National Thermal Power Corporation v. The Singer Company

National Thermal Power Corporation (NTPC) (plaintiff) and the Singer Company (defendant) signed a contract in New Delhi for certain works to be built in India. The contract consisted of two formal agreements. Both agreements were subject to the same general terms and conditions, which were incorporated into the agreements. The terms and conditions stated that the law applicable to the contract was the law of India and that Indian courts had jurisdiction over contractual matters. The contract contained an arbitration clause that stated disputes would be decided by arbitration as outlined in the terms and conditions, but the clause was silent regarding the proper law governing the arbitration clause. A dispute arose and was arbitrated by a tribunal formed by the International Chamber of Commerce (ICC) pursuant to the arbitration clause. The ICC selected London as the place of arbitration. An interim award was issued by the tribunal in favor of Singer. NTPC filed an application to set aside the interim award at the Delhi High Court. The high court dismissed the application, holding that because London was the seat of arbitration, English law governed the arbitration clause and, therefore, only English courts were authorized to set aside the award. NTPC appealed to the India Supreme Court, arguing that the arbitration agreement in the contract was governed by Indian law, not English law. No evidence outside the contract and terms and conditions was introduced to show that the parties clearly intended that the dispute would be subject to English law and jurisdiction.