Skip to content

CS Professional · Arbitration, Mediation and Conciliation · International Law of Arbitration

Kaveri Textiles Ltd (Coimbatore) and Brightway GmbH (Germany) agree to arbitrate in Mumbai. Their contract says nothing on the law governing the substance of the dispute. Under section 28, how should the tribunal decide it, given this is an international commercial arbitration with its place in India?

The tribunal applies the rules of law it considers appropriate given all the circumstances surrounding the dispute. Section 28(1)(b)(iii) provides this where the parties designate no law in an international commercial arbitration seated in India. Indian substantive law is mandatory only for domestic arbitrations.

  1. AApply the rules of law it considers appropriate given all the circumstances surrounding the disputeCorrect
  2. BApply the substantive law in force in India, as in a domestic arbitration
  3. CApply the law of Germany because the foreign party is a German company
  4. DDecide as amiable compositeur since the parties made no designation

Explanation

Where the place is in India and the arbitration is international commercial, section 28(1)(b)(iii) says that if the parties designate no law, the tribunal applies the rules of law it considers appropriate given all the circumstances. Option B applies only to arbitrations other than international commercial ones. Amiable compositeur needs express authorisation.

Did you get it right without looking?

One question tells you little. A timed set on International Law of Arbitration shows your real accuracy, how long you take and where you lose marks.

Practise International Law of ArbitrationFree diagnostic mock

More International Law of Arbitration questions