NDLI: Pasl Wind Solutions Private Limited Vs. Ge Power Conversion India Private Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	2(1)(f) 1996: ss. 44 49 Arbitration and Conciliation Act 2(2)
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13 Referred Case 14 Referred Case 15 Referred Case 16 Referred Case 17 Referred Case 18 Referred Case 19 Referred Case 20 Referred Case 21 Referred Case 22 Referred Case 23 Referred Case 24 Referred Case 25 Referred Case 26
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Arbitration and Conciliation Act, 1996: ss. 44, 2(1) (f), 2(2), 49 – Enforcement of foreign award – Dispute between appellant and respondent, two Indian companies, wherein the respondent company, subsidiary of a French company – Execution of settlement agreement by the parties which provided for arbitration in Zurich in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce – Parties agreeing to resolve the dispute by sole arbitrator appointed by the ICC and the substantive law would be Indian law – Respondent challenged the jurisdiction on the ground that two Indian parties could not have chosen a foreign seat – However, the arbitrator held that the arbitration clause in the Settlement agreement as valid and governing law to be Swiss law because the seat of arbitration was Zurich, Switzerland, though Mumbai was designated as the venue – Final award passed in favour of respondent – Respondent filed enforcement proceedings before the High Court while appellant challenged the final award – High Court upheld the enforcement of the arbitral award – On appeal, held: Seat of the arbitration remains Zurich, Switzerland and venue of the hearing would be Mumbai, India – Closest connection test not applicable as seat was designated by the parties and by the tribunal – Part I and Part II of the Act are mutually exclusive – It cannot be said that proviso to s. 2(2) is a bridge that joined Part II to Part I – Furthermore, disputes are between two persons-two Indian companies, and the arbitration is conducted at the seat designated by the parties, i.e. Zurich, being in Switzerland, a signatory to the New York Convention – Context of s. 44 is party-neutral, having reference to the place at which the award is made – Elusive expression “public policy” appearing in s. 23 of the Contract Act is a relative concept capable of modification There is nothing in either s. 23 or s. 28 which interdicts two Indian parties from getting their disputes arbitrated at a neutral forum outside India – Effect is to be given to the party autonomy, being the brooding and guiding spirit of arbitration – Plea that s. 10 of the Commercial Courts Act would apply, and thus, impugned judgment is to be set aside, as it was without jurisdiction, cannot be accepted – Thus, two Indian parties can choose a foreign seat of arbitration to which New York Convention applies and the award passed by such forum is enforceable in India – Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 – Contract Act, 1872 – ss. 23 and 28 – Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 – s. 10.s. 44 – Foreign award – Meaning of – Necessary ingredients – Explained. s. 2(1)(f) – Expression “international commercial arbitration” – Definition of. s. 28(1)(a) – Rules applicable to substance of dispute – Interpretation of s. 28(1)(a) – Held: s. 28(1)(a) makes no reference to an arbitration being conducted between two Indian parties in a country other than India – It cannot be held to interdict two Indian parties from resolving their disputes at a neutral forum in a country other than India.
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2021 INSC 264
Petitioner	Pasl Wind Solutions Private Limited
Respondent	Ge Power Conversion India Private Limited
SCR	[2021] 4 S.C.R. 532
Judgement Date	2021-04-20
Case Number	1647

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