01Facts
The Petitioner sought interim measures under Section 9 of the Arbitration and Conciliation Act, 1996, to secure an Award Amount of USD 269,105.08 granted via a foreign arbitral award dated March 23, 2020.
¶ 1Parallelly, the Petitioner filed Enforcement Petition No. 403 of 2025 under Sections 47 and 48 of the Act.
¶ 2The Respondent opposed the Section 9 petition, arguing that once enforcement proceedings under Part II of the Act are initiated, the court's jurisdiction under Section 9 ceases because "enforcement" and "execution" are rolled into a single composite proceeding for foreign awards.
¶ 3, 502Issues
i.1. Whether the jurisdiction of a Court under Section 9 of the Act remains available to a party after a petition for the recognition and enforcement of a foreign award under Part II has been filed.
¶ 10ii.2. Whether the filing of an enforcement petition under Part II partakes the character of execution proceedings such that it bars the Section 9 remedy.
¶ 5, 1203Law Applied
The Court applied Section 9(1) of the Act, which allows interim measures "before it is enforced in accordance with section 36".
¶ 8It further applied the Proviso to Section 2(2), which extends Section 9 to international commercial arbitrations even if the seat is outside India.
¶ 9The Court interpreted Section 49, which stipulates that a foreign award is deemed a decree only once the Court is "satisfied that the foreign award is enforceable".
¶ 17It distinguished Centrient Pharmaceuticals India Pvt. Ltd. v. Hindustan Antibiotics Ltd., noting it applied to domestic awards where execution follows the expiry of Section 34 timelines.
¶ 12It also referenced Heligo Charters Private Limited v. Aircon Feibars FZE regarding the availability of interim measures for foreign awards.
¶ 7Provisions in the judgment · 10 · Linked ones open on LawLens
Arbitration and Conciliation Act, 1996 10 provisions
Section 9Section 17Section 47Section 48Section 2Section 37Section 36Section 34Section 46Section 4904Reasoning
The Court reasoned that the statutory schemes for domestic and foreign awards differ significantly regarding when an award becomes a "decree."
Under Section 36 (Part I), a domestic award automatically becomes a decree upon the expiry of the challenge period or refusal of stay.
¶ 18, 22Conversely, under Part II (foreign awards), Section 49 requires a "positive affirmation" and "validation" by the Court to declare the award enforceable.
¶ 21-22The Court observed that while Section 9(1) refers to Section 36, the legislature intentionally omitted a similar temporal limit for Part II when amending Section 2(2) in 2015.
¶ 23, 25Consequently, the filing of a Part II petition is a plea for recognition; the award only translates into an "executable decree" once the Court is satisfied of its enforceability under Section 49.
¶ 27Therefore, until the foreign award is formally recognized as a decree, Section 9 remains available to prevent the dissipation of assets.
¶ 27-2805Holding
The Court held that the Section 9 petition is maintainable even after the filing of a Part II enforcement petition, as the foreign award has not yet been "enforced" or recognized as a decree.
¶ 27, 29The Court dismissed the jurisdictional objection and directed the Respondent to: (a) deposit the INR equivalent of USD 269,105.08 with the Registry within four weeks; (b) refrain from alienating assets pending such deposit; and (c) disclose all assets and liabilities on affidavit within two weeks.
¶ 30(a), 30(b), 30(c)Original Court PDF
Osterreichischer Lloyd Seereederei (Cyprus) Ltd. v. Victore Ships Pvt. Ltd. [2026:BHC-OS:6178]
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