Jun 30, 2021

Indian Parties Can Choose Foreign Seat for Arbitration

In PASL Wind Solutions Private Limited v. GE Power Conversion India Private Limited,[1] the Supreme Court dealt with the issue of whether two companies incorporated in India can choose a seat of arbitration outside India. The Supreme Court held that a neutral offshore forum affords parties: (a) the opportunity to challenge the award on the grounds available in the country where the arbitral award is passed; and (b) the option to resist enforcement of a foreign award between two Indian parties on the grounds mentioned under Section 48 (Conditions for Enforcement of Foreign Award) of the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’). Accordingly, the Supreme Court upheld party autonomy as the “brooding and guiding spirit of arbitration” and held that two Indian parties can choose a foreign seat of arbitration.


[1] Civil Appeal No. 1647 of 2021.




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