In DISORTHO S.A.S. VERSUS MERIL LIFE SCIENCES PRIVATE LIMITED 2025 INSC 352 the SUPREME COURT has explained the Appropriate test to determine jurisdiction in a case of trans-border arbitration given the interaction between three distinct legal systems which come into play when a dispute occurs: (i) lex-contractus, the law governing the substantive contractual issues; (ii) lex arbitri, the law governing the arbitration agreement and the performance of the agreement; and (iii) lex-fori, the law governing the procedural aspects of arbitration.
It was explained that there exists a divergence of opinion, both internationally and domestically, on the appropriate test to determine jurisdiction in a case of trans-border arbitration. This divergence stems from the interaction between three distinct legal systems which come into play when a dispute occurs: (i) lex-contractus, the law governing the substantive contractual issues; (ii) lex arbitri, the law governing the arbitration agreement and the performance of the agreement; and (iii) lex-fori, the law governing the procedural aspects of arbitration. These legal systems may either differ or align, depending on the parties’ choices. Furthermore, there may be internal splits within these legal systems, such as for lex arbitri. Secondly, when contractual clauses conflict, as is the case here, the resolution becomes legalistic and complicated.