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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

Ganga Pharma Ltd and a Swiss firm agreed that their arbitration agreement is governed by Swiss law. After an award, Ganga seeks to set it aside, arguing the arbitration agreement is invalid. Under which law will the court test the validity of the arbitration agreement for this ground?

The court tests validity under Swiss law. An award can be set aside if the arbitration agreement is invalid under the law to which the parties subjected it. Only where the parties gave no indication does the law for the time being in force apply.

  1. AIndian law in all cases
  2. BThe law of the place where the award was signed
  3. CThe law to which the parties have subjected the arbitration agreement, here Swiss lawCorrect
  4. DThe law of the party making the application

Explanation

An award may be set aside if the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication, under the law for the time being in force. The parties indicated Swiss law, so that law is the test. Indian law is the fallback only when there is no indication.

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