ARTICLE · 06 JULY 2021

Party Autonomy To Choose Governing Law And Seat Of Arbitration

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Provided they have not excluded the applicability of Part I of the Act, a party can still seek interim relief protection under Part I of the Act.

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The sanctity of arbitration agreements in India has been further strengthened by the recent Supreme Court decision in Pasl Wind Solutions Pvt. Ltd. Vs. GE Power Conversion India Pvt. Ltd. (Civil Appeal No. 1647 of 2021).

The court in this case held that two Indian parties can choose a neutral forum for arbitration outside India and there is no prohibition on two Indian parties choosing a foreign law as the law governing the arbitration between them. The court further classified such arbitrations as international commercial arbitrations and allowed Part II of the Indian Arbitration and Conciliation Act ("Act") to apply to awards resulting out of such arbitrations.

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