Seat Venue Dichotomy In The Arbitration And Conciliation Act, 1996

Introduction

The concept of seat is extremely important for arbitration as it is deeply attached to the lexarbitri i.e.the law of the juridical seat of the arbitration is the law that is to be applied to the arbitral proceedings.¹The Arbitration and Conciliation Act, 1996 ( hereinafter 'The Act') has not clearly defined the concept of seat and venue which has therefore shifted the onus on the courts to clear the ambiguities by the way of judicial pronouncements. The provisions relevant for understanding conspectus of seat and venue under the 1996 Act are Sections 2(2) and 20.

On 10^th December 2019, the Supreme Court of India in the case of BGS SGS Soma JV v. NHPC Ltd.²gave a landmark judgement which has temporarily settled the position with respect to the seat and venue of an arbitration.