In a recent appeal against a judgment of Delhi High Court, the Supreme Court decided that when the seat of arbitration was Mumbai, a clause stating that the courts at Mumbai alone would have jurisdiction in respect of disputes arising under the agreement would oust all other courts.
In Indus Mobile Distribution Private Limited v Datawind Innovations Private Limited, Datawind, whose registered office was in Amritsar, Punjab, agreed to supply goods to Indus in Chennai from New Delhi. As per the arbitration clause in the agreement, the courts at Mumbai alone had jurisdiction in respect of disputes.
Payment disputes arose and Datawind filed two applications before Delhi High Court under the Arbitration and Conciliation Act, 1996 – one under section 11, for appointment of arbitrator, and another under section 9, seeking to restrain Indus from transferring, alienating or creating third party interest in its properties.
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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or bhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
