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G. S. SANDHAWALIA
Green Global Energy – Appellant
Versus
G. R. Infra Projects Ltd. – Respondent
JUDGMENT
G.S. Sandhawalia, ACJ.
The present petition under Section 11 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') has been filed by the petitioner for appointment of independent sole arbitrator to adjudicate upon the disputes between the parties.
2. It is pointed out that as per the Letter of Intent dated 04.08.2018 (Annexure P-1), the work for design and construction of Delhi Meerut Expressway from Dasna to Meerut in the State of Uttar Pradesh on EPC Basis and for Design and installation of Solar system and highway lighting and dedicated 11 KV feeder for Highway Lighting (COS) was awarded to the petitioner. The said Letter of Intent executed at Gurugram provides for an arbitration clause which reads as under:-
The court affirmed that jurisdiction must be inherently valid and cannot be conferred by consent if lacking, emphasizing the importance of the location of the cause of action in arbitration agreement....
The court held that an exclusive jurisdiction clause cannot confer jurisdiction on a court lacking inherent authority, emphasizing the need for jurisdiction to align with the location of the cause of....
The court upheld party autonomy, determining that the High Court has jurisdiction to appoint a Sole Arbitrator even with an exclusive jurisdiction clause designating Gurugram as the venue.
Jurisdiction in arbitration is determined by the agreed seat, not the location of cause of action; court lacks jurisdiction where arbitration clause specifies exclusive jurisdiction elsewhere.
Jurisdiction for arbitration petitions must align with the exclusive contractually specified jurisdiction, confirming that the High Court lacked authority to entertain the application under Section 1....
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.
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