M/S. INOX RENEWABLES LTD. versus JAYESH ELECTRICALS LTD.

M/S. INOX RENEWABLES LTD. versus JAYESH ELECTRICALS LTD.

The parties, by mutual agreement as recorded by the arbitrator, validly shifted the seat/place of arbitration from Jaipur to Ahmedabad under Section 20(1) of the Arbitration and Conciliation Act, 1996; consequently courts at Ahmedabad have exclusive jurisdiction to hear the Section 34 petition and the High Court/Commercial Court judgments to the contrary are set aside.

Parties
Appellant: M/S. INOX RENEWABLES LTD.; Respondent: Jayesh Electricals Ltd.
Jurisdiction
India
Judgment Date
13 April 2021
Procedural Posture
Civil Appeal No.1556 of 2021 / Appeal Against High Court of Gujarat Judgment in Special Civil Application No.9536 of 2019; Disposed by Supreme Court
Outcome
Appeal allowed; impugned judgment set aside
Legal Topics
Seat of Arbitration, Venue of Arbitration, Change of Seat by Mutual Agreement, Exclusive Jurisdiction of Courts at Seat, Section 20(1), Section 34 Petition
Arbitration Civil Procedure Jurisdiction Seat of Arbitration Venue of Arbitration Change of Seat by Mutual Agreement Exclusive Jurisdiction of Courts at Seat Section 20(1) +1 more

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Parties

M/S. INOX RENEWABLES LTD.

Appellant

Jayesh Electricals Ltd.

Respondent

Procedural Posture

Civil Appeal No.1556 of 2021 / Appeal Against High Court of Gujarat Judgment in Special Civil Application No.9536 of 2019; Disposed by Supreme Court

Legal Issues

  1. 1 Whether parties can shift the seat/place of arbitration by mutual agreement without a written amendment
  2. 2 Whether the arbitrator’s finding that the venue was shifted from Jaipur to Ahmedabad effected a change of seat under Section 20(1) or merely a convenient venue under Section 20(3)
  3. 3 Whether change of seat/venue changes the exclusive jurisdiction of courts for Section 34 challenge

Ratio Decidendi

The parties, by mutual agreement as recorded by the arbitrator, validly shifted the seat/place of arbitration from Jaipur to Ahmedabad under Section 20(1) of the Arbitration and Conciliation Act, 1996; consequently courts at Ahmedabad have exclusive jurisdiction to hear the Section 34 petition and the High Court/Commercial Court judgments to the contrary are set aside.

Court Disposition

Appeal allowed; impugned judgment set aside

Orders

  • Impugned judgment dated 09.10.2019 set aside
  • Parties referred to the courts at Ahmedabad for resolution of the Section 34 petition