The main legal point established in the judgment is that an exclusive jurisdiction clause in an agreement determines the courts with jurisdiction to entertain disputes and grant interim protection.

JUDGMENT :

Sanjeev Sachdeva, J.

1. By this petition, under section 9 of the Arbitration and Conciliation Act 1996 (hereby referred to as the ‘Arbitration Act’), petitioner inter alia seeks a restraint on the respondent from taking any illegal or coercive actions against the petitioner in terms of termination notice dated 25.11.2021 and further seeks a restraint on the respondent from initiating any process of termination till the Arbitrator decides the disputes arisen between the parties.

2. Subject petition was filed contending that parties had entered into a Non-exclusive dealership agreement dated 24.10.2016.

3. It is contended by the petitioner that the dealership agreement though initially for a period of three years, has been renewed on the same terms and conditions from time to time and has been last renewed on 05.08.2020. It is contended by learned counsel for the petitioner that petitioner is a dealer of the respondent since 2004.

4. Order dated 03.12.2021 in these proceedings records that after some arguments, statement of counsel for the petitioner was recorded that the matter was likely to be settled between the parties if the disputes were referred to mediation. Counsel appearing for the respondent had objected to the maintainability of the petition and contended that the mediation should be conducted at Chennai as there was an exclusive jurisdiction of the courts at Chennai.

5. Without going into the question of jurisdiction, this Court had referred the parties to mediation and directed that till further orders no coercive action shall be taken pursuant to the notice dated 25.11.2021. Thereafter, the matter was adjourned from time to time.

6. Mediation was not successful and respondent filed an application seeking vacation of the interim protection as also for the dismissal of the petition.

7. Learned Senior Counsel appearing for the respondent submits that the courts at Delhi do not have jurisdiction to entertain any proceedings under the Arbitration Act as the parties have conferred exclusive jurisdiction on the courts at Chennai.

8. On merits, learned Senior Counsel for the petitioner submits that the agreement between the parties itself stipulates that the same can be terminated by a notice of 60 days on either side. He submits that since the agreement itself is terminated, there is no question of any injunction being granted or any restraint being imposed on the termination even pending arbitration. He submits that in case petitioner has a grievance, on termination, petitioner can raise a claim before the Arbitral Tribunal in accordance with law.

9. Reference may be had to some of the Clauses in the dealership agreement. The arbitration Clause 11 reads as under:-

“All questions, differences, controversies or disputes whatsoever between the PARTIES or their representatives touching upon responsibilities and obligations of the PARTIES or any matter connected with the terms of this Agreement, whether as to construction or otherwise, shall be referred to arbitration of a Sole Arbitrator to be appointed by HMI. The provisions of the Indian Arbitration & Conciliation Act, 1995 or any other re-enactments or statutory modifications thereof for the time being in force shall be applicable for settlement of the dispute, controversies or differences. The decision of the Sale Arbitrator shall be final and binding on the Parties. The venue of the arbitration shall be Chennai and the language of arbitration shall be English. The arbitration proceedings will be on a fast track basis.” (underlining supplied)

10. Clause 12 of the agreement refers to jurisdiction and governing law.

Clause 12 reads as under:-

“JURISDICTION & GOVERNING LAW

This Dealership Agreement shall be governed by & construed in accordance with the laws of India. Subject to the above Clause on Arbitration, and without affecting the validity of the arbitration clause, the Parties hereto unconditionally and irrevocably agree to submit to the exclusive jurisdiction of the c