Indian Courts Told To Hasten Global Disputes

The Supreme Court has emphasised that the Indian courts should not pass stay orders in international arbitration matters and then forget them for years.

In a dispute between National Fertilisers Ltd and Valvue Armaturen Beratung GMBH, the Delhi High Court passed a stay order in favour of the Indian company in 1991. The stay is still in operation. Even after seven years, the interim stay has not been re-examined. Therefore, the foreign company moved the Supreme Court pressing for vacation of the stay and a ruling on the powers of the domestic courts in international arbitration matters.

The division bench consisting of Justice A S Anand and Justice D P Wadhwa stated that such issues must be disposed of "with utmost despatch."

 

They asked the high court to take up case and dispose it of by December 31 this year. Recalling its earlier judgement in Dresser Rand case of 1995, the court said that "it is not proper to let loose and keep at large orders of injunction of this kind for unduly long periods. It is inconsistent with the principles governing international arbitration." At any rate, the court must ensure that the matters are dealt with and disposed of with utmost despatch, the court said.