[BREAKING] Calcutta HC Directs Execution Of Foreign Award Emanating From Two-Tier Arbitration

In an interesting development, a bench comprising of HMJ Sugato Majumdar of the High Court of Calcutta has directed the execution of a Foreign Award against ‘Hindustan Copper Limited’ (HCL) in India that had arisen out of a two-tier arbitration.

The matter relates to the agreement between Centrotrade Minerals and Metals Inc, an American giant, and Hindustan Copper Limited, a Government of India enterprises, for the supply of Copper Concentrate. The arbitration clause in the agreement provided for a two-tier arbitration mechanism whereby any dispute was to be settled by a Sole Arbitrator under the aegis of the Indian Council of Arbitration (ICA). In the event of any party disagreeing with the award rendered by the Sole Arbitrator, it would have a right to appeal to a Second Arbitration in London under the aegis of the International Chamber of Commerce (ICC). In 2017, a bench comprising of HMJ Madan B. Lokur, HMJ R.K. Agrawal and HMJ D.Y. Chandrachud of the Hon’ble Supreme Court of India held that two-tier arbitration agreement is valid and legally permissible in India. Later, in 2021, another bench comprising of HMJ Rohinton Fali Nariman, HMJ S. Ravindra Bhat and HMJ V. Ramasubramaniam of the apex court have a go-ahead for the execution of ICC Foreign Award passed in favour of Centrotrade. 

During the execution proceedings before the High Court of Calcutta, HCL vehemently contested the calculated sum payable and disputed the obligation to pay compound interest as awarded to Centrotrade. Despite HCL’s objections, the Calcutta High Court unequivocally dismissed its contentions and directed the execution of the ICC Foreign Award. The High Court categorically observed that, In view of the order passed by the Supreme Court of India, there is hardly any scope for this Court to rehear the enforceability issue of the Award on the ground agitated herein, which could have been raised before the Supreme Court of India. …On passing of the order that the award should (sic) enforced, issue regarding enforceability of the award reached its finality. …The foreign award dated 29/09/2021 be executed.   

Mr. S.N. Mookherjee, Sr. Advocate along with the legal team comprising of Ms. Ruby Singh Ahuja, Mr. Vishal Gehrana, Mr. Varun Khanna, Ms. Kritika Sachdeva, Advocates from Karanjawala & Co. and Advocates Mr. Aashika Saha, Raunak Das Sharma and Mr. S. Mookherjee appeared on behalf of the Centrotrade. 

Mr. Jishnu Saha, Sr. Advocate along Mr. Ishaan Saha and Mr. G. Singh, Advocates appeared on behalf of HCL.