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[Landmark Judgement] Sumitomo Heavy Industries Ltd. V. ONGC Ltd., (1998) 

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Landmark Judgment Law Insider (1)

Published on: 26 September 2023 at 11:00 IST

Court: Supreme Court of India

Citation: Sumitomo Heavy Industries Ltd. V. ONGC Ltd., (1998) 

Honourable Supreme Court of India has held that problems arising out of an arbitration call for the application of any one or more of the following laws—

  1. The proper law of the contract i.e. the law governing the contract which creates the substantive rights of the parties, in respect of which the dispute has arisen.
  2. The proper law of the arbitration agreement i.e. the law governing the obligation of the parties to submit the disputes to arbitration, and to honour an award.
  3. The curial law i.e. the law governing the conduct of the individual reference.

1. The proper law of the arbitration agreement governs the validity of the arbitration agreement, the question whether a dispute lies within the scope of the arbitration agreement; the validity of the notice of arbitration; the constitution of the tribunal; the question whether an award lies within the jurisdiction of the arbitrator; the formal validity of the award; the question whether the parties have been discharged from any obligation to arbitrate future disputes.

2. The curial law governs the manner in which the reference is to be conducted; the procedural powers and duties of the arbitrator; questions of evidence; the determination of the proper law of the contract.

3. The proper law of the reference governs the question whether the parties have been discharged from their obligation to continue with the reference of the individual dispute.”

Drafted By Abhijit Mishra