When your contract is with a party in another country, a dispute raises extra questions. Which country's courts have a say? Which law applies? Where will hearings happen, and in which language? Will an award be enforceable where the other side's assets are? International commercial arbitration exists to answer these questions in advance, through the arbitration clause.
This page is for Indian companies dealing with foreign buyers, suppliers, investors and partners, and for foreign companies with disputes against Indian parties. Under Indian law, an arbitration is an "international commercial arbitration" when at least one party is a foreign national or habitual resident, a company incorporated abroad, or a body whose central management is exercised abroad, and the dispute is commercial.
The seat chosen in the clause decides most things. If the seat is in India, the Indian Act's Part I applies, but with some differences for international cases. If the seat is abroad, the foreign law of the seat governs the process, and Indian courts come in mainly for interim relief and enforcement.
हिंदी में सारांश
जब किसी विदेशी पक्ष के साथ अनुबंध में विवाद होता है, तो सवाल उठते हैं कि किस देश की अदालतें शामिल होंगी, कौन-सा क़ानून लागू होगा और अवॉर्ड कहाँ लागू होगा। अंतरराष्ट्रीय वाणिज्यिक आर्बिट्रेशन इन सवालों का जवाब आर्बिट्रेशन क्लॉज़ के ज़रिए पहले से तय करता है। भारतीय क़ानून में, अगर कम से कम एक पक्ष विदेशी है, तो यह अंतरराष्ट्रीय वाणिज्यिक आर्बिट्रेशन है। अगर सीट भारत में है, तो सुप्रीम कोर्ट आर्बिट्रेटर नियुक्त करता है। अगर सीट विदेश में है, तो प्रक्रिया उस देश के क़ानून से चलती है और भारतीय अदालतें मुख्य रूप से अंतरिम राहत और अवॉर्ड लागू करने में मदद करती हैं।
Is this your situation?
- You are an Indian exporter or importer in a dispute with a foreign buyer or supplier
- A foreign investor or joint venture partner has a dispute with you
- Your contract says disputes go to SIAC, ICC, LCIA or another foreign institution
- You are a foreign company with a dispute against an Indian company
- You are an NRI with a business dispute in India
- You need interim relief in India for an arbitration seated abroad
- You need to enforce a foreign award against assets in India
Key points about international arbitration involving India
The seat decides the law of the process
The seat's courts supervise the arbitration and hear challenges to the award. Choosing Singapore means Singapore courts; choosing New Delhi means Indian courts.
Arbitrators appointed by the Supreme Court
For India-seated international arbitrations, if the parties cannot agree, the Supreme Court appoints under Section 11.
No patent illegality challenge
Section 34(2A) patent illegality applies only to domestic awards. India-seated international awards can be challenged only on the narrower grounds.
Time limit is a target
Under Section 29A, the 12-month limit is only an endeavour for international arbitrations, not mandatory.
Indian courts help foreign-seated cases
The proviso to Section 2(2) lets Indian courts grant interim relief, assist in taking evidence and hear appeals on those orders for foreign-seated arbitrations, unless the parties exclude it.
Enforcement in India
Foreign awards from New York Convention countries notified by India are enforced through Sections 47 to 49.
Choosing between an Indian seat and a foreign seat
For years, many Indian companies and their foreign counterparties chose Singapore or London as the seat, worried about delays in Indian courts. That trend continues, and the Singapore International Arbitration Centre remains the institution most used by Indian parties. But India-seated international arbitration has grown, helped by the 2015 and 2019 amendments, a more restrained approach by Indian courts, and institutions such as the India International Arbitration Centre, the Delhi International Arbitration Centre and the Mumbai Centre for International Arbitration.
An Indian seat can make sense where the Indian party's assets are in India, the contract is performed in India, and both parties are comfortable with Indian law and procedure. Costs can be lower, especially for hearings. A foreign seat can make sense where neutrality matters to the foreign party, the transaction is global, or the parties prefer a court system with a long record of supporting arbitration.
Whether two Indian parties can choose a foreign seat was debated for years. The Supreme Court in PASL Wind Solutions v GE Power Conversion (2021) held that they may, and that the resulting award is enforced in India as a foreign award. This is a technical area; get advice before choosing.
Whatever the seat, make the clause clear. Ambiguity between "seat" and "venue" has produced years of litigation. The Supreme Court in BGS SGS Soma v NHPC (2019) and J&K Economic Reconstruction Agency v Rash Builders (April 2026) treated a designated "venue" as the seat in some contexts and held that the chosen seat's courts have exclusive jurisdiction. Use the word "seat".
How we handle international disputes
Read the clause and the contract
Seat, governing law of the contract, law of the arbitration agreement, institution, number of arbitrators, language. Each of these shapes the case.
Coordinate across jurisdictions
For foreign-seated cases, we work with lawyers at the seat and focus on Indian aspects: interim relief, evidence, assets and enforcement. For India-seated cases, we run the arbitration.
Protect assets in India
If the other side's assets are in India, we consider an application for interim measures under Section 9, available even for foreign-seated arbitrations.
