Saturday, May 15, 2010

CISG and India

The convention on International Sale of Goods (CISG) is arguably one of the most successful international conventions in terms of the number of countries that have ratified it. Most of the leading trading countries, common law and civil law alike have adopted the convention with the exceptions of UK and India.

One would argue that with India extensively  engaged in International Commercial transaction, it would be apt for it to sign the CISG. However, some leading commentators and practitioners have outlined the difficulties for India in signing the CISG. In this regard two articles would be relevant. One by Monica Kilian, "CISG and The Problems with Common Law Jurisdictions" and the other one by Shishir Dholakia, "Ratifying the CISG-India's Options".

With the proposed changes being made in the Indian Arbitratin law discussed by Mihir here India would also boost its legal framework relating to International Commercial Transactions by ratifying the CISG. I would make an attempt to illucidate on these issues in some future posts.

3 comments:

  1. Dholakia's article survey's the demerits of adopting CISG. But it does not say the actual reasons behind non-adoption of CISG by India. Could you please post any article/ material on this point...

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  2. Thanks Badri for your observation

    yes, you are correct in stating that Mr. Dholakia's article only outlines broadly the merits and demirits of ratifying the CISG and does not pin point on India's official position. however i had a conversation with Mr. Dholakia on this point last september. According to him india's official position is impliedly highlighted in para. 3 of his article. It states that if India were to sign the CISG, it would have to depart from its well-established principles under the Sale of goods act, 1930.

    Some other articles have also highlighted India's position without elaborating on it.here are some:

    http://www.cisg.law.pace.edu/cisg/biblio/schwenzer-hachem.html (read the sub heading: CISG and Necessities of trade)

    Here is a confrence organized by FICCI in 2008:
    http://www.ficci.com/icanet/quaterlynov-2008.pdf
    (through this confrence report you can broadly say that india is considering signing the CISG)

    Though I am not sure to what extent they potray the official position of the state since i am unable to find any official document in this regard. Do let me know if you find something on this point.

    thanks again

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  3. @ Ankit Mishdra: Isn't it true for any country which has signed the CISG that it had to depart from its well-established national rules? Is there any specific argument relating to India? thanks to any one who can tribute to that.

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