SC Larger Bench To Set Principles About Seat & Venue In An Arbitration Agreement

BACKGROUND

We often come across arbitration clauses that specify the 'Venue' for conducting the arbitration proceedings but do not specify the 'Seat' of the arbitration. This leads to a confusion regarding the applicable laws and since the issue goes to the root of the matter, the Court's intervention is sought by the parties for decision on this issue. A similar issue came before the Hon'ble Supreme Court of India in Union of India Vs. Hardy Exploration and Production (India) Inc. Vide a decision rendered on May 01, 2018, the Hon'ble Apex Court considered it appropriate to refer the issue to be decided by a larger bench of the Hon'ble Apex Court.

FACTS OF THE CASE

Union of India (UOI) filed application under Section 34 of the Arbitration and Conciliation Act, 1996 (the Act) challenging the legality, validity and correctness of an award passed in an international commercial arbitration proceeding. Hardy Exploration and Production (India) Inc. (Hardy) took the