Dilemma for Two Indian Parties choosing Foreign Seat: Determining the Nature of Such Arbitration and Applicability of Part I under Indian Arbitration Act 1996
Short Summary The article attempts to analyse the nature of foreign seated arbitration by two Indian parties. The significance of this determination is to further determine the applicability of Section 9 of the A & C Act, 1996 in such arbitrations. INTRODUCTION The position taken by the different Courts in India over the issue of two Indian parties choosing foreign seat of arbitration has been inconsistent even after more than 20 years of enactment of Indian Arbitration and Conciliation Act, 1996 ( hereinafter referred to as “Act” ). The Bombay High Court in Aadhar Mercantile (2015) [1] held that two Indian parties cannot choose foreign seat of arbitration while interpreting the ruling of Supreme Court (hereinafter referred to as “SC”) in TDM Infrastructure (2008) [2] . It was held by the SC that two Indian parties cannot derogate from Indian substantive law although the issue whether two Indian parties can choose foreign seat was not specifically dealt in this