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CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

Sundaram Exports (Chennai) and a Singapore firm have an international commercial arbitration seated in Delhi. Their contract names no governing law. What is the tribunal's duty on applicable law?

The tribunal applies the rules of law it considers appropriate given all the circumstances surrounding the dispute. This is the fallback in an international commercial arbitration seated in India when the parties have designated no law, and it is not limited to Indian law.

  1. AIt must apply Indian substantive law automatically
  2. BIt must refer the question to the High Court for determination
  3. CIt must apply the rules of law it considers appropriate given all the circumstances surrounding the disputeCorrect
  4. DIt must apply the law of the place where the contract was signed

Explanation

For international commercial arbitration seated in India, where parties have not designated the law, the tribunal applies the rules of law it considers appropriate given all the circumstances surrounding the dispute. Automatic application of Indian law is the domestic rule, so option A is wrong.

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