In 2008, Eitzen Bulk AS, a Norwegian company (Eitzen Bulk) entered into a contract of affreightment with Ashapura Minechem Limited, an Indian company (Ashapura). The contract contained a provision referring disputes to arbitration in London.

By an ex-parte arbitral award dated 26 May 2009 (Ashapura chose not to attend the arbitral proceedings), Ashapura was ordered to pay US$36 million to Eitzen Bulk.

Eitzen Bulk filed an application under section 48 of the Indian Arbitration Act (IAA) for enforcement of the foreign award against Ashapura. In the meantime, Ashapura filed an application under section 34 of the IAA to set aside the arbitral award dated 26 May 2009, on various grounds.

On 3 September 2009, the Gujarat High Court, by an order passed in Special Civil Application No.9097 of 2009, observed that when an award (including a foreign award) is challenged by an aggrieved party under section 34 of the AII, the award cannot be enforced during the pendency of the section 34 proceedings (as interpreted under section 36 of the IAA).

This decision is significant because it confirms that a recalcitrant award debtor can delay enforcement by commencing challenge proceedings.