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

Rahul Mehta, an Indian citizen habitually resident in Dubai, and Sundaram Traders, a partnership firm whose central management and control is in Chennai, have a commercial dispute. Which statement is correct on whether it is an international commercial arbitration under the Act?

It is an international commercial arbitration because Mr Mehta, though an Indian national, is habitually resident in a country other than India. The definition covers an individual who is either a foreign national or habitually resident abroad, so nationality alone does not defeat the test.

  1. ANo, because only a body corporate or Government of a foreign country can make it international
  2. BYes, because Mr Mehta is an individual habitually resident in a country other than IndiaCorrect
  3. CNo, because Mr Mehta is an Indian national
  4. DYes, because the dispute is commercial, regardless of the parties

Explanation

Section 2(1)(f)(i) covers an individual who is a national of, or habitually resident in, a country other than India. Habitual residence in Dubai satisfies this even though he is an Indian national. The commercial nature alone is not enough; a foreign element among the listed categories is also required.

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