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2021 (3) TMI 245 - SC - Indian LawsSeeking appointment of a sole arbitrator - international commercial arbitration or not - Jurisdiction to appoint arbitrator - Section 11(6) of the Arbitration and Conciliation Act, 1996 - association or body of individuals under Section 2(1)(f)(iii) and not under Section 2(1)(f)(i) - whether the requirements of sub-clause (i) to Section 2(1)(f) have been met, in which case it is unnecessary to go to sub-clause (iii), as under Section 2(1)(f), “at least one of the parties” must fall under sub-clauses (i) to (iv) of Section 2(1)(f)? - HELD THAT:- The respondents have themselves applied to become distributors of Amway products in India as a sole proprietorship concern under the relevant forms issued by the appellant, read with the Code of Ethics. In ASHOK TRANSPORT AGENCY VERSUS AWADHESH KUMAR AND ANOTHER [1998 (3) TMI 701 - SUPREME COURT], this Court has clearly held that a sole proprietary concern is equated with the proprietor of the business. The argument that there is no international flavour to the transaction between the parties has no legs to stand on. Indeed, an analysis of Section 2(1)(f) would show that whatever be the transaction between the parties, if it happens to be entered into between persons, at least one of whom is either a foreign national, or habitually resident in, any country other than India; or by a body corporate which is incorporated in any country other than India; or by the Government of a foreign country, the arbitration becomes an international commercial arbitration notwithstanding the fact that the individual, body corporate, or government of a foreign country referred to in Section 2(1)(f) carry on business in India through a business office in India. This being the case, it is clear that the Delhi High Court had no jurisdiction to appoint an arbitrator in the facts of this case. Appeal allowed - decided in favor of appellant.
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