Choosing The Right Arbitral Seat

Law relating to arbitration in India has been evolving through various decisions of courts and amendments to the Arbitration and Conciliation Act, 1996 ("Act"). PASL Wind Solutions (P) Ltd. v. GE Power Conversion (India) (P) Ltd. (2021) 7 SCC 1 ("PASL Judgement") was one such landmark decision wherein the Supreme Court of India allowed 2 (two) Indian parties to choose a seat of arbitration outside India. In this case, an arbitration agreement was entered into between 2 (two) Indian Parties being PASL Wind Solutions Pvt. Ltd. ("PASL") and GE Power Conversion India Pvt. Ltd. ("GE"), the agreement mentioned Zurich as the seat of arbitration. Arbitration was invoked by PASL due a dispute relating to supply and warranties of certain converters. GE being the respondent in the arbitration had objected to the seat being in Zurich, however the arbitrator upheld that the seat would be Zurich and the venue would be Mumbai as per the suggestion and convenience of parties. The