CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions
Sundaram Textiles Ltd (Coimbatore) and Kapoor Dyes Pvt Ltd (Ludhiana) have a domestic supply contract with arbitration seated at Chennai. Their agreement is silent on governing law. Which law must the arbitral tribunal apply to the substance of the dispute?
The tribunal must apply the substantive law for the time being in force in India. For a domestic arbitration seated in India, Section 28(1)(a) requires this, and the tribunal cannot choose other rules of law or decide on fairness alone.
- AThe substantive law for the time being in force in IndiaCorrect
- BRules of law the tribunal considers appropriate in the circumstances
- CThe law of the place where the goods were delivered
- DPrinciples of fairness and good conscience
Explanation
Where the place of arbitration is in India and the arbitration is not international commercial, the tribunal decides in accordance with the substantive law in force in India. Option B applies only to international commercial arbitration where parties made no designation.
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