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Arbitration : Difference between choice of venue and seat where exclusive jurisdiction specified

In CVS INSURANCE AND INVESTMENTS vs VIPUL IT INFRASOFT PVT. LTD, the agreement between the parties had specified that venue of arbitration would be Noida/Delhi under the exclusive jurisdiction of courts at Noida.

The parties landed up before the Delhi High Court with the question as to where shall be the seat of the arbitration viz. at Delhi or Noida when the agreement between the parties give exclusive jurisdiction to courts at Noida and there being no high court in Noida?

The court held that :-

(a) there shall be only one seat of arbitration though venues may be different; 
(b) where the arbitration seat is fixed (may be neutral), only such court shall have an exclusive jurisdiction;
(c) where a seat/place of arbitration is fixed it is section 20(1) and section 20(2) of the Act we are referring to; and 
(d) venue relates to convenience of parties, per section 20(3) of the Act.

The facts herein show barring the registered office of the respondent company at Delhi, none of the cause of action arose within  the jurisdiction of this Court. Admittedly the agreement was executed at NOIDA; it was to be performed at NOIDA; payments pursuant to the agreement were to be made at NOIDA; the agreement pertains to a sub-lease of unit based in NOIDA; the stamp paper on which the agreement  was executed pertains to Utter Pradesh; and that the petitioner and respondent had agreed to an exclusive jurisdiction of NOIDA even in relation to the arbitration proceedings and all other matters connected to the arbitration besides suits, complaint, litigation etc.

Now simply to allege there being no High Court in NOIDA would not confer the jurisdiction upon the Courts at U.P.; would be stretching  the Article 12 (supra) too much. The subject agreement when refer to  the venues of arbitration be at NOIDA/New Delhi it relate only to the convenience of parties in holding arbitral hearings and does not in any way confer jurisdiction upon Delhi Courts. Thus in the light of an exclusive jurisdiction clause in relation to arbitration proceedings, which excludes the jurisdiction of all other Courts than the Court mentioned therein, the application would only lie before the High Court exercising jurisdiction over NOIDA, Uttar Pradesh and not before this Court.

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