How Indian Contract Dispute Lawyers Assist UK and USA Businesses in Overcoming Jurisdiction Challenges in Cross-Border Disputes with their Indian Counterparts-1 | Jurisdictional Challenges | Key Legal Provisions
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Introduction
Contracts between Indian firms and businesses in the UK or the USA can get complicated fast. One major issue is figuring out which courts or arbitration bodies have power over disputes. Indian jurisdiction rules aren’t always straightforward. This article breaks down how Indian courts and arbitration panels decide jurisdiction, with practical tips for UK and US clients dealing with contract conflicts involving Indian parties.
Jurisdictional Challenges in Indian Contract Disputes
● Indian courts typically maintain jurisdiction over contracts governed by Indian law, even if the arbitration clause designates a foreign venue.
● The Supreme Court, in the case of Disortho SAS v Meril Life Sciences [(2025) SCC OnLine SC 123], reaffirmed the authority of Indian courts in disputes governed by Indian law, despite the presence of arbitration clauses favoring foreign seats.
● This decision makes clear that parties cannot easily circumvent Indian jurisdiction when the contract specifies Indian law as the governing framework.
Key Legal Provisions
● Section 11(6) of the Arbitration and Conciliation Act, 1996, regulates the appointment of arbitrators as well as matters related to jurisdiction. The recent amendments (2019, 2024) emphasise timely appointment and limit arbitrators’ powers to the contract terms (NBCC (India) Ltd. v. Zillion Infraprojects (P) Ltd., 2024) 7 SCC 174).
● Indian Contract Act, 1872 (Sections 73, 75) and Specific Relief Act, 1963 (amended 2018) provide remedies for breach and enforcement of contracts.
Latest News & Updates for UK and USA Businesses
- Supreme Court Clarifies Jurisdiction in Cross-Border Commercial Disputes, Source: Supreme Court of India (Official Website) Date: May 2025
The Supreme Court of India still handles original and appeal cases in cross-border commercial disputes. It stresses how important jurisdiction clauses are in contracts under Indian law. The Court’s decisions confirm that Indian courts keep supervisory control under Section 11(6) of the Arbitration and Conciliation Act, 1996, even when the arbitration happens outside India. This matters a lot for UK and US businesses working with Indian companies because it clarifies jurisdiction limits and enforcement.
Link: https://www.sci.gov.in/jurisdiction/ - Supreme Court Expands Scope of Appeal Under Article 142 for Complete Justice, Source: Supreme Court Observer (SCO.LR) Date: April 2025
In Biswajit Das v Central Bureau of Investigation (2025 INSC 85), the Supreme Court said that they could widen the scope of appeals beyond what was initially set to make sure justice is fully served. This helps the Court handle complicated contract and financial disputes better, especially those that cross borders and involve parties from the UK and the USA.
Link: https://www.scobserver.in/journal/sco-lr-2025-volume-1-issue-3/ - Interpretation of Exclusive Jurisdiction Clauses in Indian Contracts, Source: Indian Express Date: May 2025
The Supreme Court hasn’t made a direct ruling on this, but recently it mentioned that courts usually respect exclusive jurisdiction clauses in contracts. This applies only if the court chosen has proper jurisdiction. For UK and US companies working with Indian firms, this is important because it clarifies where disputes will be settled.
Link: https://indianexpress.com/article/explained/explained-law/president-murmu-seeks-advisory-opinion-sc-can-court-overturn-r-n-ravi-decision-10008362/ - High Courts’ Powers to Quash Proceedings in Contractual Disputes, Source: Supreme Court Observer (SCO.LR) Date: April 2025
In Kim Wansoo v State of Uttar Pradesh (2025 INSC 8), the Supreme Court highlighted the authority of High Courts under Article 226 and Section 482 of the CrPC (though this has now been replaced by new criminal procedure laws) to dismiss frivolous or abusive cases, including those linked to contract disputes. This safeguards foreign investors and companies, such as those from the UK and the USA, against unnecessary legal harassment in India.
Link: https://www.scobserver.in/journal/sco-lr-2025-volume-1-issue-1/
Important Highlights for UK and US Businesses
● Indian courts generally enforce jurisdiction clauses and oversee arbitration cases, which affects how disputes involving foreign parties are settled.
● Under Article 142, the Supreme Court holds wide authority to ensure complex disputes are fully resolved.
● Exclusive jurisdiction clauses tend to be respected, giving parties clear expectations on where to resolve disagreements.
● Additionally, High Courts have the power to stop misuse of legal procedures, helping protect foreign businesses from unwarranted litigation.
Authored by: Adv. Anant Sharma
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