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19 March 2021| Balapreetham Guest House Pvt. Ltd. Mypreferred Transformation and Hospitality Pvt. Ltd. | OP 438/2020 | PT Asha J | 2021 SCC OnLine Mad 1126
While one clause of the dispute resolution clause provided that “courts at Chennai shall have exclusive jurisdiction”, another clause provided that “the place of arbitration shall be New Delhi.”
What was the seat of the arbitration?
The court held, following BGS SGS Soma JV v. NHPC Ltd., (2020) 4 SCC 234, that the seat of the arbitration was New Delhi: “the very fact that parties have chosen a place to be the Seat necessarily implies that both parties have agreed that the quotes at the seat would have to use diction over the entire arbitral process.”
Also, harmoniously construed, the apparently conflicting clauses mean that if parties decided to abandon arbitration for a civil suit, the courts at Chennai would have jurisdiction.
Read the judgment here.
Categories: BGS Soma | Court | Definitions | Exclusive Jurisdiction | Place of Arbitration | Seat of Arbitration | Section 2 (1) (e) ACA