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Single venue for arbitration

Courts in two countries cannot have concurrent jurisdiction in arbitration as it would create conflicting decisions, unnecessary complications and inconvenience. It would also go against the spirit of the Arbitration and Conciliation Act which is to enable parties to resolve disputes speedily, economically and finally. The Supreme Court stated so while setting aside the view of the Bombay High court which had ruled that the courts in England and India have concurrent jurisdiction in the disputes between Enercon India Ltd and Enercon GMBH, incorporated under German laws. There might also be an "ugly rush" to get one forum decide before the other and it would be "a recipe for confusion and injustice". In this case, two Indians entered into a joint venture agreement with the German corporation and formed the Indian company to manufacture and sell wind turbine generators. However, the latter alleged that the German firm stopped shipments of the supplies. The reason urged was that the German firm wanted to pressurise it to sell the shareholding in a desired manner. The dispute travelled from courts in Daman, where the company is registered, the Bombay High Court and to England. The high court ruled against the Indian firm. It appealed to the Supreme Court. It appointed the chairman of the arbitration tribunal and declared that it would conduct proceedings in India.

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