Indian Supreme Court in a significant pro-arbitration decision holds that two Indian parties may validly select a foreign seat of arbitration to resolve their disputes

1 July 2021

The Indian Supreme Court in its decision in PASL Wind Solutions Private Limited v GE Power Conversion India Private Limited has unequivocally answered the vexed question of whether two Indian parties can agree on a foreign seat of arbitration in the affirmative and upheld the autonomy of contracting parties to do so without qualifications. The issue has been the topic of much debate over the years particularly given conflicting decisions of various High Courts in India.

This article discusses why the decision is significant for foreign companies doing business in India.