ELP – Arbitration Weekly Update – BGS SGS Soma JV V. NHPC Ltd

This week, we take a look at a very significant decision of the Supreme (SC) in BGS SGS Soma JV v. NHPC Ltd.This case was centered around an arbitration clause which, inter alia, provided that the "Arbitration Proceedings shall be held at New Delhi/Faridabad, India...". The language of the clause gave rise to jurisdictional challenges as to which courts would be competent to supervise the arbitration proceedings.

Consequently, in deciding this case, the SC has laid down the rules for determining the 'seat' of the arbitration, inter alia opining that designating a 'venue' of the arbitration proceedings amounts to designating a seat, in the absence of indicators to the contrary. The SC has further clarified that designating a seat of arbitration amounts to granting exclusive jurisdiction of the courts situated at such a seat.