Confusion Settled: Two Indian Parties Can Choose A Foreign Seat

On 20 April 2021, a three-judge bench of the Supreme Court of India, in PASL Wind Solutions Private Limited v. GE Power Conversion India Private Limited¹ (PASL Wind Solutions), conclusively decided the question of whether two Indian parties can choose a foreign seat of arbitration. Before the Supreme Court's decision, the High Courts were divided on this issue. For example, the Bombay High Court had taken the view that permitting two Indian parties to choose a foreign seat would violate the public policy of India.² The Delhi High Court³ and the Madhya Pradesh High Court,⁴ on the other hand, took the view that Indian parties were free to choose any seat of arbitration, even if it is outside India.