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2019 Supreme(SC) 1350

ROHINTON FALI NARIMAN, ANIRUDDHA BOSE, V.RAMASUBRAMANIAN
BGS SGS Soma JV – Appellant
Versus
NHPC Ltd. – Respondent


Advocates Appeared:
For the parties :Arunabh Chowdury, Vaibhav Tomar, Pragya Baghel, Barnali Chowdhury, Shruti Choudhry, Abhishek Roy, Dechen W. Lachungpa, Nipun Sharma, Ankit Chaturvedi, Amitesh Chandra Mishra, ACM Legal, Tarkeshwar Nath, Puneet Taneja, Rameshwar Prasad Goyal, Advocates

Judgement Key Points

The provided legal document references several judgments that cite or discuss the case in question, particularly in the context of arbitration law, jurisdiction, and the concept of the "seat" of arbitration. Some judgments have explicitly acknowledged or relied upon this case to interpret provisions related to the jurisdiction of courts, the nature of arbitration clauses, and the interpretation of arbitration agreements.

For example, certain judgments have referred to this case when elaborating on the principles that the courts should read judgments as a whole and interpret them in their proper context, rather than as statutes or Euclidean theorems. Others have cited it to emphasize the importance of understanding the arbitration clause as an exclusive jurisdiction or seat designation, and the legal implications thereof.

Additionally, some judgments have discussed the case in the context of international arbitration law, particularly regarding the determination of the "seat" of arbitration and the importance of party autonomy. They have used this case to clarify that once a seat is designated, it typically functions as an exclusive jurisdiction, and courts should interpret arbitration clauses accordingly.

In summary, various judgments have cited or referenced this case to support principles related to the interpretation of arbitration agreements, the significance of the arbitration "seat," and the jurisdictional boundaries of courts in arbitration proceedings.


JUDGMENT :

R.F. NARIMAN, J.

1. Leave granted.

2. Three appeals before us raise questions as to maintainability of appeals under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Arbitration Act, 1996”), and, given the arbitration clause in these proceedings, whether the “seat” of the arbitration proceedings is New Delhi or Faridabad, consequent upon which a petition under Section 34 of the Arbitration Act, 1996 may be filed dependent on where the seat of arbitration is located.

3. At the outset, the facts in SLP (Civil) No.25618 of 2018 are set out as follows. On 16.01.2004, the Petitioner was awarded a contract for construction of Diversion Tunnels, Coffer Dams, Concrete Gravity Dams, Plunge Pools and Cutoff Walls of Subansri Lower Hydroelectric Project on river Subansri, with an installed capacity of 2000 MW, stated to be the largest Hydropower project yet in India. The project site is located in the lower Subansri districts in the States of Assam and Arunachal Pradesh. Clause 67.3 of the agreement between the parties provides for dispute resolution through arbitration. Clause 67.3 reads as follows:

    “Any dispute in respect of which the Employer


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