Civil Courts Not Prohibited From Granting Anti-Arbitration Injunction In Foreign-Seated Arbitration If Proceedings Are Vexatious: Delhi HC

The Delhi High Court has held that "civil courts are not prohibited from granting anti-arbitration injunction in foreign-seated arbitration if proceedings are vexatious and oppressive." While India generally adopts an arbitration-friendly approach, this ruling carves out an exception. If foreign arbitration proceedings are initiated solely to harass or oppress a party, and are demonstrably vexatious, a domestic civil court can intervene to issue an anti-arbitration injunction. This provides a crucial safeguard against abusive use of arbitration clauses, especially in international disputes.