Question

If one party is Indian Company and another is American company and the dispute arises out of legal relationship under contract entered between them, then such dispute falls __________.

• A. under International Commercial Arbitration within the meaning of section $2\left(f\right)$ of Arbitration and Conciliation Act, $1996$
• B. under general arbitration within the meaning of section $2\left(a\right)$ of Arbitration Act, $1940$
• C. under section $3\left(b\right)$ of Civil Procedure Code, $1908$
• D. under section $5\left(b\right)$ of General Clauses Act, $1897$

Answer 1

Answer: (A)

under International Commercial Arbitration within the meaning of section $2\left(f\right)$ of Arbitration and Conciliation Act, $1996$

According to section 2(f) of the act, “International commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the parties is-

(i) An individual who is a national of, or habitually resident in, any country other than India; or

(ii) A body corporate which is in corporate in any country other than India; or

(iii) A company or an association or a body of individuals whose central management and control is exercised in any country other than India; or

(iv). The Government of a foreign country;