VidhiSangh

Supreme Court of India · 04/03/2021

AMWAY INDIA ENTERPRISES PVT. LTD. versus RAVINDRANATH RAO SINDHIA & ANR.

[2021] 3 S.C.R. 50 · 2021 INSC 152

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Summary

The Supreme Court held that the distributorship dispute involved international commercial arbitration because the relevant individuals were foreign nationals and habitually resident abroad. Their Indian sole-proprietorship business had no separate identity and did not become an association merely because the spouses operated one distributorship. An Indian business address and domestic operations did not alter the statutory test. The High Court’s arbitrator appointment was set aside, leaving the prescribed Supreme Court appointment procedure to be followed.

Issues

  1. Whether the sole-proprietorship distributorship dispute was an international commercial arbitration.
  2. Whether the High Court had jurisdiction to appoint the arbitrator.

Provisions considered

Held

Result

Appeal allowed; High Court judgment appointing the arbitrator set aside, leaving the prescribed appointment procedure to be followed.

Judgment PDF: Supreme Court of India, [2021] 3 S.C.R. 50.