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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

In an international commercial arbitration seated in Chennai, Nilgiri Exports Ltd and a German buyer made no designation of the law applicable to the substance of their dispute. How should the tribunal proceed?

The tribunal applies the rules of law it considers appropriate given all the circumstances surrounding the dispute. For an international commercial arbitration seated in India with no party designation, the tribunal has this discretion and is not tied to Indian law, a court reference or the claimant's law.

  1. AApply Indian substantive law automatically as the law of the seat
  2. BApply the rules of law it considers appropriate given all the circumstances surrounding the disputeCorrect
  3. CRefer the question to the court for designation of the law
  4. DApply the law of the country of the claimant

Explanation

Where the seat is in India and the arbitration is international commercial, failing a designation by the parties, the tribunal applies the rules of law it considers appropriate given all the circumstances. It is not bound to apply Indian law automatically. No court reference or claimant-based rule exists in the provision.

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