Indus Mobile Distribution Private Limited v. Datawind Innovations Private Limited
Indus Mobile Distribution Private Limited v. Datawind Innovations Private Limited - Supreme Court Important Judgment 2017 -
On 19th April, 2017, in the case of Indus Mobile Distribution Private Limited v. Datawind Innovations Private Limited & Ors. [Civil Appeal Nos. 5370-5371 of 2017], the issue for consideration was as to whether, when the seat of arbitration was Mumbai, an exclusive jurisdiction clause stating that the courts at Mumbai alone would have jurisdiction in respect of disputes arising under the agreement would oust all other courts including the High Court of Delhi, whose judgment was appealed against.
It was held that “under the Law of Arbitration, unlike the Code of Civil Procedure which applies to suits filed in courts, a reference to “seat” is a concept by which a neutral venue can be chosen by the parties to an arbitration clause. The neutral venue may not in the classical sense have jurisdiction – that is, no part of the cause of action may have arisen at the neutral venue and neither would any of the provisions of Section 16 to 21 of the CPC be attracted.” The Supreme Court observed that in arbitration law the moment “seat” is determined, the fact that the seat is at Mumbai would vest Mumbai courts with exclusive jurisdiction for purposes of regulating arbitral proceedings arising out of the agreement between the parties.”