What did Bhatia International decide?

Indian courts can grant interim measures in foreign-seated arbitrations unless the agreement expressly or impliedly excludes Indian court jurisdiction.

Does the seat outside India automatically bar Indian courts?

No. Under Bhatia (pre-BALCO), courts could still aid the arbitration if parties had not excluded Indian jurisdiction.

How did BALCO affect Bhatia?

BALCO (2012) narrowed this approach for future agreements, holding that Part I does not apply to foreign-seated arbitrations unless parties agree otherwise.

What is the takeaway for drafting?

If parties want to avoid Indian court intervention, say so clearly in the arbitration clause and related dispute-resolution terms.

What relief can courts grant under Bhatia?

Interim protection like securing assets or preserving evidence to support the arbitral process.

Bhatia International v Bulk Trading SA

When can Indian courts help a foreign-seated arbitration? A short, classroom-style explainer.

Supreme Court of India 2002 (2002) 2 SCC 395 Bench: — Arbitration Law 5–6 min read

interim relief foreign-seated arbitration Section 9 / 2(2) BALCO (2012)

Quick Summary

Core idea: Bhatia International allowed Indian courts to grant interim protection even when the seat of arbitration was outside India, unless the agreement excluded Indian court jurisdiction. Later, BALCO (2012) limited this approach for future agreements.

Case Title: Bhatia International v. Bulk Trading SA
Citation: (2002) 2 SCC 395
Holding: Indian courts may grant interim relief in foreign-seated arbitrations if jurisdiction is not excluded.

Issues

Do Indian courts have power to give interim relief in foreign-seated arbitrations when the agreement does not exclude their jurisdiction?
Does the 1996 Act allow such intervention without harming enforceability of international arbitration agreements and awards?

Rules

Indian courts can grant interim measures to support arbitration seated abroad, unless parties expressly or impliedly exclude Indian jurisdiction.
This aid is meant to preserve the subject matter and ensure the arbitral process remains effective.

Later development: BALCO (2012) prospectively held that Part I does not apply to foreign-seated arbitrations unless parties agree otherwise.

Facts (Timeline)

Simple timeline view

Contract: Indian company Bhatia International and Swiss company Bulk Trading SA entered into a sale/purchase contract.

Arbitration Clause: Disputes to be resolved under ICC Rules; seat/place of arbitration: Paris, France.

Dispute: Differences arose. Bhatia sought appointment of arbitrator and interim relief from Indian courts.

Objection: Bulk Trading challenged Indian jurisdiction, arguing the agreed foreign seat barred intervention.

Supreme Court: Considered whether Indian courts could still grant interim protection.

Timeline graphic for Bhatia International v Bulk Trading SA

Arguments

Appellant (Bhatia International)

Indian courts should grant interim protection to safeguard the arbitration.
Nothing in the clause excludes Indian court aid.

Respondent (Bulk Trading SA)

Seat is Paris; Indian courts should not intervene.
Jurisdiction lies with the seat court / tribunal mechanisms.

Judgment (Held)

Interim Aid Permitted

The Supreme Court held that Indian courts could grant interim measures in support of foreign-seated arbitrations, where the parties had not excluded Indian jurisdiction. The aim was to support, not derail, the arbitral process.

Gavel and globe representing the judgment in Bhatia International case

Ratio Decidendi

Supportive Jurisdiction: Part I remedies can be available to foreign-seated arbitrations unless excluded.
Party Autonomy: Parties may exclude Indian court aid by clear words or necessary implication.
Prospective Shift: BALCO later restricted this for future agreements.

Why It Matters

This case shaped cross-border arbitration practice in India for a decade. It offered a safety net for interim relief, influencing how contracts were drafted until BALCO re-set the rule prospectively.

Key Takeaways

Indian courts may grant interim relief for foreign seats if jurisdiction is not excluded.
Use clear drafting to include/exclude court aid.
BALCO changed the default rule for future agreements.

Mnemonic + 3-Step Hook

Mnemonic: “BHATIA = Bring Help, Absent Terms It’s Allowed.”

Say it: “If not excluded, courts can help.”
See it: An Indian safety net under a Paris arbitration.
Seal it: BALCO later narrows this for new contracts.

IRAC Outline

Issue	Power of Indian courts to give interim relief in foreign-seated arbitration where jurisdiction is not excluded.
Rule	Part I reliefs can apply unless parties have expressly or impliedly excluded Indian court jurisdiction.
Application	Agreement was seated in Paris but did not exclude Indian court aid; interim measures could be granted.
Conclusion	Interim measures permitted; later narrowed prospectively by BALCO.

Glossary

Seat of Arbitration: The legal home of the arbitration; it anchors the procedural law and court supervision.
Interim Measures: Temporary court or tribunal orders to protect assets or evidence before final award.
Exclusion Clause: Drafting that removes a court’s default power to aid arbitration.