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

Ramesh Textiles Pvt Ltd and Suresh Dyes Pvt Ltd, both Indian companies, have a dispute under a supply contract with the arbitration seated in Pune. The contract is silent on governing law. Under section 28, the tribunal must decide the dispute in accordance with:

In a domestic arbitration seated in India, the tribunal must decide the dispute under the substantive law for the time being in force in India. The freedom to choose appropriate rules of law applies only in international commercial arbitration where parties have not designated a law.

  1. AAny rules of law the tribunal considers appropriate
  2. BThe substantive law for the time being in force in IndiaCorrect
  3. CThe law of the country with the closest connection to the goods
  4. DThe UNCITRAL Model Law rules

Explanation

Both parties are Indian, so the arbitration is not international commercial. Section 28(1)(a) requires the tribunal to decide in accordance with the substantive law for the time being in force in India. Option A is the freedom given only in international commercial arbitration lacking a designation.

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