Can Indian Court pass interim orders in International Arbitration ?

International Court of Justice, Delhi High Court, Arbitration Award

Seat of Arbitration is relevant criteria 

It is generally understood that Court where “Seat of Arbitration” is situated will alone have the power to pass interim orders u/s 9 of Arbitration Act. Meaning thereby that if Seat of Arbitration is situated outside India, then Indian Courts cannot pass any interim Orders.

Supreme Court Judgment

This issue was a debated Judicial Issue, in which Supreme Court have passed contradictory Judgments. However, Supreme Court in the Recent 3 Judges Bench Judgment of Pasl Wind Solutions Private Limited Versus GE Power Conversion India Private Limited Decide on 20-04-2021 held that even in such cases Indian Courts can pass Interim Orders, if the asset to be protected is situated in India. The impact of this Judgment, as interpreted, is such interim orders can be passed only in respect of Indian assets and not in respect of assets situated outside India.

This Judgment comes to the rescue of all the commercial litigants who have entered into arbitration agreement conferring Seat of Arbitration outside India, but the parties have assets in India. This Judgment has made the Justice for such parties easy and less expensive.


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