Seat Of Arbitration To Be Determined On Basis Of Connection With Arbitration Proceedings, Not With Cause Of Action: Delhi High Court livelaw.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from livelaw.in Daily Mail and Mail on Sunday newspapers.
The Supreme Court recently considered the implications of parties changing the venue or place of arbitration by mutual agreement. This is an important decision on the effect that a change of venue in arbitration proceedings has on the courts which have supervisory jurisdiction over said proceedings. The court, having held that the courts at the new arbitration venue had exclusive jurisdiction over the arbitral proceedings, has once again reinforced the legal importance of the seat of arbitration.
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The Supreme Court has held that when parties change the venue/place of arbitration by mutual agreement, the new venue/place will become the seat of the arbitration .
Therefore, the Courts at the changed venue/place of arbitration will be having jurisdiction over the arbitral proceedings.
A bench comprising
Justices Rohinton Fali Nariman and Hrishikesh Roy gave this significant ruling in the case
M/s Inox Renewables Ltd v Jayesh Electricals Ltd. The bench followed the precedent in
BGS SGS Soma JV vs NHPC Ltd, which held that the venue of arbitration will be the juridical seat of arbitration in the absence of contrary intention of the parties.