In Taisei, a Japanese company subcontracted a highway project to a Pakistani company. The subcontract provided for International Chamber of Commerce (ICC) arbitration in Singapore under Pakistani law. The ICC tribunal rendered award in 2011. The Pakistani company challenged enforcement while the Japanese company sought recognition in two different High Courts. Conflicting High Court rulings led to an appeal before Supreme Court
Held: Supreme Court reinforced pro-enforcement bias consistent with the New York Convention, limiting refusal grounds and placing burden on the resisting party. Courts must avoid interfering with international arbitral awards.
Court’s Observations:
“Arbitration embodies autonomy and voluntariness, respecting parties’ freedom to design a process that best suits their needs.”
“Courts are no longer competitors to arbitration but essential partners in ensuring the effectiveness and integrity of the process.”
“The role of courts in arbitration has evolved with a trend towards minimal interference – supporting, not supplanting, the arbitral process.”
“International commercial arbitration plays a crucial role … neutrality, expeditiousness, and efficiency make it the preferred alternative to litigation.”