๐๐ฎ๐๐ฒ ๐ก๐ฎ๐บ๐ฒ: Disortho S.A.S. v. Meril Life Sciences Pvt. Ltd.
๐๐๐ฑ๐ด๐ฒ๐บ๐ฒ๐ป๐ ๐๐ฎ๐๐ฒ: 18 March 2025
In a significant ruling, the Supreme Court of India in Disortho S.A.S. v. Meril Life Sciences Pvt. Ltd. held that I๐ป๐ฑ๐ถ๐ฎ๐ป ๐ฐ๐ผ๐๐ฟ๐๐ ๐ต๐ฎ๐๐ฒ ๐ท๐๐ฟ๐ถ๐๐ฑ๐ถ๐ฐ๐๐ถ๐ผ๐ป ๐๐ผ ๐ฎ๐ฝ๐ฝ๐ผ๐ถ๐ป๐ ๐ฎ๐ป ๐ฎ๐ฟ๐ฏ๐ถ๐๐ฟ๐ฎ๐๐ผ๐ฟ ๐ฒ๐๐ฒ๐ป ๐ถ๐ณ ๐๐ต๐ฒ ๐ฎ๐ฟ๐ฏ๐ถ๐๐ฟ๐ฎ๐๐ถ๐ผ๐ป ๐๐ฒ๐ป๐๐ฒ ๐ถ๐ ๐ถ๐ป ๐ฎ ๐ณ๐ผ๐ฟ๐ฒ๐ถ๐ด๐ป ๐ฐ๐ผ๐๐ป๐๐ฟ๐, provided the contract specifies Indian law as the governing law.
The dispute arose from a 2016 distribution agreement between Disortho, a Colombian company, and Meril, an Indian medical devices firm. While the agreement designated Bogotá, Colombia, as the arbitration venue, it also explicitly stated that Indian law would govern the agreement. Disortho filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking an arbitrator’s appointment. Meril opposed the petition, arguing that Colombian authorities had exclusive jurisdiction.
Chief Justice Sanjiv Khanna, leading the bench, clarified that a “venue” is merely a geographical location, while a “seat” determines the legal framework of arbitration. Applying established legal principles, the Court concluded that the governing law of the contract also extended to the arbitration agreement. Consequently, the Court appointed Justice S.P. Garg as the sole arbitrator, with arbitration proceedings to be conducted under the Delhi International Arbitration Centre Rules.
This ruling reinforces the primacy of party autonomy and strengthens India’s position as an arbitration-friendly jurisdiction.
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