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Analysis
The decision of the Supreme Court in Lal Mahal case is a welcome development, especially for those seeking to enforce
foreign arbitral awards in India. This decision represents a significant step in recognizing the sanctity of foreign awards. The
overruling of Phulchand case significantly reduces the ability of Indian courts to refuse enforcement of foreign awards and
restricts the re-opening of a matter during enforcement proceedings.
While the scope of public policy defense for section 48 has been limited, patent illegality as a ground to challenge an award
under section 34 continues to be valid. Resultantly, the decision in Saw Pipes case holding patent illegality as a valid ground
for challenge, in our view, still remains valid in regard to awards made pursuant to arbitrations commenced in respect of
arbitration agreements executed prior to 6 September 2012.
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1
Civil Appeal No. 5085 of 2013 arising from SLP(c) No. 13721 of 2012
Renusagar Power Co. Limited v. General Electric Co. 1994 Supp (1) SCC 644
3
(2003) 5 SCC 705
4
Phulchand Exports Limited v O.O.O Patriot (2011) 10 SCC 300
5
Bharat Aluminium Company and Ors. v. Kaiser Aluminium Technical Service, Inc. and Ors., (2012) 9 SCC 552
6
Bhatia International v. Bulk Trading S.A. and Anr., (2002) 4 SCC 105
2
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