In present day arbitration jurisprudence, the principle of
territoriality is generally followed to determine which courts have
exclusive jurisdiction. It provides that the seat of arbitration is
analogous to an exclusive jurisdiction clause conferring
jurisdiction upon the court(s) of the seat. However, in certain
Agreements, parties have stipulated that a certain Court shall have
exclusive jurisdiction over disputes or differences arising out of
the Agreement, and also stipulated a distinct Seat in the
Arbitration clause.
In Aniket SA Investments LLC v. Janapriya Engineers
Syndicate Pvt. Ltd.1
["AniketSA"], the Bombay High Court
reconciled the conflicting provisions of such an agreement by
distinguishing between- [A.] a Court having exclusive jurisdiction
in matters under the (Indian) Arbitration and Conciliation Act,
1996 ["Arbitration Act"], being the
principal court of civil jurisdiction at the Seat; and [B.] a Court
having exclusive jurisdiction in all other