DISORTHO S.A.S. v. MERIL LIFE SCIENCES PVT. LTD.
Discusses principles for determining governing law in arbitration and contract interpretation, applicable across legal domains.
Court: Supreme Court of India
Citation: 2025 INSC 352
Decision Date: 18-03-2025
List of Laws
Arbitration and Conciliation Act, 1996; General Principles of Law
- Arbitration and Conciliation Act, 1996: The judgment extensively discusses Section 11(6) of the Act, which pertains to the appointment of arbitrators. The petition was filed under this section. The court affirms the applicability of the A&C Act under Section 11(6). The judgment also discusses Section 2(2) of the A&C Act, stipulating that Part I of the A&C Act applies to arbitrations seated in India. The judgment also discusses the applicability of Section 9 of the A&C Act to international commercial arbitrations, noting that Part 1 of the A&C Act and its provisions apply when the arbitration takes place in India—i.e., (i) when the seat of arbitration is in India; or (ii) when the arbitration agreement is governed Indian law.
- General Principles of Law: The judgment delves into the principles of determining the law governing an arbitration agreement, particularly in cases of trans-border arbitration. It discusses the interplay of *lex contractus*, *lex arbitri*, and *lex fori*, and how these legal systems interact when disputes arise. The judgment also discusses the "Shashoua principle" and the "Closest Connection Test" for determining the seat of arbitration. The judgment also discusses the interpretation of contracts, including how to resolve conflicts between competing or inconsistent clauses, referencing the principle that the court should read the contract as a whole, striving to give effect to all its provisions. It also discusses the principle that a clause should not be dismissed as redundant unless it is manifestly inconsistent with or repugnant to the rest of the agreement.
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