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PARTY AUTONOMY TO CHOOSE FOREIGN GOVERNING LAW: AN INDIAN PERSPECTIVE

Updated: 3 days ago

This post was authored by Tanish Gupta and Shubham Gandhi, third and fourth-year students of B.A. LL.B. (Hons.) respectively at Dharmashastra National Law University, Jabalpur.


Image Credits: ALRI


1. INTRODUCTION


In the noteworthy judgment of PASL Wind Solutions Private Limited v. GE Power Conversion (“PASL”), the Supreme Court (“SC”), while characterising party’s autonomy as the brooding and guiding spirit of arbitration,” affirmed the validity of the selection of a foreign seat of arbitration between two Indian nationals. This development compels arbitration enthusiasts to uncover whether Indian parties have the autonomy to select foreign law as the governing law for arbitration between them.


Recently, the Delhi High Court (“HC”), in Dholi Spintex Pvt. Ltd. v. Louis Dreyfus Company India Pvt. Ltd. (“Dholi Spintex”), upheld the choice of foreign law as the governing law of arbitration between two Indian parties. Though the parties to th