Clifford Chance
Indian Supreme Court rules that two Indian companies can choose a foreign seat of arbitration
23 April 2021
The Indian Supreme Court in PASL Wind Solutions Private Limited v GE Power Conversion India Private Limited (Civil Appeal No. 1647 of 2021) has held that two companies incorporated in India can validly designate a foreign seat for arbitration of their disputes.
Previously, there had been inconsistent judicial precedent in this area, and lingering concerns that an offshore arbitration award made pursuant to an arbitration agreement between exclusively Indian parties could be susceptible to challenge in the Indian courts. This decision should put an end to such concerns and may provide renewed incentive for Indian parties (including local Indian subsidiaries of foreign investors) to opt for foreign-seated arbitration in their dispute resolution clauses.
