What are India’s options for the future?
Posted: Sat Jul 12, 2025 5:37 am
It is quite common to seek the intervention of the courts in the enforcement of arbitral awards against foreign states.
Last month, in a case filed by two Indian private companies for the enforcement of arbitral awards in their favor, the Delhi High Court ordered the embassies of Afghanistan and Ethiopia to file affidavits disclosing the assets they own and hold in India.
While KLA Const Technologies sought to recover approximately Rs 1.72 crore from the Islamic Republic of Afghanistan under an arbitration award in which the Supreme Court appointed the sole arbitrator, the other Indian company, Matrix Global Private Limited , sought to recover Rs 7.60 crore from Ethiopia.
Judge JR Midha’s decision considered whether a “foreign state can claim phone number library sovereign immunity from enforcement of an arbitration award arising from a commercial transaction?”
“A foreign state has no sovereign immunity against an arbitration award resulting from a commercial transaction. The subsequent conclusion of an arbitration agreement constitutes a waiver of sovereign immunity. The respondent’s agreement to arbitrate the disputes would operate as a waiver of said requirement. When a foreign state enters into an arbitration agreement with an Indian entity, there is an implied waiver of sovereign immunity, otherwise available to that foreign state, against enforcement of an arbitration award, â€the High Court said. .
“In fact, the underlying rationale for international commercial arbitration is to facilitate international trade and investment by providing a stable, predictable and efficient legal framework within which business activities can be conducted to promote the fluidity of international transactions. , and removing the uncertainties associated with long and costly litigation. Otherwise, the very edifice of the international arbitration ecosystem would collapse, â€he added.Biden announces choice of ambassadors for France, India, Chile and Bangladesh
Last month, in a case filed by two Indian private companies for the enforcement of arbitral awards in their favor, the Delhi High Court ordered the embassies of Afghanistan and Ethiopia to file affidavits disclosing the assets they own and hold in India.
While KLA Const Technologies sought to recover approximately Rs 1.72 crore from the Islamic Republic of Afghanistan under an arbitration award in which the Supreme Court appointed the sole arbitrator, the other Indian company, Matrix Global Private Limited , sought to recover Rs 7.60 crore from Ethiopia.
Judge JR Midha’s decision considered whether a “foreign state can claim phone number library sovereign immunity from enforcement of an arbitration award arising from a commercial transaction?”
“A foreign state has no sovereign immunity against an arbitration award resulting from a commercial transaction. The subsequent conclusion of an arbitration agreement constitutes a waiver of sovereign immunity. The respondent’s agreement to arbitrate the disputes would operate as a waiver of said requirement. When a foreign state enters into an arbitration agreement with an Indian entity, there is an implied waiver of sovereign immunity, otherwise available to that foreign state, against enforcement of an arbitration award, â€the High Court said. .
“In fact, the underlying rationale for international commercial arbitration is to facilitate international trade and investment by providing a stable, predictable and efficient legal framework within which business activities can be conducted to promote the fluidity of international transactions. , and removing the uncertainties associated with long and costly litigation. Otherwise, the very edifice of the international arbitration ecosystem would collapse, â€he added.Biden announces choice of ambassadors for France, India, Chile and Bangladesh