Skip to content

CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

Asha Pharma Pvt Ltd (incorporated in India, with all its management and control in India) and Kavya Exports Pvt Ltd (incorporated in India) are parties to a commercial contract. The arbitration is seated in Chennai and the contract is silent on governing law. Under section 28, which law must the tribunal apply to the substance of the dispute?

The tribunal must apply the substantive law for the time being in force in India. Both parties are Indian bodies corporate, so the arbitration is not international commercial, and the free-choice or appropriate-rules approach for international commercial arbitrations does not apply.

  1. AThe rules of law the tribunal considers appropriate in the circumstances
  2. BThe substantive law for the time being in force in IndiaCorrect
  3. CThe law chosen by the arbitrator as most convenient
  4. DAny law of the parties' choice, even a foreign law, because the contract is silent

Explanation

Section 28(1)(a) provides that in an arbitration other than international commercial arbitration seated in India, the tribunal decides in accordance with the substantive law in force in India. Option A is the rule for international commercial arbitration under 28(1)(b)(iii), so it does not apply here.

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