Union of India v. McDonnell Douglas Corporation
England and Wales High Court
[1993] 2 Lloyd’s Law Rep. 48 (1992)
- Written by Sara Adams, JD
Facts
In 1987 the Union of India (India) (plaintiff) and McDonnell Douglas Corporation (McDonnell) (defendant) contracted for McDonnell to provide services to India connected to the launch of a space shuttle. Article 11 of the launch agreement indicated that it was to be governed by Indian law. Article 8 of the launch agreement, an arbitration clause, designated London as the seat of arbitration and stated that arbitration should be “conducted in accordance with” the procedures of the Indian Arbitration Act of 1940 (the act). A dispute concerning the launch agreement arose between India and McDonnell and was referred to arbitration. Before arbitration proceedings began, India filed an action in commercial court seeking a judicial decision on whether the arbitration proceedings should be governed by Indian law, as India asserted based on the provision directing that arbitration be conducted in accordance with the procedures of the act, or by English law, as McDonnell asserted based on the designation of London as the seat of arbitration.
Rule of Law
Issue
Holding and Reasoning (Saville, J.)
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