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2021 (11) TMI 458 - SC - Indian LawsNature of the award - award arising out of an international commercial arbitration - breach of settlement agreement - Arbitral proceedings and Court proceedings in relation to arbitral proceedings - HELD THAT:- The respondent moved a petition under Section 34 of the said Act on 24.01.2015 before the Bombay High Court as Arbitration Petition No.167/2015, while the appellant filed for execution of the award. Consequently, the respondent also filed for stay of the enforcement of the award. Interim stay was granted on 06.04.2018 and the SLP against the same was dismissed, being SLP No.27085 of 2018. The learned Single Judge of the High Court set aside the award in terms of the judgment dated 19.05.2020. The appeal filed by the respondent under Section 37 of the said Act was dismissed by the Division Bench in terms of the impugned judgment dated 20.04.2021. The High Court also granted interim protection against withdrawal of the amount specified under the Deed of Settlement for a limited period of time. In the Special Leave Petition while issuing notice on 02.08.2021, the interim arrangement by the High Court was extended and after grant of leave, arguments were concluded on 28.09.2021. Nature of the award - appellant claims that it is an award arising out of an international commercial arbitration - HELD THAT:- While the plea of the award being vitiated by patent illegality is available for an arbitral award, such an award has to be a purely domestic award, i.e. the plea of patent illegality is not available for an award which arises from international commercial arbitration post the amendment. Whether the amendment would apply in the facts of the present case? - HELD THAT:- It is not in dispute that the Section 34 proceedings commenced prior to 23.10.2015, which is the crucial date. As to when the amendment would apply is an aspect that is no longer res integra. The arbitrator’s conclusions are not in accordance with the fundamental policy of Indian law, and can thus be set aside under the pre-2015 interpretation of S. 34 of the said Act. It is also noted that clause 6 of the Deed of Settlement could not have been relied on to award liquidated damages in favour of the appellant, we agree with the observations of the Single Judge and the Division Bench in this regard. The fault cannot be found with the judgment of the learned Single Judge and the Division Bench to the extent it interferes with the award and sets aside the award - appeal dismissed.
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