DOMESTIC ARBITRATION versus INTERNATIONAL COMMERCIAL ARBITRATION:
Answer & Solution
Correct answer: B.
1. The Arbitration and Conciliation Act 1996 distinguishes DOMESTIC and INTERNATIONAL COMMERCIAL ARBITRATION.
2. Section 2(7): 'Domestic arbitration' is not separately defined but is implicit — arbitration where the place is in India and all parties are Indian.
3. Section 2(1)(f): 'INTERNATIONAL COMMERCIAL ARBITRATION' means an arbitration relating to disputes arising out of legal relationships (whether contractual or not), considered as commercial under the law in force in India, where AT LEAST ONE of the parties is:
4. (i) an individual who is a NATIONAL OF, or HABITUALLY RESIDENT IN, any country other than India; OR
5. (ii) a BODY CORPORATE which is incorporated in any country other than India; OR
6. (iii) an ASSOCIATION or BODY OF INDIVIDUALS whose central management and control is exercised in any country other than India; OR
7. (iv) the GOVERNMENT OF A FOREIGN COUNTRY.
8. The DISTINCTION is important because some procedural rules differ — e.g., Section 11(6) appointment provisions differ.
9. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Sections 2(7) and 2(1)(f)_
Related questions
In SBP & Co. v. PATEL ENGINEERING LTD (2005) 8 SCC 618, the Supreme Court held that the JUSection 28 Arbitration Act 1996 specifies APPLICABLE LAW:Section 39 Arbitration Act 1996 grants the arbitral tribunal LIEN on the:INTERIM AWARD under Arbitration Act 1996:Section 38 Arbitration Act 1996 (DEPOSITS) requires parties to:Section 21 Arbitration Act 1996 defines COMMENCEMENT OF ARBITRATION as:Section 43 Arbitration Act 1996 (LIMITATION) provides that the period of LIMITATION ACT 19Section 37 Arbitration Act 1996 lists APPEALABLE ORDERS: