DISORTHO S.A.S. versus MERIL LIFE SCIENCES PRIVATE LIMITED

DISORTHO S.A.S. versus MERIL LIFE SCIENCES PRIVATE LIMITED

Applying the three-stage test, neither clause expressly chose the law governing the arbitration agreement; on implied choice the lex contractus (Indian law) governs the arbitration agreement because Clause 16.5 makes the contract governed by Indian law and there are no factors displacing that presumption; therefore the Arbitration and Conciliation Act, 1996 applies and Indian courts have jurisdiction under Section 11(6) to appoint an arbitrator; accordingly the petition under Section 11(6) is allowed and a sole arbitrator is appointed.

Parties
Petitioner: Disortho S.A.S.; Respondent: Meril Life Sciences Private Limited
Jurisdiction
India
Judgment Date
18 March 2025
Procedural Posture
Arbitration Petition No. 48 of 2023 / Hearing and Determination Under Section 11(6) of the Arbitration and Conciliation Act, 1996
Outcome
Arbitration petition allowed
Legal Topics
Law Governing the Arbitration Agreement, Seat and Venue of Arbitration, Lex Contractus, Lex Arbitri and Lex Fori, Applicability of the Arbitration and Conciliation Act, 1996, Appointment of Arbitrator Under Section 11(6)
International Commercial Arbitration Conflict of Laws Arbitration Law Law Governing the Arbitration Agreement Seat and Venue of Arbitration Lex Contractus, Lex Arbitri and Lex Fori Applicability of the Arbitration and Conciliation Act, 1996 Appointment of Arbitrator Under Section 11(6)

Case Brief

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Parties

Disortho S.A.S.

Petitioner

Meril Life Sciences Private Limited

Respondent

Procedural Posture

Arbitration Petition No. 48 of 2023 / Hearing and Determination Under Section 11(6) of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 What is the law governing the arbitration agreement?
  2. 2 Whether Indian courts have jurisdiction under Section 11(6) to appoint arbitrators?
  3. 3 Whether Clauses 16.5 and 18 of the Distributor Agreement designate the seat/lex arbitri or otherwise oust Indian jurisdiction?

Ratio Decidendi

Applying the three-stage test, neither clause expressly chose the law governing the arbitration agreement; on implied choice the lex contractus (Indian law) governs the arbitration agreement because Clause 16.5 makes the contract governed by Indian law and there are no factors displacing that presumption; therefore the Arbitration and Conciliation Act, 1996 applies and Indian courts have jurisdiction under Section 11(6) to appoint an arbitrator; accordingly the petition under Section 11(6) is allowed and a sole arbitrator is appointed.

Court Disposition

Arbitration petition allowed

Orders

  • Arbitration petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 is allowed and disposed of.
  • Mr. Justice S.P. Garg, retired judge of the High Court of Delhi, is appointed as the sole arbitrator.