Foreign Arbitral Award “shocks the conscience” of the Indian Enforcement Court
Judgment dated 24.6.2026 of the High Court of Gujarat in R/First Appeal No.3694 of 2018 of Asean LNG Trading Co Ltd now known as Petronas LNG Ltd Vs. Nishu Tours and Travels Ltd.
Gujarat HC refuses enforcement of foreign arbitral award
Gujarat HC Judgment – Parties must ensure clarity in contracts, vague or incomplete terms may result in non-enforcement of the arbitral award.
Gujarat HC Judgment – Absence of price, delivery location and payment undermines the enforceability of the foreign arbitral award.
The appellant had master agreement with the respondent for LNG sale and purchase. Malaysia LNG is the seller and Adani Energy is the buyer.
On 24.5.2007, the termination notice was sent by the appellant to the respondent for breach of the contract by the buyer.
On 25.6.2009, the arbitral award was passed by the London Court of International Arbitration.
The Single Bench held that there was no concluded contract that the respondent had agreed to buy and pay for the cargo even without knowing the price or without finalization of the port for uploading as elaborately mentioned in paras 49 to 56 of the DB judgment. As a result, the Single Bench held that the foreign arbitral award is against fundamental public policy of Indian law and it shocks the conscience of the Court.
