Facts
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.
Source reference: para. 1Parallelly, the Petitioner filed Enforcement Petition No. 403 of 2025 under Sections 47 and 48 of the Act.
Source reference: para. 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.
Source reference: para. 3, 5Issues
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.
Source reference: para. 102. Whether the filing of an enforcement petition under Part II partakes the character of execution proceedings such that it bars the Section 9 remedy.
Source reference: para. 5, 12Law Applied
The Court applied Section 9(1) of the Act, which allows interim measures "before it is enforced in accordance with section 36".
Source reference: para. 8It further applied the Proviso to Section 2(2), which extends Section 9 to international commercial arbitrations even if the seat is outside India.
Source reference: para. 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".
Source reference: para. 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.
Source reference: para. 12It also referenced Heligo Charters Private Limited v. Aircon Feibars FZE regarding the availability of interim measures for foreign awards.
Source reference: para. 7Reasoning
The Court reasoned that the statutory schemes for domestic and foreign awards differ significantly regarding when an award becomes a "decree."
Source reference: no citationUnder Section 36 (Part I), a domestic award automatically becomes a decree upon the expiry of the challenge period or refusal of stay.
Source reference: para. 18, 22Conversely, under Part II (foreign awards), Section 49 requires a "positive affirmation" and "validation" by the Court to declare the award enforceable.
Source reference: para. 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.
Source reference: para. 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.
Source reference: para. 27Therefore, until the foreign award is formally recognized as a decree, Section 9 remains available to prevent the dissipation of assets.
Source reference: para. 27-28Holding
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.
The 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.
Source reference: para. 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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