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SUNITA AGARWAL
Sun N. Step Club Through Director Vinod Prajapti – Appellant
Versus
My Preferred Transformation And Hospitality Pvt. Ltd. – Respondent
ORDER :
(Sunita Agarwal, CJ.) :
1. Heard Ms. Hetvi Sancheti, learned advocate for the petitioner and Mr. Nachiket D. Mehta, learned advocate for the respondent and perused the record.
2. The dispute raised in the instant petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“the Act’ 1996”), is about the jurisdiction of this Court to make a reference. On the notice invoking arbitration clause sent by the petitioner, the respondent, referring to Clause 14.3 contained in dispute resolution Clause 14, had objected about the jurisdiction of this Court with the assertion that the place of arbitration seat in the contract is at New Delhi. The High Court, therefore, would be without jurisdiction to make a reference under Section 11 of the Arbitration Act.
3. The reliance is placed by the learned counsel for the respondent on the decisions of the Apex Court in the case of Indus Mobile Distribution Private Limited vs. Datawind Innovations Private Limited and others, (2017)7 SCC 678 and the judgement of the High Court of Delhi in the case of M/s.Devyani International Ltd. vs. Siddhivinayak Builders and Developers, 2017 SCC OnLine (Del) 11156 to substantiate his subm
The distinction between 'seat' and 'venue' of arbitration is crucial, with the seat determining jurisdiction, which in this case was Ahmedabad despite the venue being New Delhi.
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.
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 High Court lacks inherent power to review its own orders related to jurisdiction under the Arbitration Act unless expressly conferred by statute.
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....
Designation of the seat of arbitration must be clearly expressed; conflicting jurisdiction clauses require a harmonious construction favoring the overarching agreement.
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.
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