Union of India v. Hardy Exploration & Production (India), Inc

ARBITRATION AND CONCILIATION ACT, 1996

--Jurisdiction--Appeals against award passed by Arbitral TribunalEntertainability of application under section 34----Whether Indian courts had jurisdiction to entertain application under section 34 challenging the legality of award rendered in international commercial arbitration proceedings, the matter was referred by Supreme Court to its Larger Bench for consideration.--Union of India and the foreign company entered into an international commercial transaction. However, disputes arose between them. Therefore, matter was referred to arbitrator and an award was passed in favour of the foreign company. Union of India filed an application under section 34 challenging the legality, validity and correctness of the award, but Single Judge dismissed the application on the ground that Indian courts had no jurisdiction to entertain the application challenging the legality of award rendered in international commercial arbitration proceedings. Being aggrieved, Union of India filed an appeal under section 37(2) against the order, but the same was dismissed by High Court. Hence, appeal by special leave was filed before Supreme Court. Held: In view of the issues involved in the appeal, it was a fit case to exercise power under order vi, rule 2 of the Supreme Court Rules, 2013 and refer the matter to be dealt with by the appropriate Larger Bench.