Delhi High Court Upholds Stay on ICC Arbitration in Oman-India Border Security Dispute, Dismisses MSA Global’s Appeal
Court says arbitration tainted by procedural flaws, affirms power to issue anti-arbitration injunctions
Judgment highlights balance between minimal judicial intervention and safeguarding fairness in international disputes
By Our Legal Reporter
New Delhi: December 26, 2025:
In a significant ruling, the Delhi High Court has upheld its earlier order staying arbitration proceedings initiated by MSA Global LLC (Oman) against Engineering Projects (India) Ltd (EPIL) under the International Chamber of Commerce (ICC) rules. The court dismissed MSA Global’s appeal, finding that the arbitration was tainted by procedural impropriety and lack of impartiality.
The dispute relates to a border security project in Oman, where EPIL was engaged as a contractor. MSA Global initiated arbitration in Singapore under ICC rules, but EPIL challenged the proceedings in India, alleging bias and misconduct in the tribunal’s composition.
Background of the Case
- Parties Involved: MSA Global LLC, an Oman-based defence company, and EPIL, a Government of India enterprise.
- Dispute: Arising from contractual obligations in a border security project in Oman.
- Arbitration: MSA Global commenced ICC arbitration seated in Singapore.
- Challenge: EPIL approached the Delhi High Court seeking an injunction, arguing that the arbitral tribunal was improperly constituted and biased.
On July 25, 2025, the Delhi High Court granted an anti-arbitration injunction, restraining MSA Global from proceeding with the ICC arbitration.
Court’s Observations
The Division Bench, while dismissing MSA Global’s appeal, made several important points:
- Procedural Impropriety: One of the arbitrators failed to disclose prior involvement with a director of MSA Global, raising concerns of bias.
- Unconscionable Proceedings: The arbitration was described as “vexatious, oppressive, and inequitable.”
- Indian Courts’ Power: Despite the principle of minimal judicial intervention under the Arbitration and Conciliation Act, 1996, Indian courts retain jurisdiction to intervene when foreign-seated arbitrations are abusive.
- Balance of Principles: The court reaffirmed that while arbitral tribunals enjoy the principle of kompetenz-kompetenz (power to decide their own jurisdiction), civil courts can step in to prevent injustice.
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Wider Legal Context
The ruling is part of India’s evolving jurisprudence on anti-arbitration injunctions:
- Traditionally, Indian courts have been reluctant to interfere in foreign-seated arbitrations.
- However, exceptions exist where proceedings are tainted by fraud, bias, or procedural misconduct.
- The Delhi High Court’s decision strengthens safeguards for Indian companies engaged in international disputes.
Legal experts note that these ruling balances India’s commitment to arbitration with the need to protect parties from unfair proceedings.
Impact of the Judgment
The decision has several implications:
- For Indian Companies
- Provides reassurance that Indian courts can protect them against unfair foreign arbitrations.
- Strengthens confidence in pursuing international contracts.
- For Arbitration Practice
- Clarifies that procedural fairness is paramount.
- Arbitrators must disclose all potential conflicts of interest.
- For International Disputes
- Signals India’s willingness to intervene in foreign-seated arbitrations when justice is at stake.
- May influence how foreign companies approach contracts with Indian public sector enterprises.
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Expert Opinions
- ICLG reported that the Delhi High Court found the ICC arbitration tainted by lack of impartiality.
- JSA Law highlighted that the court described the proceedings as “blatantly vexatious, unconscionable, oppressive, and violative of fairness”.
Why This Crackdown Was Necessary
The court’s intervention was necessary to:
- Protect EPIL from biased proceedings.
- Ensure integrity of arbitration processes.
- Reaffirm India’s judicial oversight in cases of abuse.
- Send a message to international arbitral institutions about the importance of transparency and impartiality.
Conclusion
The Delhi High Court’s ruling in the MSA Global vs. EPIL case is a landmark in India’s arbitration jurisprudence. By upholding the stay on ICC arbitration and dismissing MSA Global’s appeal, the court has reinforced the principle that justice and fairness cannot be compromised, even in foreign-seated arbitrations.
The judgment strikes a careful balance: while India supports international arbitration, its courts will not hesitate to intervene when proceedings are oppressive, biased, or procedurally flawed.
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