Foreign law governing the arbitration agreement can exclude Part I and bar Section 34 challenges to foreign awards.

An arbitration clause that states disputes will be settled pursuant to English Arbitration Law and that English law will apply to arbitration can extend beyond procedure to the arbitration agreement itself. Where the contract is governed by Indian law but the arbitration agreement is governed by foreign law, Part I of the Arbitration and Conciliation Act, 1996 is impliedly excluded. On that construction, foreign awards rendered in England are not amenable to challenge under Section 34 in India, and such applications are not maintainable.

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Issues: Whether the parties had, by express terms, excluded the application of Part I of the Arbitration and Conciliation Act, 1996 by agreeing that the arbitration would be pursuant to English law and that English law would apply to arbitration.

Analysis: The agreement separately dealt with the governing law of the contract and the law applicable to arbitration. The contract was governed by Indian law, but the arbitration clause provided that disputes would be settled pursuant to English Arbitration Law and that English law would apply in case of arbitration. On a plain and contextual reading, the choice of English law was not confined merely to procedural conduct of the arbitration; it extended to the arbitration agreement itself. Where the law governing the arbitration agreement is foreign law, Part I of the Arbitration and Conciliation Act, 1996 stands impliedly excluded. The applications under Section 34 were therefore not maintainable against foreign awards rendered in England.

Conclusion: The exclusion of Part I was established and the Section 34 applications were not maintainable.

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