Background
Readers familiar with the Indian Arbitration and Conciliation
Act, 1996, (Act) are aware that Indian seated arbitrations are
divided into two categories viz, pure domestic arbitration and
international commercial arbitration. Broadly speaking, the
hallmark of an 'international commercial arbitration' is
where one of the parties is incorporated abroad or whose central
management and control resides outside India.
The consequence of an Indian seated arbitration being regarded
as an 'international commercial arbitration' is important
for two reasons. First, because parties have complete autonomy to
choose foreign law as governing their relationship. And secondly,
because the grounds of judicial review are narrower than that
applicable to domestic arbitration. In particular, the ground of
'patent illegality' available to challenge a domestic
award, is expressly excluded to awards rendered in an
"international commercial arbitration'.
