In Brief
A Colombian company and an Indian company entered a distribution agreement governed by Indian law and subject to Gujarat courts' jurisdiction. Disputes arose and the Colombian party sought arbitration under Colombian institutional rules in Bogota. The Indian company challenged Indian courts' jurisdiction to appoint arbitrators, arguing the Colombian seat ousted Indian legal authority. The Supreme Court held that when a contract expressly chooses a governing law, that law generally applies to the arbitration agreement unless the arbitration becomes non-arbitrable or significant contrary factors exist. Mere venue designation in another country does not displace this presumption. Therefore, Indian law governs the arbitration agreement, Indian courts retain supervisory jurisdiction, and the Arbitration Act applies. The Court appointed an arbitrator and allowed the petition.
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