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For a dispute arising out of a legal relationship, contractual or otherwise, considered commercial…

Section 2(1)(f) lists all four foreign party categories. The definition also requires a dispute arising out of a legal relationship, contractual or otherwise, considered…

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For a dispute arising out of a legal relationship, contractual or otherwise, considered commercial under Indian law, which categories can satisfy the foreign party requirement in section 2(1)(f) of the Arbitration and Conciliation Act, 1996?

(A) An individual who is a national of, or habitually resident in, a country other than India.

(B) A body corporate incorporated outside India.

(C) An association or body of individuals whose central management and control is exercised outside India.

(D) The Government of a foreign country.

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Answer and explanation

Correct answer C

Section 2(1)(f) lists all four foreign party categories. The definition also requires a dispute arising out of a legal relationship, contractual or otherwise, considered commercial under Indian law; foreign participation alone is insufficient.

Option feedback

Option A

Excluding the stated foreign-controlled association and foreign Government is inconsistent with subclauses (iii) and (iv).

Option B

Excluding the foreign Government is inconsistent with subclause (iv).

Option C

All four categories are expressly listed. The definition also requires a legal relationship considered commercial under Indian law.

Option D

Rejecting all four categories contradicts the four express statutory limbs.

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