In Brief
Two Indian companies with a dispute resolution clause providing for arbitration in Zurich, Switzerland, sought to enforce a foreign arbitral award in India. The appellant challenged the award arguing that two Indian parties cannot arbitrate outside India as it violates sections 23 and 28 of the Contract Act and that the award must be treated as domestic, not foreign. The Supreme Court held that Part I and Part II of the Arbitration Act are mutually exclusive. A foreign award is determined solely by the seat being outside India (and a New York Convention signatory), regardless of parties' nationality. Party autonomy permits two Indian companies to arbitrate abroad without violating public policy. Section 44's definition does not require international elements (foreign parties), making such awards enforceable as foreign awards under Part II.
The lawyer headnote and full judgment text are available to registered users.