This week’s update deals with a recent decision of the Delhi High Court (“HC”), Republic of India through Ministry of Defence Vs AgustaWestland International Ltd. wherein the Court was called upon to examine the applicability of the Amendment Act of 2015, and if arbitration proceedings should be terminated owing to the allegations of fraud and corruption that were raised against a party.
Considering the facts of the case, the HC observed that the arbitral proceedings were initiated prior to commencement of the Arbitration and Conciliation (Amendment Act) of 2015 (“Amendment Act”) which introduced Section 29A of the Act and hence, the mandate of the Arbitral Tribunal did not stand terminated. It further held that the Amendment Act was prospective in nature and Section 29A of the Act was therefore, not applicable in the present case. However, with respect to the other issue, the HC agreed to further examine the validity of the arbitration agreement owing to the allegations of corruption and fraud raised against a party.
