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legalgal (Associate)     10 February 2010

Can two indian parties, contract on foreign law?

 Is it possible for two indian parties to make a contract on the basis of rules of foreign laws (english law, or american law). Is it possible for them to oust indian law? 

There is clear law in Arbitration Act, and Contract Act. But i'm looking for something in CPC or a judgment to support they cant'. The Bombay High Court has left the law in disarray with a 2002 judgment. 



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 4 Replies

R.R. KRISHNAA (Legal Manager)     10 February 2010

It is not possible for two Indian persons to contract ousting indian jurisdictions unless the transactions clearly pertain to international commercial transaction or the transaction taking place in any other international territory.

legalgal (Associate)     10 February 2010

 Thank you so much for the reply, i thought the same.

Is there any stated law to support this, maybe in some act, or a judgment? 

legalgal (Associate)     10 February 2010

The thing is, I have an English employee who is in India on a work permit. He wishes for our contract to be drawn as per the laws of England. I'm sure that it isn't possible, but if there was something to support this contention? 

R.R. KRISHNAA (Legal Manager)     10 February 2010

It is not open to parties to agree to vest jursidction is a court (even abroad) which is not competent to entertain the suit.  Judgment: 1961 (2) MLJ 337


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