Conflict in contractual clauses while determining jurisdiction in case of trans-border arbitration.
Conflict in contractual clauses while determining jurisdiction in case of trans-border arbitration. Recently, the Hon’ble Supreme Court of India in Disortho S.A.S. v. Meril Life Sciences Private Limited , examined the vexed question of jurisdiction in case of trans-border arbitration. The said divergence emerges from the interaction between three distinct legal systems which come into play when a dispute occurs: (i) lex-contractus, the law governing the substantive contractual issues; (ii) lex arbitri, the law governing the arbitration agreement, and the performance of this agreement; and (iii) lex-fori, the law governing the procedural aspects of arbitration. Let us first understand the facts of the case: The petitioner is a company incorporated in Colombia and the respondent is a company incorporated in Gujarat, India. The petitioner and the respondent had executed an International Exclusive Distributor Agreement dated 16.05.2016 for distribution of medi...