In a win for party autonomy, a three-judge bench of the Supreme Court, comprising Mr Justice RF Nariman, Mr Justice BR Gavai and Mr Justice Hrishikesh Roy, has settled a longstanding and controversial question of law by holding that two entities or companies incorporated in India can opt for foreign-seated arbitration and that an award passed in such arbitration would be enforceable in India (
PASL Wind Solutions Private Limited v GE Power Conversion India Private Limited, 20 April 2021).
Facts
The parties were companies incorporated in India. In 2010 the appellant issued three purchase orders to the respondent for the supply of specified converters. Certain disputes arose between the parties in relation to the expiry of the converters warranties. The parties then entered into a settlement agreement, dated 23 December 2014, to resolve the disputes. Clause 6 of the settlement agreement contained the dispute resolution clause which stipulated that if the parties were unable to rea