CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions
Mumbai-based Kaveri Engineering Pvt Ltd and a Singapore supplier agree to arbitration seated in Mumbai. Their contract states that 'the laws of Singapore shall govern the contract'. It is silent on conflict of laws rules. The arbitration is an international commercial arbitration. Which law will the tribunal apply to the substance of the dispute?
The tribunal applies Singapore's substantive law. In an international commercial arbitration seated in India, a designation of a country's law is read as pointing to its substantive law and not its conflict of laws rules, unless the parties express otherwise.
- AThe substantive law of Singapore, not its conflict of laws rulesCorrect
- BThe conflict of laws rules of Singapore, which may point to Indian law
- CIndian substantive law, because the seat is in Mumbai
- DWhatever law the tribunal considers appropriate in the circumstances
Explanation
Where the seat is in India and the arbitration is international commercial, a designation of the law of a country is construed, unless otherwise expressed, as referring to that country's substantive law and not its conflict of laws rules. Option B is wrong because the contract does not expressly refer to conflict rules. Option D applies only where the parties have made no designation.
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