Skip to content

CS Professional · Arbitration, Mediation and Conciliation · Commercial Transactions

Sunrise Textiles Ltd (Surat) and Kaveri Exports (Chennai) have an arbitration clause in their supply contract. The place of arbitration is Mumbai and the dispute is purely domestic. The contract is silent on the governing law. Which law must the tribunal apply to decide the substance of the dispute?

The tribunal must apply the substantive law in force in India. The place of arbitration is in India and the dispute is domestic, not an international commercial arbitration, so the tribunal has no freedom to pick other rules of law or to decide on fairness alone.

  1. AThe substantive law for the time being in force in IndiaCorrect
  2. BWhatever rules of law the tribunal considers appropriate in the circumstances
  3. CThe law of the place where the respondent is located, including its conflict of laws rules
  4. DPrinciples of fairness and good conscience, without reference to statute

Explanation

Where the place of arbitration is in India and the arbitration is not an international commercial arbitration, the tribunal must decide in accordance with the substantive law in force in India. The option allowing the tribunal to choose appropriate rules of law applies only to international commercial arbitration when the parties have not designated a law.

Did you get it right without looking?

One question tells you little. A timed set on Commercial Transactions shows your real accuracy, how long you take and where you lose marks.

Practise Commercial TransactionsFree diagnostic mock

More Commercial Transactions questions