Arbitration agreements with Indian parties

It is particularly difficult to achieve the enforcement of a foreign arbitral award in India, if the arbitration agreement has been concluded prior to the “Baltico-Judgement” of 07.09.2012. In this judgement, the Indian Supreme Court confirmed the content-related verifiability of foreign arbitral awards and the power of the Indian courts to nullify such an award. Thus, the Indian arbitration law is divided in two: The Indian courts have to interpret arbitration agreements concluded prior to the "Baltico-Judgement" differently from those stipulated after this decision. Since the Arbitration Amendment Act 2015 of 23.10.2015 is in force, the public policy (ordre public) exception regarding the annulations of arbitral awards is interpreted more restrictively. But this is only the case, if the arbitrational proceeding was initiated after this day. Therefore, it is recommended to conclude a new arbitration agreement with Indian parties. [Arbitration and Conciliation Amendment Ordinance 2015, 23.10.2015]