors has set a threshold to be met before grant of an anti-arbitration injunction. Although there are many decisions on grant of anti-suit injunctions, cases on anti-arbitration injunctions are fewer in number.

The court has also sought to widen the scope for interference by civil courts in international arbitrations in cases where the parties have contractually opted for a specific manner and mode of conducting arbitration.

The Bakshi case further falls under one of the contingencies laid down in section 45 of the Arbitration and Conciliation Act, 1996, and gives impetus to the wording of the section, which states that in circumstances where the arbitration agreement is found to be null and void, inoperative, or incapable of being performed, the parties may not be referred to international arbitration.

Vivek Vashi is the mainstay of the litigation team at Bharucha & Partners, where Shaheda Madraswala is an associate.