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Delhi HC rules that Indian companies are free to choose foreign law for arbitration

  • The Delhi High Court held that international law (Dholi Spintex Pvt. Ltd vs Louis Dreyfus Corporation India Pvt. Ltd.) could be preferred by two Indian parties as the law regulating arbitration between them.

  • In a suit instituted by Dholi Spintex Pvt, the order was passed by the Single Judge Bench of Justice Mukta Gupta. Ltd and Louis Dreyfus Business India Pvt. (plaintiff) against (defendant) ltd.

  • The parties also entered into an agreement on the importation of American cotton, so that in the event of a disagreement, arbitration is subject to the rules and arbitration procedures of the International Cotton Association (ICA). Under the English Arbitration Act, 1996, arbitration under ICA bylaws is held.

  • Such an agreement was invalid, null and void, as per the appellant, and thus the arbitration instituted by the defendant was therefore null and void and deserved to be indefinitely injuncted.


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