Share This -
x
The Supreme Court held that parties to a contract who are Indian nationals or Companies incorporated in India can choose a forum for arbitration outside India. Nothing stands in the way of party autonomy in designating a seat of arbitration outside India even when both parties happen to be Indian nationals , the bench headed by
Justice Rohinton Fali Nariman observed.
The bench was considering the question whether two companies incorporated in India can choose a forum for arbitration outside India in the case
PASL Wind Solutions Private Limited Vs. GE Power Conversion India Private Limited.
In this case, a contract was entered between two companies, both incorporated in India under the Companies Act, 1956. Clause 6 (Arbitration Clause) provided that the disputes between them shall be referred to and finally resolved by Arbitration in Zurich in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce. As the disputes
Introduction:
Recognising that an arbitration agreement between parties is an
agreement independent of the substantive contract, the Delhi High
Court in
Dholi Spintex Pvt. Ltd. v. Louis Dreyfus Company India
Pvt. Ltd.
1 has held that two Indian
parties can choose a foreign law as the law governing the
arbitration between them. The Court has also reiterated the legal
position on limited interference by Courts in international
arbitrations.
Factual Background:
Plaintiff ) had entered into a contract
with Louis Dreyfus Company India Pvt. Ltd. (the
Defendant ) for supply of 600 metric
tonnes of American imported raw cotton on May 30, 2019
(
Contract ). The Contract was entered