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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SONIKA GARG – Appellant
Versus
MUTHOOT FINANCE LTD AND ANR – Respondent
JUDGMENT :
JASGURPREET SINGH PURI, J.
1. The present application has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) seeking appointment of an independent Arbitrator to adjudicate the disputes and differences which have arisen between the parties.
2. On the last date of hearing i.e. 30.01.2026, when the matter was taken up, the learned counsel for the applicant prayed for a short accommodation to prepare the case and to address arguments on the issue of territorial jurisdiction.
3. Today, the learned counsel for the applicant while arguing the matter submitted that this Court has territorial jurisdiction to entertain the application under Section 11 of the Act. In this regard, he referred to the Terms and Conditions and Declaration and Assurance of the letter of loan sanction which has been annexed vide Annexure A-4, which is a translated version of only one paragraph of the aforesaid Declaration and Assurance. He further submitted that the applicant has attached the vernacular of Annexure A-4, which contains the complete Terms and Conditions of the letter of loan sanction as well as the aforesaid Declaration and Assuran
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 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.
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 central legal point established in the judgment is the significance of contractually fixed exclusive jurisdiction and seat of arbitration in determining territorial jurisdiction for arbitration p....
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 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.
The seat of arbitration clause, fixing the seat of arbitration at New Delhi, resulted in courts at New Delhi being exclusively competent to entertain petitions under the 1996 Act, in exercise of its ....
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....
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