Section 28 Arbitration Act 1996 specifies APPLICABLE LAW:
Answer & Solution
Correct answer: B.
1. Section 28 Arbitration and Conciliation Act 1996 specifies APPLICABLE LAW for arbitration:
2. (1) Where the place of arbitration is in INDIA:
3. (a) In ARBITRATION OTHER THAN INTERNATIONAL COMMERCIAL ARBITRATION (i.e. DOMESTIC ARBITRATION) — the arbitral tribunal SHALL DECIDE the dispute submitted to it in accordance with the SUBSTANTIVE LAW for the time being in force in INDIA;
4. (b) In INTERNATIONAL COMMERCIAL ARBITRATION — the arbitral tribunal SHALL DECIDE the dispute in accordance with the RULES OF LAW DESIGNATED BY THE PARTIES as applicable to the substance of the dispute; or, FAILING SUCH DESIGNATION, the rules of law it considers appropriate given all the circumstances surrounding the dispute (applying conflict of laws if necessary).
5. (2) The arbitral tribunal shall decide EX AEQUO ET BONO or as AMIABLE COMPOSITEUR only if the parties have expressly authorized it to do so.
6. (3) The arbitral tribunal shall, in all cases, take into account the TERMS OF THE CONTRACT and the TRADE USAGES applicable to the transaction.
7. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 28_
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