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ARTICLE · 11 AUGUST 2020

Importance Of Seat Of Arbitration Reaffirmed

The Supreme Court in its judgment in BGS SGS SOMA JV vs. NHPC LTD1 reiterated the importance of correctly identifying the seat of an arbitration in order to avoid disputes relating to the curial

IndiaLitigation, Mediation & Arbitration

Introduction

The Supreme Court in its judgment in BGS SGS SOMA JV vs. NHPC LTD1 reiterated the importance of correctly identifying the seat of an arbitration in order to avoid disputes relating to the curial jurisdiction of the courts. A plethora of conflicting judgments confusing seat with the venue have created difficulties in ascertaining the jurisdiction of the curial court. The ruling is therefore both welcome and timely as it clarifies and helps identify the place of arbitration where not expressly provided for by the parties.

Brief Facts

An engineering contract (Contract) between the parties provided for settlement of disputes with a foreign contractor in accordance with the Arbitration and Conciliation Act, 1996 ("Act") and the UNCITRAL rules. The Contract contemplated that arbitration would be held in New Delhi/Faridabad. Arbitral proceedings were duly conducted at New Delhi and the award was published there.

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The above is a generic analysis and should not be regarded as a substitute for specific advice based on the facts of a client’s objectives and specific commercial agreements reached. Please do reach out to us at [email protected] for any queries.

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