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International arbitration weekly: India award set aside for contractual misreading; Germany rejects Achmea complaints; USA NextEra enforcement; IBA insolvency–investment report; ITA on state counsel selection

Published on: 03 October 2024

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International Arbitration

India—arbitral award vitiated at its root by misreading/misunderstanding of the basic contractual framework

The dispute in Trans Engineers India v Otsuka Chemicals centred on a tribunal issuing a ‘nil’ award on rival claims and counterclaims arising from a plant expansion at a Rajasthan project site. The bid to set aside the award succeeded, with the court emphasising that neglecting to grasp the parties’ foundational contractual framework leaves an award open to attack. The ruling underlines that arbitrators must first appreciate the parties’ relationship and contractual architecture before turning to the substance of the case. Drawing on five Supreme Court of India authorities, including the recent DMRC Ltd v Delhi Airport Metro Express, the judge reaffirmed that court intervention is justified where the tribunal’s contractual interpretation is unreasonable and disregards the contract’s specific terms...

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