Bharat Aluminium Company vs. Kaiser Aluminium Technical Services Inc.
[2016] 1 S.C.R. 364; 2016 INSC 96
Coram: Hon’ble Justice Anil R. Dave, Hon’ble Justice Kurian Joseph & Hon’ble Justice
Amitava Roy
Forum: Hon'ble Supreme Court of India
Case No.: Civil Appeal No. 7019 of 2005 with Civil Appeal No. 3678 of 2007
Date of Decision: January 28, 2016
Conclusion

Facts and Background:
- The Bharat Aluminium Company was the Appellant.
- The Kaiser Aluminium Technical Services Inc. was the Respondent.
- On 22.04.1993, an agreement was executed between the Appellant and the Respondent to supply equipment and modernise the Appellant’s production facilities at Korba, Chhattisgarh.
- Disputes arising under the agreement were referred to arbitration in England, resulting in two arbitral awards dated 10.11.2002 and 12.11.2002, rendered in favor of the respondent.
- The Appellant’s applications under Section 34 of the Arbitration Act were dismissed by the District Judge, Bilaspur, and the appeals therefrom were dismissed by the High Court of Chhattisgarh.
- The Constitution Bench resolved conflicting views on Part I of the Arbitration and Conciliation Act of 1996, and the present case arises as its residual outcome.
Procedural Posture:
- In Bhatia International vs. Bulk Trading S.A. and Another (2002) 4 SCC 105, the Three-Judge Bench held that:
- Part I of the Arbitration Act applies to international commercial arbitrations outside India, unless the parties expressly or impliedly exclude its provisions.
- Part I applies compulsorily in arbitrations within India, and parties may deviate from its provisions only to the extent permitted by its permissive sections.
- The Constitution Bench in Bharat Aluminium Company v. Kaiser Aluminium Technical Services Inc. (2012) 9 SCC 552 overruled the decision in Bhatia International vs. Bulk Trading S.A. and Another (2002) 4 SCC 105 and held that:
- Part I of the Arbitration and Conciliation Act, 1996, applies only to arbitration in India.
- The law declared by the Bench would operate prospectively, meaning agreements executed before 06.09.2012 would continue to be governed by Bhatia International.
Main Issue:
Have the parties, by agreement, express or implied, excluded wholly or partly Part I of the Arbitration Act? (Paragraph 3)
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