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CS Professional · Arbitration, Mediation and Conciliation · Conceptual Framework of International Commercial Arbitration

Sunrise Exports Pvt Ltd (Pune) and Al Noor Trading FZE (a body corporate incorporated in Dubai) have an arbitration seated in Delhi. Their agreement names no law applicable to the substance of the dispute. What does Section 28 require of the tribunal?

The tribunal applies the rules of law it considers appropriate given all the circumstances surrounding the dispute. Since the arbitration is international commercial and the parties designated no law, Section 28 gives the tribunal this discretion rather than fixing Indian or foreign law.

  1. AApply Indian substantive law necessarily, because the seat is in India
  2. BApply the law of Dubai, as the foreign party's home law
  3. CApply the rules of law it considers appropriate given all the circumstances surrounding the disputeCorrect
  4. DRefer the question of governing law to the High Court

Explanation

This is an international commercial arbitration (one party is a body corporate incorporated outside India) with its place in India. Where the parties have designated no law, the tribunal applies the rules of law it considers appropriate given all the circumstances. It is not compelled to apply Indian law or the foreign party's law.

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