The jurisdictional seat of arbitration was Panchkula in Haryana, and not Delhi, as the arbitrator had fixed the jurisdictional seat under Section 20(2) of the Act before any party had moved the court under the Act. The courts in Delhi would not get jurisdiction as the jurisdictional seat of arbitration is Panchkula and not Delhi.

JUDGMENT :

Sanjiv Khanna, J.

Leave granted.

2. The short and interesting issue which arises in the present appeals is – whether conducting the arbitration proceedings at Delhi, owing to the appointment of a new arbitrator,¹[Mr. Justice (Retd) T.S. Doabia] would shift the ‘jurisdictional seat of arbitration’ from Panchkula in Haryana, the place fixed by the first arbitrator,²[Mr. Justice (Retd.) N.C. Jain] for the arbitration proceedings?

3. Before we refer to the statutory provisions and the case law precedents, facts in brief, relevant to decide the aforesaid question, are required to be stated. The appellant – BBR (India) Private Limited, and the respondent – S.P. Singla Constructions Private Limited, had entered into a contract dated 30th June 2011, under which the appellant was required to supply, install and undertake stressing of cable strays for the 592 metre long cable stay bridge being constructed by the respondent over the river Ravi at Basouli, Jammu and Kashmir. Letter of intent dated 30th June 2011 issued under the contract had an arbitration clause for resolution of disputes by a sole arbitrator, which reads thus :

“Dispute Resolution and Arbitration

Save where the decision of the contractor is final and binding on the subcontract any dispute difference arising between the contractor and sub-contractor relating to any matter. In first instance shall be attempted to be resolved by the arbitration of the sole arbitrator to be appointed by the managing director of S.P. Singla Constructions Pvt. Ltd.

This letter of intent is being issued to you in two original you are requested return one original duty signed in token of your acceptance, which shall constitute a valid agreement for the work till such time a formal agreement is signed between you and us.”

4. The arbitration clause is silent and does not stipulate the seat or venue of arbitration. The contract and letter of intent were executed at Panchkula in Haryana. The corporate office of the respondent is also located at Panchkula. However, the registered office of the appellant is located in Bengaluru, Karnataka.

5. As disputes arose between the parties, the matter was referred to arbitration, and Mr. Justice (Retd.) N.C. Jain was appointed as the sole arbitrator. In the first sitting held on 5th August 2014, the arbitral tribunal held that the venue of the proceedings would be H.No. 292, Sector-6, Panchkula, Haryana. The respondent was not present at the proceedings and had submitted a written request for an adjournment, which request was accepted. Neither party had objected to the place of arbitration proceedings as fixed by the arbitral tribunal. Arbitration proceedings were thereafter held at H.No. 52, Sector-8A, Chandigarh, on 16th December 2014, where the parties were directed to complete the pleadings, and the matter was adjourned for the framing of issues on 22nd February 2015. In the proceedings held on 29th May 2015, Mr. Justice (Retd.) N.C. Jain recused recording that he did not want to continue as the arbitrator for personal reasons. The records received thus far would be handed over to the new arbitrator. Pleadings were completed by then.

6. Thereupon, Mr. Justice (Retd.) T.S. Doabia took over as the sole arbitrator and recorded his consent in this regard in the first procedural order dated 30th June 2015. The order stated that the venue of the proceedings would be Delhi. Apparently, the appellant was not present and accordingly, the respondent was directed by the arbitral tribunal to take steps to intimate the appellant.

7. The next order dated 18th July 2015 mentions that the parties had filed the claim petition and the statement of defence along with the counterclaim before Mr. Justice (Retd.) N.C. Jain. Rejoinder had also been filed before the previous arbitrator. The parties were directed to file their evidence by way of affidavits for which timelines were fixed. The records from the previous arbitrator were required to be collected by the respondent and