Indian Parties Can Choose Foreign Seat for Arbitration

Our undertakings for long-term impact are an organic extension of our purpose.

They are to employ our deep knowledge of the law beyond the business, the transaction, the deal. To use the opportunities and skills we possess, to reflect on the culture we’re creating. Individually and collectively, these are our efforts to help shape the thinking of our future generations, and arm them with strategies for true, sustainable growth.

Jun 30, 2021

Indian Parties Can Choose Foreign Seat for Arbitration

In PASL Wind Solutions Private Limited v. GE Power Conversion India Private Limited,^[1] the Supreme Court dealt with the issue of whether two companies incorporated in India can choose a seat of arbitration outside India. The Supreme Court held that a neutral offshore forum affords parties: (a) the opportunity to challenge the award on the grounds available in the country where the arbitral award is passed; and (b) the option to resist enforcement of a foreign award between two Indian parties on the grounds mentioned under Section 48 (Conditions for Enforcement of Foreign Award) of the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’). Accordingly, the Supreme Court upheld party autonomy as the “brooding and guiding spirit of arbitration” and held that two Indian parties can choose a foreign seat of arbitration.

[1] Civil Appeal No. 1647 of 2021.

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.