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Supreme Court Of India

(From : Delhi)*

Hon'ble Judge(s): Pinaki Chandra Ghose, R. F. Nariman , JJ

(A) Arbitration and Conciliation Act (26 of 1996) , S.2(2), S.20— 'Seat of arbitration' - 'Neutral venue' can be chosen by parties to arbitration - Even if no cause of action may have arisen at neutral venue, not having jurisdiction in classical sense. Civil P.C. (5 of 1908) , S.16, S.20— Under Law of Arbitration, unlike Civil P. C. which applies to suits filed in courts, reference to 'seat' is concept by which neutral venue can be chosen by the parties to arbitration clause. Neutral venue may not in classical sense have jurisdiction - that is, no part of cause of action may have arisen at neutral venue and neither would any of provisions of Sections 16 to 21 of CPC be attracted. In arbitration law however, as has been held above, moment 'seat' is determined, fact that seat is at Mumbai would vest Mumbai courts with exclusive jurisdiction for purposes of regulating arbitral proceedings arising out of agreement between parties.(Para 20) (B) Arbitration and Conciliation Act (26 of 1996) , S.2, S.20, S.31— Place of arbitration - Juridical seat - Arbitration clause stipulating seat of arbitration as Mumbai - Once 'seat' is determined at Mumbai, Mumbai courts to be vested with exclusive jurisdiction for purposes of arbitral proceedings arising out of agreement. ....