Report No. 176
(25) Section 28(1), (1A),: Section 28(1) as it now stands, opens with the words "where the place of arbitration is situated in India" and clause (a) deals with purely domestic arbitration and not international arbitration.
As it now stands, it gives an impression that in the case of such a purely domestic arbitration between Indian nationals or Indian companies, a foreign law can be applied to the dispute under the contract. For the reasons given in Chapter II relating to sec. 20(1), there is no question of having a place of arbitration outside India in such cases. We have already proposed adding 'within India' at the end of sec. 20(1).
With a view to remove the impression arising from the opening words in sec. 28(1), "where the place of arbitration is situated in India", namely, that there can be a place of arbitration outside India also, we propose to exclude the applicability of the said words from clause (a) of sub section (1). We accordingly, designate clause (a) as sub section (1) without the said words, and designate clause (b) as sub section (1A) and shift the above words to that sub section which deals with international arbitration.
(26) Section 29: Section 29 is proposed to be amended to say that the minority of opinion shall be appended to the arbitral award if made available within 30 days of the decision of the other arbitrators. If there is no majority view, the decision of the presiding arbitrator shall become the award.