Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act,1996 Jurisdiction for entertaining petition u/s. 9 - Seat of arbitration - Production Sharing Contract (PSC) - Dispute between the parties - Matter referred to arbitral tribunal under clause 34.3 of PSC - In terms of clause 34.12 of the PSC, the seat of arbitration was Kuala Lumpur, Malaysia - However, due to outbreak of epidemic SARS, the arbitral tribunal decided to hold its sittings first at Amsterdam and then at London and the parties did not object to this - Partial award passed - Respondent No. 1 challenged the partial award by filing a petition in the High Court of Malaysia at Kuala Lumpur - Thereafter, the respondents made request to the tribunal to conduct the . remaining arbitral proceedings at Kuala Lumpur, but the request was rejected and it was declared that the remaining arbitral proceedings will be held in London - At that stage, the respondents filed application u/s.9 of the Act in Delhi High Court for stay of the arbitral proceedings - Appellant objected to the maintainability of the application and pleaded that the Courts in India did not have the jurisdiction to entertain challenge to the arbitral award - Delhi High Court overruled the objection of the appellant and held that the said High Court had the jurisdiction to entertain the petition filed u/s.9 - On appeal, held: As per the terms of agreement, the seat of arbitration was Kuala Lumpur- If the parties wanted to amend clause 34.12, they could have done so only by written instrument which required to be signed by all of them - Admittedly, neither there was any agreement .between the parties to the PSC to shift the juridical seat of arbitration from Kuala Lumpur to London nor any written instrument was signed by them for amending clause 34.12 - Mere change in the physical venue of the hearing from Kuala Lumpur to Amsterdam and London did not amount to change in the juridical seat of arbitration - In cases of international commercial arbitrations held out of India provisions of Part I of the Act would apply unless the parties by agreement, express or implied, exclude all or any of its provisions - In that case the laws or rules chosen by the parties would prevail - In the present case, the parties had agreed that notwithstanding Clause 33. 1, the arbitration agreement contained in Clause 34 of PSC shall be governed by laws of England - This necessarily implies that the parties had agreed to exclude the provisions of Part I of the Act - As a corollary, the Delhi High Court did not have the jurisdiction to entertain the petition filed by the respondents u/s.9 of the Act and the mere fact that the appellant had earlier filed similar petitions was not sufficient to clothe that High Court with the jurisdiction to entertain the petition filed by the respondents -- English Arbitration Act, 1996 - ss.3 and 53. |
Judge | Hon'ble Mr. Justice G.S. Singhvi |
Neutral Citation | 2011 INSC 383 |
Petitioner | Videocon Industries Ltd. |
Respondent | Union Of India And Anr. |
SCR | [2011] 8 S.C.R. 569 |
Judgement Date | 2011-05-11 |
Case Number | 4269 |
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