law: The Arbitration and Conciliation Act, 1996
  Chapter VI Making of
  
  arbitral award and termination of proceedings
  28. Rules applicable
  
  to substance of dispute.
  1.  
  
    Where
  
  the place of arbitration is situate in India,-
  a.   in an arbitration
  
  other than an international commercial arbitration, the arbitral tribunal shall
  
  decide the dispute submitted to arbitration in accordance with the substantive
  
  law for the time being in force in India;
  b.   in international
  
  commercial arbitration,-
   
  
   i.  
  
    the
  
  arbitral tribunal shall decide the dispute in accordance with the rules of law
  
  designated by the parties as applicable to the substance of the dispute;
   
  
   ii.  
  
    any
  
  designation by the parties of the law or legal system of a given country shall
  
  be construed, unless otherwise expressed, as directly referring to die
  
  substantive law of that country and not to its conflict of laws rules;
   
  
   iii.  
  
    failing
  
  any designation of the law under clause (a) by the parties, the arbitral
  
  tribunal shall apply the rules of law it considers to be appropriate given all
  
  the circumstances surrounding the dispute.
  1.  
  
  
  2.  
  
    The
  
  arbitral tribunal shall decide ex aequo et bono or as amiable compositor only
  
  if the parties have expressly authorised it to do so.
  3.  
  
    In
  
  all cases, the arbitral tribunal shall decide in accordance with the terms of
  
  the contract and shall take into account the usages of the trade applicable to
  
  the transaction.