INDIA Law and Practice Contributed by: Amit Mishra and Mitakshara Goyal, Svarniti Law Offices
1. General 1.1 Prevalence of Arbitration
Indian parties also frequently opt for other leading international arbitration centres, including those in Dubai, London, Zurich, Hong Kong and Paris. While domestic institutions such as the Mumbai Centre For International Arbitration (MCIA) and the Delhi Interna - tional Arbitration Centre (DIAC) are gaining traction, they have yet to achieve the same level of global rec - ognition as SIAC and other established international centres. No new arbitral institutions have been established in India over the past year. The last arbitration centre established in India was the India International Arbitra - tion Centre in 2022, indicating continued reliance on established international centres for high-value and complex disputes. 1.4 National Courts Section 11 of the Arbitration and Conciliation Act, 1996 (ACA) governs the appointment of arbitrators in India. India’s judiciary is structured into three tiers: • the Supreme Court; • High Courts; and • Subordinate Courts. In international commercial arbitration seated in India, if the parties’ agreed procedure for appointing arbitra - tors fails, the Supreme Court holds exclusive jurisdic - tion to make such appointments. All other applica - tions related to international commercial arbitration are heard by the High Courts. For domestic arbitrations, the High Courts have exclu - sive authority to appoint arbitrators when the parties’ chosen procedure fails. Other applications involving domestic arbitrations are determined by the courts based on their pecuniary jurisdiction, meaning the appropriate court is selected according to the value of the dispute.
International arbitration has gained significant popu - larity of late amongst foreign and Indian entities facing commercial disputes, considering the ever-evolving global trends in law and commerce. It is no surprise that most commercial contracts now include arbi - tration clauses, reflecting a strong shift towards this method of dispute resolution. The Indian arbitration scenario offers reverence to party autonomy, leading to a general shift towards international arbitration. If both parties are Indian and have opted for a foreign seat, the arbitration is clas - sified as a foreign-seated arbitration and not interna - tional arbitration. As a result, financially robust Indian companies often choose to resolve their disputes through international arbitration seated outside India, thereby minimising their exposure to the Indian court system. 1.2 Key Industries In recent years, the maritime and construction indus - tries in India have witnessed a marked increase in international arbitration activity. This surge can be attributed to the inherently cross-border nature of these sectors, the frequent involvement of foreign investors, and the high value and complexity of con - tracts. These factors make arbitration an appealing choice, as it offers neutrality and efficiency in resolving disputes. Moreover, the rise in foreign investment, acquisitions and joint ventures in these sectors has resulted in more complex contractual arrangements, which in turn has led to a greater number of disputes being referred to international arbitration. 1.3 Arbitration Institutions The Singapore International Arbitration Centre (SIAC) remains the most popular arbitral institution for Indi - an parties involved in international arbitration. SIAC’s strong reputation, close geographical proximity to India and proactive engagement with the Indian legal and business communities have made it the institu - tion of choice.
2. Governing Legislation 2.1 Governing Law
The ACA is the primary legislation governing interna - tional arbitration in India, and is structured into four distinct parts:
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