INDIA 17 February 2022 Aircon Beibars

High Court, Bombay, 17 February 2022, Commercial Arbitration Petition 1130 of 2019

(Aircon Beibars FZE v. Heligo Charters Private Limited)

17 - 02 - 2022

INDIA 17 February 2022 Aircon Beibars

Jurisdiction India
Summary

Heligo failed to pay under an agreement with Aircon Beibars for leasing a Bell helicopter, and again under the settlement agreement entered into by the parties in respect of the outstanding sum. The High Court granted enforcement of the SIAC award obtained by Aircon Beibars in the ensuing dispute, denying the public policy arguments raised by Heligo. The Court explained that the public policy exception must be narrowly viewed, refusing enforcement only to an award which shocks the conscience of the court, and that the enforcement court may not review the merits of the arbitral decision. In the present case, the objections raised by Heligo – that the award violated public policy because it awarded helicopter’s price under the lease agreement, which had been terminated by the settlement agreement, and because it was unreasoned to the extent it related to amounts awarded under the settlement agreement – would require the Court to impermissibly re-examine the merits of the case. The Court also found that Heligo had failed to prove its claim that enforcement of the SIAC award would lead to unjust enrichment of Aircon Beibars, and thus to a violation of the public policy of India.

Related topics
502

The court discusses the principle that the merits of the award may not be reviewed and that the court may only carry out a limited review of the award to ascertain grounds for refusal.

No re-examination of the merits of the arbitral award
518

Public policy: The court discusses the meaning of (international as compared to domestic) public policy, generally defined as the basic notions of morality and justice of the enforcement State.

Paragraph 2 - Distinction domestic-international public policy
522

Public policy: The court discusses the consequences of the lack of reasons in the award on its recognition and enforcement.

Lack of reasons in award
524

Public policy: The court discusses the effect of other alleged violations of public policy on the recognition and enforcement of an arbitral award, such as contradictory reasons, manifest disregard of the law (US), etc.

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INDIA 17 February 2022 Aircon Beibars