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MOUSHUMI BHATTACHARYA
Harji Engineering Works Pvt. Ltd. – Appellant
Versus
Bharat Heavy Electricals Limited – Respondent
| Table of Content |
|---|
| 1. petitioner seeks injunction against bank guarantee invocation. (Para 1) |
| 2. arguments on maintainability of arbitration application. (Para 2 , 3) |
| 3. review of clauses related to arbitration jurisdiction. (Para 4 , 5 , 6 , 7 , 8) |
| 4. clarification needed on 'kolkata' as arbitration seat. (Para 9 , 10 , 11 , 12 , 13) |
| 5. interpretation principles for arbitration clauses. (Para 14 , 18 , 19) |
| 6. supreme court ruling on bracketed terms in arbitration. (Para 15 , 16 , 17) |
| 7. seat of arbitration determined to be in north 24 parganas. (Para 20) |
| 8. court dismisses application for lack of jurisdiction. (Para 21 , 22) |
JUDGMENT :
(Moushumi Bhattacharya, J.)
The petitioner has filed the present application under section 9 of The Arbitration and Conciliation Act, 1996 for an injunction restraining the respondent no. 1 Bharat Heavy Electricals Limited (BHEL), from invoking and encashing the performance bank guarantee issued by the respondent no. 2 Punjab and Sind Bank and the modified performance bank guarantee of 7th April, 2021 and 8th March, 2022 respectively.
2. The respondent no. 1 BHEL is represented and learned counsel appearing for BHEL takes a preliminary objection to the maintai
Point of law : Seat of Arbitration - What constitutes the ‘seat’ of arbitral proceedings - the intention of the parties is germane and that can be gathered from Contract.
In a domestic arbitration, the selected forum should have precedence over the seat of arbitration to give primacy to party autonomy.
The designation of 'venue' in an arbitration clause does not imply the 'seat' of arbitration, which must be expressly specified; exclusive jurisdiction remains with civil courts at the location defin....
The seat of arbitration, as specified in the agreement, determines the territorial jurisdiction of the court over the arbitral proceedings.
The seat of arbitration determines jurisdiction; courts at the arbitration site hold supervisory authority over proceedings regardless of where the cause of action arises.
Jurisdiction for arbitration must align with the agreed seat specified in the contract, ensuring only that court adjudicates related matters.
Point of Law : There was concurrent jurisdiction conferred on the courts ceased with subject matter in dispute and the courts where arbitration was carried out.
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