BHARAT ALUMINIUM COMPANY v. KAISER ALUMINIUM TECHNICAL SERVICES INC

to be. In that context, particularly in agreements of arbitration, where party autonomy is the grundnorm, how the parties worked out the agreement, is one of the indicators to decipher the intention, apart from the plain or grammatical meaning of the expressions and the use of the expressions at the proper places in the agreement. The respondent had invoked the provisions of English law for the purpose of the initiation of the unsettled disputes. It has hence, while interpreting an agreement, to be kept in mind that the parties, intended to avoid impracticable and inconvenient processes and procedures in working out the agreement. [Para 10] [370-G-H] [371-A-B]

1.2 A close perusal of the terms between the parties would clearly show that in the first part of Article 22 of the Arbitration Agreement, it is agreed between the parties that the proper law of the contract will be governed by the prevailing law of India, and in the case of arbitration, English Law would apply. In other words, the agreement as a whole would be governed by Indian Law, and in case of arbitration, the English Law will apply. No doubt, one should not strain too much to interpret an agreement between two parties as in the case of a statutory interpretation. The approach in analysing the terms of agreement should be straight and plain but at the same time cohesive and logical. [Para 9) [370-C-D]

1.3 The law applicable to arbitration agreement in the instant case is English Law. Once it is found that the law governing the arbitration agreement is English Law, Part I of the Arbitration Act stands impliedly excluded. It cannot be said that the arbitration agreement is to be governed by the Indian Law. There is no error in the view taken by the High Court that the applications filed by the appellant under section 34 of the Arbitration Act are not maintainable against the two foreign awards between the parties. [Para 13, 14, 15] [371-H; 372-A, E, F]