Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996 – s.34 – “seat” and“venue” for holding arbitration proceedings under the Arbitrationagreement – Arbitrator held meeting at Kuala Lumpur and signedthe arbitral award in favour of the respondents – Appellantchallenged the legal propriety and correctness of the award u/s.34– High Court held that in the terms of the arbitration agreement,the Indian Courts had no jurisdiction to entertain the application,as Art.33 of the agreement mentioned Kuala Lumpur as a venue forarbitration – Aggrieved, appellant filed appeal – Two judge Benchof Supreme Court referred the matter to the larger Bench to decidethe question regarding “seat” and “venue” for holding arbitrationproceedings under the Arbitration agreement/ InternationalCommercial Arbitration agreement – Held: The arbitration clausehas to be appositely read to understand its intention so as to arriveat a conclusion on whether it determines the seat or not – Further,it has to be read in a holistic manner so as to determine thejurisdiction of the Court – That apart, if there is mention of venueand something else is appended thereto, depending on the natureof the prescription, the Court can come to conclusion that there isimplied exclusion of Part-I of the Act – The sittings at various placesare relatable to venue – However, it cannot be equated with the seatof arbitration or place of arbitration – Insofar place of arbitrationbetween the parties in present case is concerned, place of arbitrationhad not been agreed upon between the parties – In case of failureof agreement between the parties, the Arbitral Tribunal was requiredto determine the same u/Art.20 of the UNCITRAL Model Law – Itwas also incumbent on the Arbitral Tribunal that the determinationwas clearly stated in the ‘form and contents of award’ as postulatedin Art.31 of the UNCITRAL Model Law – In instant case, there was no determination or in other words, there was no adjudication andexpression of an opinion – Thus, the word ‘place’ cannot be usedas ‘seat’, though normal ly ‘place’ and ‘seat’ are usedinterchangeably – A place unlike seat, as seen in the contract, canbecome a seat if one of the conditions precedent is satisfied – Itdoes not ipso facto assume the status of seat – As conditions precedentwere not satisfied, Kaula Lumpur was not the seat or place ofarbitration – Therefore, Courts in India had jurisdiction to entertainapplication u/s.34 of the Act – UNCITRAL Model Law – Arts.20and 31. |
Judge | Honble Mr. Justice Dipak Misra |
Neutral Citation | 2018 INSC 865 |
Petitioner | Union Of India |
Respondent | Hardy Exploration And Production (india) Inc |
SCR | [2018] 13 S.C.R. 379 |
Judgement Date | 2018-09-25 |
Case Number | 4628 |
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