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 applicant, an Indian national, was residing in Dubai, UAE, at the time of entering into the arbitration agreements and at the time of filing the applications. The common question of law was the interpretation of 'habitually resident' in Section 2(1)(f)(i) of the Act, which defines an international commercial arbitration. The court examined whether the habitual residence of a party should be determined at the time of the arbitration agreement or at the time of invocation of arbitration. The court held that the relevant time is the date of the arbitration agreement, as the definition is intended to classify the arbitration at its inception. Since the applicant was habitually resident in UAE at the time of the agreements, the arbitrations were international commercial arbitrations. The court appointed a sole arbitrator to resolve the disputes, allowing the applications.
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 the applicant, an Indian national residing in UAE, was 'habitually resident' in a country other than India for the purpose of defining an international commercial arbitration. The court held that the habitual residence must be determined at the time of the arbitration agreement, not at the time of invocation. Since the applicant was residing in UAE at the time of the agreement, the arbitration was 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 disputes between the parties, as the arbitration agreement provided for arbitration and the applicant had invoked the arbitration clause. (Paras 11-15)
Issue of Consideration
Whether the expression 'habitually resident in any country other than India' in Section 2(1)(f)(i) of the Arbitration and Conciliation Act, 1996 refers to the habitual residence of the party at the time of the arbitration agreement or at the time of invocation of arbitration.
Final Decision
The court allowed the arbitration applications and appointed a sole arbitrator to adjudicate the disputes between the parties.
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 Act
