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

Zephyr Textiles Ltd, a company incorporated in India, and Brightwave GmbH, a company incorporated in Germany, have a commercial supply contract with an arbitration clause. Which feature makes any arbitration between them an 'international commercial arbitration' under the Act?

The arbitration is international because Brightwave GmbH is a body corporate incorporated outside India. Under the Act, an arbitration over a commercial relationship is international if at least one party is foreign by nationality, incorporation, central management or being a foreign Government. Value or signing place does not matter.

  1. AThe contract is worth more than a prescribed monetary limit
  2. BAt least one party is a body corporate incorporated in a country other than IndiaCorrect
  3. CThe arbitrator is a retired Indian judge
  4. DThe contract was signed in New Delhi

Explanation

Section 2(1)(f) requires a dispute arising from a legal relationship considered commercial under Indian law, with at least one party being a foreign national or habitual resident, a foreign-incorporated body corporate, a foreign-controlled association, or a foreign Government. Brightwave GmbH is incorporated in Germany, so the test is met. Contract value, arbitrator identity and place of signing are irrelevant.

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