Pre-award attachment in aid of arbitration

In re Sojitz Corporation v Prithvi Information Solutions Limited, a five-judge bench of the New York Supreme Court (Appellate Division) held that local assets belonging to a foreign party that has no contact with the state of New York can be attached as part of a pre-arbitration award.

Brief facts

Sojitz Corporation entered into a contract with Prithvi Information Solutions Limited (PISL) to provide telecommunications equipment to PISL in India. Sojitz is headquartered in Tokyo and PISL is at Hyderabad. Sojitz was to receive payment through an escrow account with Punjab National Bank in India, into which PISL was to deposit money according to the contract. The contract was governed by English law and provided for dispute resolution through arbitration in Singapore.

Sojitz alleged that it received only a tenth of the total alleged payment due. Sojitz also alleged that payments intended for the escrow account were being allegedly diverted.

Vivek Vashi is the mainstay of the litigation department at Bharucha & Partners.