In Brief
Amway India appealed a Delhi High Court order appointing an arbitrator in a dispute with US-resident distributors operating a sole proprietorship in India. The Supreme Court held that since the respondents were US nationals and habitually resident outside India, the arbitration fell within Section 2(1)(f)(i) of the Arbitration and Conciliation Act, 1996, making it international commercial arbitration. The Court rejected the argument that business operations in India through a sole proprietorship removed the international character. It held the High Court lacked jurisdiction under Section 11(6) and that the matter should have been filed under Section 11(6) read with Section 11(9) before the Supreme Court. The appeal was allowed and the High Court's order was set aside.
The lawyer headnote and full judgment text are available to registered users.