Originally from Dispute Resolution Journal

This article examines the highlights of a recent decision of the Bombay High Court upholding an arbitration award in favor of an American company against an Indian company and directing that it be enforced. Since the amount of the award is relatively large, and because American companies, troubled by the Union Carbide situation, have shown concern about how fair-minded Indian courts can be with respect to foreign businesses, the judgment is noteworthy.

The author discusses some of the issues, both procedural and substantive, which arose in the case, including the emphatic upholding by the Indian court of the requirement in the 1958 New York Convention that the award be binding rather than final in the country in which it was made; the enforcement of the pre-award damages calculated in terms of annually compounded interest; and the awarding of substantial costs to the American party.