Case Note & Summary
The judgment concerns three arbitration applications filed under Section 11 of the Arbitration and Conciliation Act, 1996, by Aslam Ismail Khan Deshmukh against ASAP Fluids Pvt. Ltd. and Gumpro Dilling Fluids Pvt. Ltd. The common issue was whether the arbitration is an 'international commercial arbitration' under Section 2(1)(f)(i) of the Act, which defines it as an arbitration relating to disputes arising out of legal relationships considered commercial, where at least one party is habitually resident in a country other than India. The Applicant, an Indian national, had been residing in the UAE for employment since 2014 and was currently living there. The Respondents argued that the Applicant was an Indian national and thus not habitually resident abroad. The court analyzed the term 'habitually resident' and held that it refers to a person's stable and habitual residence, not merely nationality or domicile. Since the Applicant had moved to the UAE for work and had been living there for several years, he was habitually resident in the UAE. Therefore, the arbitration was an international commercial arbitration. The court appointed a sole arbitrator to resolve the disputes, as the arbitration agreement provided for arbitration and the parties could not agree on an arbitrator. The applications were allowed.
Headnote
A) Arbitration Law - International Commercial Arbitration - Habitual Residence - Section 2(1)(f)(i) of the Arbitration and Conciliation Act, 1996 - The court considered whether an Indian national residing in the UAE for employment is 'habitually resident' in a country other than India. The court held that the term 'habitually resident' refers to a person's stable and habitual residence, not merely domicile or nationality. The Applicant, who lived and worked in the UAE for several years, was found to be habitually resident there, making the arbitration international commercial arbitration. (Paras 1-10) B) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - The court appointed a sole arbitrator to adjudicate the disputes between the parties, as the arbitration agreement provided for arbitration and the parties failed to agree on an arbitrator. (Paras 11-15)
Issue of Consideration
Whether the Applicant, who is an Indian national residing in the UAE for employment, is 'habitually resident' in a country other than India under Section 2(1)(f)(i) of the Arbitration and Conciliation Act, 1996, thereby making the arbitration an international commercial arbitration.
Final Decision
The court held that the Applicant is habitually resident in the UAE, making the arbitration an international commercial arbitration. The court appointed a sole arbitrator to adjudicate the disputes between the parties. The arbitration applications were allowed.
Law Points
- Interpretation of 'habitually resident' under Section 2(1)(f)(i) of the Arbitration and Conciliation Act
- 1996
- International commercial arbitration
- Section 11 of the Arbitration and Conciliation Act
