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CS Professional · Arbitration, Mediation and Conciliation · International Law of Arbitration

Tata-linked Kaveri Power Ltd (India) and Nordic Energy AS (Norway) agree that their contract is governed by 'the law of England', and the seat is Delhi. Nothing else is said about conflict of laws. How will the tribunal read the designation?

The designation is read as directly referring to English substantive law, not to English conflict of laws rules, unless the parties express otherwise. This construction rule applies in international commercial arbitrations seated in India, so the tribunal applies English substantive law to the dispute.

  1. AAs referring to English conflict of laws rules first
  2. BAs directly referring to the substantive law of England, not its conflict of laws rulesCorrect
  3. CAs void because the seat is in India
  4. DAs a reference to Indian law, since the seat is Delhi

Explanation

This is an international commercial arbitration seated in India. Under section 28(1)(b)(ii), a designation of the law of a country is construed, unless otherwise expressed, as referring directly to its substantive law and not its conflict of laws rules. Option A reverses this rule.

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