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SANJIV KHANNA, SANJAY KUMAR, K. V. VISWANATHAN
Disortho S. A. S. – Appellant
Versus
Meril Life Sciences Private Limited – Respondent
JUDGMENT :
SANJIV KHANNA, CJI.
Disortho S.A.S, 1[Hereinafter referred to as, “Disortho”.] the petitioner before us, is a company incorporated in Bogota, Colombia. The respondent, Meril Life Science Private Limited, 2[Hereinafter referred to as, “Meril”.] is a company incorporated in Gujarat, India. Disortho and Meril executed an International Exclusive Distributor Agreement, 3[Hereinafter referred to as, “Distributor Agreement”.] dated 16th May 2016, for distribution of medical products in Colombia. Later, disputes emerged between the parties.
2. Disortho has filed this petition under Section 11(6) of the Arbitration and Conciliation Act, 19964[Hereinafter referred to as, “A&C Act”.], for appointment of an arbitral panel in terms of Clauses 16.5 and 18 of the Distributor Agreement. Meril has opposed the petition on jurisdictional grounds, contending that these clauses do not grant Indian Courts jurisdiction to appoint arbitrators. The clauses 16.5 and 18 read:
16.5. This Agreement shall be governed by and construed in accordance with the laws of India and all matter pertaining to this agreement or the matters arising as a consequence of this agreement with be subject
The arbitration agreement is governed by Indian law, with Indian courts retaining supervisory jurisdiction despite arbitration being conducted in Colombia.
The seat of arbitration is determined by the explicit terms of the arbitration agreement, and the designation of a venue as the seat excludes jurisdiction of Indian courts when the seat is outside In....
The designated seat of arbitration creates exclusive jurisdiction for resolving disputes as per contract, regardless of the place of contract execution or asset location.
The seat of arbitration, as specified in the agreement, determines the territorial jurisdiction of the court over the arbitral proceedings.
Point of law: Where any disputes arise between parties in respect of or in connection with the agreement then parties shall first endeavour to conciliate the disputes failing which the same shall be ....
The jurisdiction for appointing an arbitrator lies with the court where the principal agreement was executed, as per Section 11(6), despite a venue specified in an ancillary agreement.
The main legal point established in the judgment is that the designation of the seat of arbitration confers exclusive jurisdiction on the courts at that seat, influencing the court's decision on juri....
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