Constitute the tribunal
Through the institution's rules, or the Supreme Court under Section 11 for India-seated ad hoc international cases.
Prepare the case
Pleadings, document production, witness statements and expert reports, often in a format familiar to international practice.
Hearings
In person at the seat or a convenient venue, or by video. Many hearings now combine both.
Enforce or resist the award
For India-seated awards, enforcement under Section 36. For foreign awards, enforcement under Sections 47 to 49. See foreign award enforcement.
Time and typical cost range
International arbitrations can be costly; institution fees and arbitrators' fees are often linked to the amount in dispute and published on the institution's website. Our fees are agreed in writing at the start, stage by stage, and are not linked to the outcome.
| Stage | Usual time | Cost |
|---|---|---|
| Clause review and strategy | 1 to 2 weeks | Our fee |
| Constitution of tribunal | 1 to 6 months | Institution registration fees |
| Pleadings and document production | 6 to 12 months | Arbitrators' and institution's fees |
| Evidentiary hearing | Usually a week or two of hearings | Venue, transcription, travel, experts |
| Award | Often 18 to 30 months from start | Balance fees |
| Enforcement in India | 6 to 24 months if contested | Court fee and our fee |
Documents needed
Contract
- The contract with the arbitration clause
- Related agreements (supply, distribution, JV, guarantees)
- Purchase orders, letters of credit and shipping documents
Correspondence
- Emails and letters about the dispute, including in other languages
- Notices of breach or termination
- Settlement attempts
Corporate and power
- Corporate details of all parties
- Board resolutions and powers of attorney
- Translations of key foreign-language documents
Where things happen
| Matter | India-seated international case | Foreign-seated case |
|---|---|---|
| Appointment of arbitrators if parties cannot agree | Supreme Court of India under Section 11 | Institution or courts of the seat |
| Interim relief in India | High Court with original jurisdiction, under Section 9 | Indian High Court under Section 9 (unless excluded) |
| Challenge to award | High Court with original jurisdiction under Section 34 | Courts of the seat only |
| Enforcement in India | Section 36 | Sections 47 to 49 in the High Court |
| Appeal against Indian court orders | Section 37 | Section 50 |
The law that governs the contract versus the law of the seat
International arbitrations often involve three different laws. The law governing the contract decides the parties' rights and obligations; it could be Indian law, English law or Singapore law. The law of the arbitration agreement decides whether the clause is valid and what it covers. The law of the seat decides the procedure and which courts supervise.
These can all be different. A contract governed by Indian law can have a Singapore seat. Where the contract is silent on the law of the arbitration agreement, there are competing approaches; courts in England, Singapore and India have discussed whether it follows the contract's law or the seat's law. If your clause is silent, this can become a preliminary issue in the arbitration.
For Indian parties, a contract governed by Indian law with a foreign seat means the tribunal will apply Indian contract law, but the Indian courts will not supervise the arbitration and cannot set aside the award. That combination is common and generally works well.
Interim relief from Indian courts in foreign-seated cases
If the arbitration is seated abroad but the other side's assets are in India, you may need Indian courts to step in. The proviso to Section 2(2), added in 2015, allows Indian courts to grant interim relief under Section 9, assist in taking evidence under Section 27, and hear appeals on those orders, for international commercial arbitrations seated abroad, unless the parties have agreed otherwise.
So a supplier with an SIAC arbitration against an Indian buyer can ask the Delhi High Court, where the buyer has assets, for an order securing the claim amount. Indian courts apply their own standards and do not simply rubber-stamp orders from the foreign tribunal. But a reasoned emergency arbitrator's order from SIAC or ICC can be persuasive.
Check whether your clause excludes Indian courts' jurisdiction over interim measures. Some clauses, read with the institution's rules, may do so. If so, relief must be sought from the tribunal or the courts of the seat.
Laws that apply
Definition of international commercial arbitration.
Applies to India-seated arbitrations, including international ones, with specific differences.
Indian courts' support for foreign-seated arbitrations on interim relief and evidence.
Enforcement of New York Convention awards in India.
Rules on cross-border payments and investments that often bear on remedies.
An Indian exporter's unpaid shipments
Here's a made-up example. A Moradabad handicrafts exporter supplied goods worth about €380,000 to a German importer under a contract governed by Indian law, with arbitration "seated in New Delhi under the rules of the India International Arbitration Centre". The importer stopped paying after the third shipment, citing delays.
Because the importer was foreign, this was an international commercial arbitration seated in India. We filed the request with IIAC, which constituted a three-member tribunal. Hearings were held partly in New Delhi and partly by video, so the importer's witnesses did not need to travel. The tribunal found that the delays were caused by the importer's late approval of samples and awarded the unpaid price with interest.
The importer did not challenge the award in India. Because the importer's assets were in Germany, we coordinated with German counsel to enforce the Indian award there under the New York Convention.
How we work
We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad), working with counsel in other jurisdictions where needed. This is what you can expect:
- Indian law and courts covered: interim relief, evidence, enforcement and challenges.
- Coordination with foreign counsel: for foreign-seated cases.
