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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JASGURPREET SINGH PURI
Parsvnath Developers Limited – Appellant
Versus
Devendra Singh Yadav – Respondent
JUDGMENT :
JASGURPREET SINGH PURI , J.
1. The present revision petition has been filed under Article 227 of the Constitution of India seeking setting aside the order dated 06.08.2022 (Annexure P-15) passed by the learned District Judge (Commercial), Rewari in arbitration petition No.8 of 2021, titled 'Parsvnath Developers Ltd. versus Brig. Devender Singh and others'.
FACTUAL MATRIX
2. The petitioner and the respondents entered into a collaboration agreement vide Annexure P-2 dated 27.10.2005 and in the aforesaid collaboration agreement, there is an arbitration clause i.e Clause 23 and also a clause pertaining to jurisdiction i.e. Clause 24. The aforesaid Clauses 23 and 24 are reproduced as under:-
“23. Arbitration
23.1 Disputes, if any, which may arise between the parties with respect to this Agreement, or interpretation of terms, or its performance or execution unless resolved mutually, shall be referred to Arbitration under the provisions of Arbitration & Conciliation Act, 1996. The venue of arbitration shall be New Delhi.
24. Jurisdiction
24.1 This Agreement shall be subject to the jurisdiction of Courts at Rewari and High Court at Chandigarh.”
(emphasis supplied)
3. In the aforesaid arb
Arbitration clause specifying venue at place or neutral country with exclusive jurisdiction elsewhere constitutes contrary indicia; not seat. Post-amendment, High Court jurisdiction for international....
The designated seat of arbitration establishes exclusive jurisdiction for related applications, affirming that the Commercial Court in Ranchi has jurisdiction over Section 34 applications.
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 ....
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.
Once seat of arbitration is replaced by mutual agreement, parties have to be referred to Courts at that place for resolution of Section 34 petition.
The determination of the arbitration 'seat' and 'venue' is critical; if the 'venue' does not specify a 'seat', jurisdiction lies with the designated court under the arbitration agreement.
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