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

Meridian Pharma Ltd (India) and Lakeside Ltd (a UK company) have an arbitration seated in Mumbai. Their contract says the dispute is governed by 'the law of England'. Nothing else is said about conflict of laws. How must the tribunal read this designation?

The tribunal must treat the choice of 'the law of England' as a direct reference to English substantive law, not its conflict of laws rules, unless the parties expressed otherwise. This follows from the rule on international commercial arbitrations seated in India.

  1. AAs referring to English conflict of laws rules
  2. BAs directly referring to English substantive law, unless otherwise expressedCorrect
  3. CAs referring to Indian substantive law since the seat is Mumbai
  4. DAs allowing the tribunal to decide ex aequo et bono

Explanation

Under section 28(1)(b)(ii), a designation of the law of a country is construed, unless otherwise expressed, as directly referring to that country's substantive law and not its conflict of laws rules. Ex aequo et bono needs express authorisation under section 28(2).

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