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2019 (2) TMI 1288 - SC - Indian LawsArbitration proceedings - petitioner refused to participate in the arbitration proceedings - Enforceability of a foreign award - sale of Non Basmati Parboiled Rice, Thailand origin - whether it was open to the petitioner to raise grounds regarding enforceability of the foreign awards despite the judgment of the High Court in SLEEPWELL INDUSTRIES CO. LTD. VERSUS LMJ INTERNATIONAL LTD. [2014 (12) TMI 1339 - CALCUTTA HIGH COURT] rejecting the objections in the context of maintainability of the execution petition and which decision had attained finality consequent to rejection of the special leave petitions by this Court and including the review petition by the High Court? Held that:- The grounds urged by the petitioner in the earlier round regarding the maintainability of the execution case could not have been considered in isolation and de hors the issue of enforceability of the subject foreign awards. For, the same was intrinsically linked to the question of enforceability of the subject foreign awards. In any case, all contentions available to the petitioner in that regard could and ought to have been raised specifically and, if raised, could have been examined by the Court at that stage itself. We are of the considered opinion that the scheme of Section 48 of the Act does not envisage piecemeal consideration of the issue of maintainability of the execution case concerning the foreign awards, in the first place; and then the issue of enforceability thereof. Whereas, keeping in mind the legislative intent of speedy disposal of arbitration proceedings and limited interference by the courts, the Court is expected to consider both these aspects simultaneously at the threshold. Taking any other view would result in encouraging successive and multiple round of proceedings for the execution of foreign awards. We cannot countenance such a situation keeping in mind the avowed object of the Arbitration and Conciliation Act, 1996, in particular, while dealing with the enforcement of foreign awards. For, the scope of interference has been consciously constricted by the legislature in relation to the execution of foreign awards. Therefore, the subject application filed by the petitioner deserves to be rejected, being barred by constructive res judicata, as has been justly observed by the High Court in the impugned judgment. The special leave petitions are dismissed with exemplary costs, quantified at an aggregate amount of ₹ 20,00,000/-.
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