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ARTICLE · 11 AUGUST 2020

Arbitration – Seat And Venue Revisited

Confusion over basic concepts of arbitration viz, its seat and venue continue to bedevil Indian law. The latest addition to this cornucopia of conflicting judgements was rendered by the Supreme Court

IndiaLitigation, Mediation & Arbitration

Introduction

Confusion over basic concepts of arbitration viz, its seat and venue continue to bedevil Indian law. The latest addition to this cornucopia of conflicting judgements was rendered by the Supreme Court in Brahamani River Pellets v/s Kamachi Industries Ltd, on 25 July 2019.

Facts

The controversy in the present case arose out a sale of iron ore pellets on FOB terms. Payment under a Letter of Credit was to be made at Bhubaneshwar. Loadport was stipulated as Dhamra (Orissa) and disport Ennore/Chennai. Disputes arose between the parties regarding the price and payment terms. Consequently, Brahamani the seller did not deliver the goods. Kamachi the buyer claimed damages alleging that it had to procure the Iron Ore Pellets from other sources at higher rates.

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