In a move that should make India significantly more attractive to foreign investors, a five-judge bench of the Supreme Court of India has reversed precedent the court set in a 2002 decision that conflicted with commonly held principles of international arbitration by effectively giving Indian courts jurisdiction over arbitration proceedings set in other countries.
At best, the 2002 ruling threw a shadow of uncertainty over arbitration agreements and internationally seated arbitrations with Indian counterparties; at worst, it painted India as an arbitration-hostile, interventionist jurisdiction.
