When Parties Change ‘Venue Of Arbitration’ By Mutual Agreement, Changed Venue Becomes ‘Seat Of Arbitration’
Case: M/s Inox Renewables Ltd v Jayesh Electricals Ltd
Coram: Justice RF Nariman, Hrishikesh Roy
Case No: [CA No 1556 of 2021]
Court Observation: “…the parties may mutually arrive at a seat of arbitration and may change the seat of arbitration by mutual agreement which is recorded by the arbitrator in his award to which no challenge is made by either part” “This case would show that the moment the seat is chosen as Ahmedabad, it is akin to an exclusive jurisdiction clause, thereby vesting the courts at Ahmedabad with exclusive jurisdiction to deal with the arbitration…….it is clear that the parties have, by mutual agreement, entered into an agreement to substitute the venue at Jaipur with Ahmedabad as the place/seat of arbitration under Section 20(1) of the Arbitration and Conciliation Act, 1996”.
“Once the seat of arbitration is replaced by mutual agreement to be at Ahmedabad, the Courts at Rajasthan are no longer vested with jurisdiction as exclusive jurisdiction is now vested in the Courts at Ahmedabad, given the change in the seat of arbitration”.