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CS Professional · Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

Sharma Pharma Ltd, an Indian company, and Lindqvist AB, a Swedish company incorporated in Sweden, agree to arbitrate their commercial dispute with the place of arbitration in Delhi. Which statement is correct under the Act?

Part I applies since the place of arbitration is in India, and the arbitration is international commercial arbitration because one party is a body corporate incorporated outside India. Indian place does not turn it into a purely domestic arbitration.

  1. APart I applies because the place of arbitration is in India, and the arbitration is international commercial arbitration since one party is a foreign body corporateCorrect
  2. BPart I does not apply because one party is foreign
  3. CPart I applies only if both parties are Indian
  4. DThe arbitration is domestic because the place is in India, so section 2(1)(f) is irrelevant

Explanation

Section 2(2) says Part I applies where the place of arbitration is in India. Under section 2(1)(f)(ii), a body corporate incorporated outside India makes the arbitration international commercial. Place in India does not make it domestic in character; Part I governs it either way.

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