In Brief
Two Indian companies and an American company entered into an agreement providing for dispute resolution through international arbitration under English law. One Indian company later challenged the arbitration agreement in court, arguing that two Indian companies cannot agree to foreign arbitration and foreign governing law. The Supreme Court held that because the American company's obligations remained unperformed and undischarged under the agreement, the dispute inherently involves a foreign element. The arbitration agreement is independent from substantive contract provisions and its validity cannot be examined by looking at substantive contract terms. The courts below correctly referred the dispute to arbitration. The appeal was dismissed.
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