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Issues: Whether, when the seat of arbitration is Mumbai, an exclusive jurisdiction clause conferring jurisdiction on the courts at Mumbai ousts the jurisdiction of all other courts, including the High Court of Delhi.
Analysis: The Arbitration and Conciliation Act, 1996 recognises party autonomy in choosing the place of arbitration. The juridical seat of arbitration identifies the court with supervisory control over the arbitral process. Once the seat is fixed, it operates in a manner analogous to an exclusive jurisdiction clause. The distinction between seat and venue is material: the seat denotes the legal home of the arbitration, while venue is only the place where hearings may be held. Where the agreement fixes Mumbai as the seat and also provides that disputes shall be subject to the exclusive jurisdiction of Mumbai courts, the courts at Mumbai alone have jurisdiction to the exclusion of all others.
Conclusion: The exclusive jurisdiction clause is effective and Mumbai courts alone have jurisdiction over the arbitral proceedings. The contrary view of the Delhi High Court was incorrect.
Ratio Decidendi: The court of the juridical seat of arbitration has exclusive supervisory jurisdiction over arbitral proceedings, and parties may validly confer exclusive jurisdiction on that court by agreement.
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