TRANSOCEAN SHIPPING AGENCY P.LTD vs BLACK SEA SHIPPING

The Supreme Court upheld the High Court's decree under the Foreign Awards (Recognition and Enforcement) Act, 1961, affirming the enforcement of a foreign arbitration award dated October 3, 1995. The Court clarified that the arbitration clause in the agreement dated August 26, 1983, mandated disputes to be resolved by the Maritime Arbitration Commission of the USSR, which remained valid despite the dissolution of the USSR and the emergence of Ukraine as a sovereign state. The Court held that the Reserve Bank of India's directive did not invalidate the obligations under the original agreements, thereby allowing the enforcement of the award.