Friday, December 18, 2020
INTRODUCTION
Recently, the Supreme Court of United Kingdom (“UK Supreme Court”) in Enka Insaat Ve Sanayi AS v. OOO Insurance Company Chubb,
1 (“Enka v. Chubb”) has passed a landmark ruling, where they have set out the principles to be followed for determination of the law governing the arbitration agreement. This is the first time the UK Supreme Court has clarified the position of law after a careful consideration of the earlier cases, including the famous decision of the UK Court of Appeal in Sulamerica v. Enesa Engenharia (“Sulamerica”)
2.
The UK Supreme Court has held that where the arbitration clause does not specifically mention the law governing the arbitration agreement, but however mentions the law of the main contract, then the same would normally govern the law governing the arbitration agreement. Where there is no express choice of law governing the main contract, by default, the arbitration agreement would be governed b