India - Change of Seat of Arbitration by Mutual Agreement

The question whether exclusive jurisdiction of an Arbitration proceeding can be vested on the basis of the Seat of Arbitration irrespective of any cause of action having arisen at the place of the said seat has been debated now for some time before various Courts. The Hon’ble Supreme Court in its recent judgement pronounced on April 13, 2021 in Inox Renewables vs Jayesh Electricals  has finally settled the proposition holding that the Seat of Arbitration mutually agreed by the parties would vest exclusive jurisdiction in the Courts of the place of the Seat irrespective of whether any cause of action has arisen in the said place. The Hon’ble Supreme Court has further held that where the existing Seat of Arbitration is changed to another place, by a mutual agreement between the parties, the exclusive jurisdiction would also be changed and would vest with Courts at the changed Seat of Arbitration agreed by the Parties.    

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