Arbitration Clause Prevails Over Exclusive Jurisdiction Clause

INTRODUCTION:

The Delhi High Court in its decision in M/s KLA Const. Technologies Pvt. Ltd. vs M/s Gulshan Homz Private Limited¹ inter alia held that the designation of a seat of arbitration carries with it exclusive supervisory jurisdiction, overriding any contrary clause under an agreement on Court's jurisdiction.

FACTS:

On 29th July, 2023, M/s Gulshan Homz Private Limited ("Respondent") issued a Letter of Intent to M/s KLA Const. Technologies Pvt. Ltd. ("Petitioner") for carrying out civil and structural works for the Gulshan Dynasty Moradabad Project and executed an agreement on 6th September, 2023 ("Agreement").

The Petitioner contended that despite mobilizing necessary resources and commencing execution of the work in accordance with the Agreement, delays occurred due to Respondent's failure to fulfill its contractual obligations. The Petitioner contended further that the Respondent did not make timely payments against Running Account Bills and