Bharat Aluminium Co. v. Kaiser Aluminium (BALCO, 2012) – Foreign Arbitration Awards

The case of Bharat Aluminium Co. v. Kaiser Aluminium (popularly known as BALCO) marked a watershed moment in India’s arbitration jurisprudence. Prior to this judgment, Indian courts often intervened in arbitrations seated outside India, creating uncertainty for international investors and undermining confidence in India as an arbitration-friendly jurisdiction.

The Supreme Court in BALCO held that Part I of the Arbitration and Conciliation Act, 1996, which allowed Indian courts to grant interim reliefs and set aside awards, applies only to arbitrations seated in India. In other words, Indian courts would not interfere with foreign-seated arbitrations. This judgment aligned Indian law with the global principle of “seat-centric” arbitration and boosted confidence among international investors.

The ruling had an immediate impact on how parties drafted contracts. Businesses began to prefer neutral arbitration seats like Singapore and London, knowing that Indian courts would not exercise supervisory jurisdiction. Over time, it also encouraged India to strengthen its own arbitration framework, aiming to become a preferred global hub.

Mullick & Co. Advocates views BALCO as a turning point for India’s arbitration landscape. By limiting judicial interference, it promoted certainty and aligned India with international best practices. Our firm continues to advise corporations on structuring arbitration agreements that protect their interests while taking full advantage of the modern arbitration framework.