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CS Professional · Arbitration, Mediation and Conciliation · Conceptual Framework of International Commercial Arbitration

A contract between Lotus Pharma Ltd (India) and Alder Biotech Inc (incorporated in USA) provides that the place of arbitration shall be Mumbai. Which statement is correct under the Act?

Part I applies because the place of arbitration is Mumbai, in India. The arbitration is also international commercial arbitration because one party is a body corporate incorporated outside India. Place of arbitration and character of the arbitration are tested separately.

  1. APart I does not apply because one party is foreign
  2. BPart I applies because the place of arbitration is in India, and the arbitration is international commercial arbitration since one party is a foreign body corporateCorrect
  3. CPart I applies only if both parties are Indian nationals
  4. DThe arbitration is domestic since the place is in India, so section 28(1)(b) cannot apply

Explanation

Section 2(2) applies Part I where the place of arbitration is in India. Under section 2(1)(f)(ii), a body corporate incorporated outside India makes the arbitration international commercial. Hence the international rules in section 28(1)(b) apply, and the last option is wrong.

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