Shifting Of Seat Of Arbitration

In recent times, the arbitration law in India has evolved many folds. It has been settled by the Supreme Court that 'seat of arbitration' determines the jurisdiction of the court in an arbitration matter. However, what happens when the venue/ seat of arbitration is changed. The present article deals with a recent judgment passed by the Supreme Court in Inox Renewables Ltd. vs. Jayesh Electricals Ltd.¹ clarifying this aspect.

The above judgment finally settles a vital question of law regarding the shifting of seat of arbitration and the change in jurisdiction of court arising due to such shifting of seat of arbitration. The appeal before Supreme Court was preferred from the judgment passed by the High Court of Gujarat, holding that the courts at Jaipur, Rajasthan would have the exclusive jurisdiction to entertain application for setting aside the arbitral award under Section 34 of the Act.