https://www.taxtmi.com/caselaws?id=290470 The SC dismissed the appeal regarding the validity of an arbitration agreement between two Indian companies with UK law as governing law. The court held that Agreement-II was an assignment, not a novation, as the original American company's obligations under Agreement-I remained undischarged. Since the dispute involved examination of the American company's rights and obligations, it constituted a three-party dispute with foreign elements, making the UK governing law clause valid. The court rejected the appellant's argument that the UK law stipulation violated public policy under Section 23 of the Indian Contract Act, ruling that validity of substantive contract clauses cannot be examined when determining arbitration agreement validity under Section 45. en-us Wed, 24 Aug 2016 00:00:00 +0530 Wed, 09 Jul 2025 17:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290470 The SC dismissed the appeal regarding the validity of an arbitration agreement between two Indian companies with UK law as governing law. The court held that Agreement-II was an assignment, not a novation, as the original American company's obligations under Agreement-I remained undischarged. Since the dispute involved examination of the American company's rights and obligations, it constituted a three-party dispute with foreign elements, making the UK governing law clause valid. The court rejected the appellant's argument that the UK law stipulation violated public policy under Section 23 of the Indian Contract Act, ruling that validity of substantive contract clauses cannot be examined when determining arbitration agreement validity under Section 45. Case-Laws Indian Laws Wed, 24 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290470