- Clear clause advice: seat, institution and law, before disputes arise.
- Remote-friendly: video meetings and hearings for clients abroad.
- Written fee terms: agreed stage by stage, never linked to the outcome.
Mistakes in international disputes
- Using "venue" when you mean "seat"
- Choosing a foreign seat in a country India has not notified under the New York Convention
- Ignoring the institution's filing requirements and fees
- Not securing assets in India while a foreign arbitration runs
- Assuming Indian courts can set aside a foreign-seated award
- Forgetting translation and apostille requirements
Evidence and procedure in international cases
International arbitrations often follow practices that Indian parties used to domestic litigation may find unfamiliar. Tribunals commonly use the IBA Rules on the Taking of Evidence as a guide. Instead of wide-ranging discovery, each side can request specific categories of documents from the other, in a "Redfern schedule" that sets out what is requested, why, and the other side's objections. The tribunal then decides what must be produced.
Witnesses usually give their evidence in written statements, and the hearing is used mainly for cross-examination. Experts on quantum, delay or technical issues are often appointed by each party, and tribunals sometimes direct them to meet and produce a joint statement of what they agree and disagree on. Hearings are usually compressed into a week or two, with detailed written submissions before and after.
For an Indian company, the practical lesson is to start preparing early. Collect documents and identify witnesses as soon as the dispute arises, keep emails organised, and be prepared to disclose documents that are relevant even if they are unhelpful. A party that withholds documents ordered to be produced risks the tribunal drawing adverse inferences.
Currency, payments and FEMA issues
Awards in international arbitrations are usually in the currency of the contract, such as US dollars or euros. If an Indian party must pay a foreign party under an award, the payment is a current account transaction under FEMA and can generally be remitted through an authorised dealer bank, with supporting documents. Where the award involves a share transfer or investment, FEMA's pricing rules for non-resident investment may also come into play.
Indian parties sometimes argue that an award should not be enforced because the payment would breach FEMA. The Supreme Court in Vijay Karia v Prysmian Cavi (2020) rejected such an argument where the breach was curable by obtaining RBI permission, and held that it did not make enforcement contrary to the fundamental policy of Indian law. This argument rarely succeeds on its own.
Foreign parties receiving payment under an Indian award or decree should check tax withholding requirements, since payments to non-residents may attract tax deduction at source depending on the nature of the payment and any tax treaty.
Hearings, travel and costs: making it manageable
International arbitration has a reputation for being expensive, and it can be. But many of the costs are choices. A sole arbitrator is cheaper than three. A documents-only or expedited procedure, available under the SIAC, ICC and other rules for smaller claims, can shorten the case dramatically. Virtual hearings remove travel and venue costs. Agreeing early on a timetable, limits on document production and page limits for submissions keeps legal costs down.
For Indian parties, choosing an Indian institution for an India-seated case, with hearings in New Delhi or Mumbai, can reduce costs considerably compared with a foreign seat, while still giving the foreign party an institution and procedure it can trust.
Frequently Asked Questions
What makes an arbitration international under Indian law?
At least one party must be a foreign national, habitual resident abroad, foreign company, or body managed abroad, and the dispute must be commercial.
Who appoints the arbitrator in an India-seated international arbitration?
The parties, or the institution under its rules. If they cannot agree, the Supreme Court under Section 11.
Can an Indian court set aside an award made in Singapore?
No. Only Singapore courts can set aside a Singapore-seated award. Indian courts can only refuse to enforce it on the Section 48 grounds.
Can I get interim relief in India for a Singapore arbitration?
Yes, under Section 9 read with the proviso to Section 2(2), unless the parties agreed otherwise.
Is the 12-month time limit mandatory in international arbitrations?
No. For international commercial arbitrations, Section 29A makes it only an endeavour.
Can two Indian companies choose a foreign seat?
The Supreme Court in PASL Wind Solutions (2021) allowed this. The resulting award is enforced as a foreign award.
Which institution is best for Indian parties?
It depends on the dispute. SIAC is widely used; ICC suits large global contracts; IIAC, DIAC and MCIA offer Indian seats with institutional support.
Can hearings be held online?
Yes. Most institutions allow virtual or hybrid hearings, which saves cost for parties in different countries.
What language will the arbitration be in?
As agreed in the clause, or decided by the tribunal. English is common.
Can an India-seated international award be challenged for patent illegality?
No. Patent illegality under Section 34(2A) is available only for domestic awards.
How are costs handled in international arbitration?
Usually under the institution's rules, with the tribunal deciding who bears the costs at the end, often following "loser pays" principles.
Can an NRI use international arbitration?
An NRI who is a habitual resident abroad is a foreign party for this purpose. See NRI and foreign clients.
Dispute with a foreign party?
Send us the contract and correspondence. We will tell you how the clause works, where your case belongs and how to protect assets in India.
This page gives general information about arbitration and dispute law in India as it stood when it was last reviewed. It is not legal advice on your case and does not promise any result. Time limits, fees and court rules change, and the right step depends on your own contract, dates and documents, so take advice before acting.
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