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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

Bharat Steels Ltd (Mumbai) and a Singapore buyer have an international commercial arbitration seated in Delhi. Their contract states that the dispute shall be governed by the law of Singapore, with no further words. How must the tribunal treat this designation?

The designation is read as referring directly to Singapore's substantive law, not its conflict of laws rules, unless the parties expressed otherwise. This is the rule for international commercial arbitrations seated in India under Section 28(1)(b)(ii).

  1. AAs referring to Singapore's substantive law, not its conflict of laws rulesCorrect
  2. BAs referring to Singapore's conflict of laws rules first
  3. CAs invalid, so Indian substantive law applies
  4. DAs permitting the tribunal to pick any appropriate rules of law

Explanation

For international commercial arbitration seated in India, a designation of a country's law is construed, unless otherwise expressed, as directly referring to that country's substantive law and not its conflict of laws rules. So option B is wrong.

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