In Bhatia International v Bulk Trading [2002] 37 SCL 434 the Supreme Court ruled that domestic courts have jurisdiction in respect of international commercial arbitration matters that take place abroad.

The court was required to interpret the applicability of Part 1 of the Indian Arbitration and Conciliation Act 1996 to international commercial arbitration in view of the fact that Part 2 (which deals with the enforcement of foreign awards) makes no provision for interim measures. The court held that the legislature did not intend for Part 1 not to apply to arbitration that takes place outside India.

Accordingly, Part 1, Section 9 & 34 of the act applies to arbitration proceedings held outside India. Parties to such proceedings may now approach the Indian courts for interim measures.

A seven Judge bench of the Hon’ble Supreme Court in the matter of SBP & Co. V/s. Patel Engineering, defining the scope of section 11 of the Act, held that the power exercised by the Chief Justice of the High Court/Chief Justice of India is a judicial power and not an administrative power.

Thus the Chief Justice /Chief Justice of India would have the right to decide the preliminary aspects such as the existence of a valid claim and existence of a valid Arbitration Agreement.