Hardy Exploration & Production (India), Inc. v. Government of India, Ministry of Petroleum & Natural Gas:1 A Case Comment

Abstract

The case, Hardy Exploration & Production (India), Inc. v. Government of India, Ministry of Petroleum & Natural Gas, before the United States District Court, District of Columbia (the “D.D.C”) is about dismissal of request for confirmation of an arbitral award based on public policy grounds pursuant to Article V(2)(b) of the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards (“the Convention”). The case was about enforcement of an arbitral award that ordered specific performance and payment of interests. The D.D.C. interpreted the Convention in an appropriate way that would make the award enforceable. The public policy was narrowly interpreted. The D.D.C. decided in accordance with the existing case law and gave sufficient consideration to the parties’ arguments. However, there are unanswered issues that create ambiguity. The D.D.C. did not address enforcement of specific performance against a sovereign when it acts as a commercial entity. The D.D.C. did not ignore the possibility to enforce the award but the way that the D.D.C. listed reasons contradicted its previous statement on reciprocity. The D.D.C. did not highlight the mere infringement of public policy but rather emphasized that Indian courts may decide the same against the US.

Keywords: stay of proceedings, arbitration, public policy, New York Convention