Tuesday 1 October 2024

A petition under Section 34 of the Arbitration Act, 1996 may be filed dependent on where the seat of arbitration is located.

 IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 9307 OF 2019
(ARISING OUT OF SLP (CIVIL) NO.25618 OF 2018)
BGS SGS SOMA JV …Petitioner
Versus
NHPC LTD. …Respondent
WITH
CIVIL APPEAL NO. 9308 OF 2019
(ARISING OUT OF SLP (CIVIL) NO. 25848 OF 2018)
WITH
CIVIL APPEAL NO. 9309 OF 2019
(ARISING OUT OF SLP (CIVIL) NO. 28062 OF 2018)
JUDGMENT


100.However, the fact that in all the three appeals before us the proceed- ings were finally held at New Delhi, and the awards were signed in New Delhi, and not at Faridabad, would lead to the conclusion that both parties have chosen New Delhi as the “seat” of arbitration under Section 20(1) of the Arbitration Act, 1996. This being the case, both parties have, therefore, chosen that the Courts at New Delhi alone would have exclusive jurisdiction over the arbitral proceedings. There- fore, the fact that a part of the cause of action may have arisen at Faridabad would not be relevant once the “seat” has been chosen, which would then amount to an exclusive jurisdiction clause so far as Courts of the “seat” are concerned.

101.Consequently, the impugned judgment is set aside, and the Section 34 petition is ordered to be presented in the Courts in New Delhi, as was held by the learned Single Judge of the Special Commercial Court at Gurugram.

102.The appeals are allowed in the aforesaid terms.