1. What is Renvoi?

Renvoi is a doctrine in private international law where a forum court, when applying a foreign law, also considers that foreign legal system’s conflict of laws rules, not just its substantive law. This may result in:

• Remission: the foreign law refers the matter back to the forum law
• Transmission: the foreign law refers to a third country’s law

In arbitration, renvoi becomes relevant when determining the applicable law—especially the law governing the arbitration agreement, the substantive contract, or the procedural law (lex arbitri).

2. Renvoi in the Context of Arbitration

Arbitration generally aims for certainty and predictability, so tribunals and courts are often reluctant to apply renvoi. The key issue is:

When parties choose a governing law, do they mean only the substantive law, or also its conflict rules?

Most modern arbitration practice rejects renvoi, unless expressly intended.

3. Why Renvoi is Problematic in Arbitration

• Undermines party autonomy
• Leads to uncertainty and unpredictability
• Causes forum shopping and delays
• Conflicts with arbitration’s goal of efficiency

4. Judicial Approach to Renvoi in Arbitration

Courts across jurisdictions have mostly rejected renvoi, especially in commercial arbitration.

5. Key Case Laws

(1) Bonython v Commonwealth of Australia

• Established that the proper law of the contract should be determined without invoking renvoi.
• Emphasized identifying the system of law intended by the parties.

(2) Amin Rasheed Shipping Corp v Kuwait Insurance Co

• The court rejected renvoi and held that express choice of law refers to substantive law only.
• Reinforced the principle that renvoi should not complicate contractual interpretation.

(3) Dicey, Morris & Collins approach

• Though not a single case, courts following this approach consistently interpret choice of law as excluding renvoi unless expressly included.
• Widely influential in arbitration jurisprudence.

(4) Naviera Amazonica Peruana SA v Compania Internacional de Seguros del Peru

• Distinguished between:
  • Proper law of contract
  • Proper law of arbitration agreement
• The court avoided renvoi and focused on closest and most real connection.

(5) Sulamérica Cia Nacional de Seguros SA v Enesa Engenharia SA

• Confirmed that choice of law for arbitration agreements does not automatically import renvoi.
• Emphasized commercial intention and effectiveness of arbitration clause.

(6) Reliance Industries Ltd v Union of India

• Indian Supreme Court clarified that:
  • Choice of law generally refers to substantive law
  • Renvoi is not presumed
• Highlighted importance of party autonomy in arbitration agreements

(7) NTPC v Singer Company

• Held that proper law of the contract governs arbitration unless otherwise specified
• No application of renvoi; focus on intention of parties

6. Modern Position in Arbitration

Most arbitration frameworks (like UNCITRAL Model Law) implicitly reject renvoi:

• Choice of law = substantive law only
• Conflict rules of that law are excluded
• Ensures clarity and predictability

7. Situations Where Renvoi Might Arise

Although rare, renvoi issues can arise when:

• The contract is silent on governing law
• There are multiple jurisdictions involved
• Courts (not arbitral tribunals) interpret the arbitration agreement
• Enforcement proceedings raise conflict of law questions

8. Practical Approach by Arbitral Tribunals

Arbitral tribunals usually:

• Apply direct choice of law rules
• Avoid renvoi unless explicitly required
• Interpret governing law clauses as referring to internal law only

9. Conclusion

Renvoi has limited relevance in arbitration. The dominant trend is:

• Rejection of renvoi
• Preference for certainty and party autonomy
• Focus on substantive law chosen by parties

In essence, arbitration seeks to avoid the complexity that renvoi introduces, ensuring smoother and more predictable dispute resolution.