Interim relief for foreign-seated arbitration remains available, but only on a strong factual showing of asset-risk and frustration.

Section 2(2), read with Section 2(5) of the Arbitration and Conciliation Act, 1996, was treated as inclusive so as not to exclude Part I merely because the arbitration was to be conducted outside India. The Court recognised that Section 9 can support foreign-seated arbitration by granting interim protection where necessary to preserve assets and safeguard the efficacy of the process. On the facts, however, the petitioner produced no adequate material showing likely dissipation of assets or any real risk of the award becoming ineffective, so interim injunction was refused and the proceedings ended without costs.

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Issues: Whether the Court had jurisdiction to grant interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 in aid of an ICC arbitration to be conducted outside India, and whether the petitioner had made out a case for interim injunction on the facts.

Analysis: Section 2(2) was treated as an inclusive provision and, read with Section 2(5), was held not to exclude the application of Part I merely because the place of arbitration was outside India. The Court accepted that Section 9 empowers the Court to grant interim protection in appropriate cases and that such power supports the efficacy of arbitration, particularly where assets or funds may need protection pending the award and its enforcement. On the facts, however, the petitioner failed to show adequate material that the respondent was likely to defeat the claim by dissipating assets or otherwise rendering the arbitration infructuous. The Court also found the apprehension of a unenforceable or merely paper award to be unsupported.

Conclusion: The Court held that it had jurisdiction to entertain and grant interim relief in an appropriate foreign arbitration case, but the petitioner was not entitled to such relief on the facts proved.

Final Conclusion: The interim injunction was vacated and the proceedings were brought to an end without awarding costs.

Ratio Decidendi: Part I of the Arbitration and Conciliation Act, 1996, including Section 9, may apply to appropriate foreign-seated arbitrations, but interim relief is discretionary and will issue only on a strong factual showing that protection is necessary to prevent frustration of the arbitral process.

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