Skip to content

CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

A foreign company and an Indian firm have a commercial dispute and arbitrate in Singapore. Part I of the Act applies where the place of arbitration is in India. Before the Singapore tribunal is fully constituted, the Indian firm is about to dispose of assets in India. Absent a contrary agreement, which statement is correct under section 2(2) proviso?

Section 9 applies, because the proviso to section 2(2) extends it, along with sections 27 and 37(1)(a) and (3), to international commercial arbitration seated abroad, subject to contrary agreement, where the award is enforceable under Part II.

  1. APart I, including section 9, cannot apply at all since the seat is outside India
  2. BSection 9 applies to this international commercial arbitration even though the seat is outside India, where the award is enforceable under Part IICorrect
  3. COnly section 9 and no other provision applies, and it applies even if the parties agreed otherwise
  4. DSection 9 applies only if the arbitration is domestic

Explanation

The proviso to section 2(2) says that, subject to an agreement to the contrary, sections 9, 27 and section 37(1)(a) and (3) also apply to international commercial arbitration seated outside India where the award is enforceable under Part II. Option C is wrong as it ignores the 'subject to agreement to the contrary' qualifier and wrongly says only section 9 applies.

Did you get it right without looking?

One question tells you little. A timed set on Commercial Transactions shows your real accuracy, how long you take and where you lose marks.

Practise Commercial TransactionsFree diagnostic mock

More Commercial Transactions questions