In Bhatia International v. Bulk Trading S.A., the Indian Supreme Court ruled that the Arbitration and Conciliation Act, 1996 (“the Act”), applies to international commercial arbitrations held outside India. In its aftermath, this ruling has been misconstrued and misapplied by the Indian courts to fundamentally alter the nature of the Act and widen their jurisdiction over such international commercial arbitrations. This article critically examines the ruling, identifies the law laid down, explains the limits of its application, and offers positive suggestions for unwary foreign parties to avoid its trap.
Journal of International Arbitration