SC: Electricity Dues over 2 Years Recoverable only if Shown Continuously as Outstanding  ||  Allahabad HC Criticises UP Govt for Using Goondas Act as a ‘Tool of Oppression’  ||  Gujarat HC: Complaint Made in Good Faith does not Amount to Defamation  ||  Allahabad HC: Bar Association Membership Disputes Are Private, Outside Writ Jurisdiction  ||  P&H HC: Section 147A Income Tax Act Unconstitutional; Legislature Can’t Override Court Findings  ||  Karnataka HC: Refusing to Return Child’s Volleyball, Asking for Parent Not Abetment of Suicide  ||  Can an IBC Resolution Plan Survive the Death of its Proponent? NCLAT Answers  ||  Supreme Court: Rape Conviction Possible Without S.376 Charge if POCSO Case Fails on Age Proof  ||  SC: Mere Long Possession Can't Establish Adverse Possession; Hostile Intent is Required  ||  Supreme Court Finds Gaps in FSSAI’s Proposed Warning Labels for Foods High in Fat, Sugar and Salt    

Vasudev Garg and Ors. Vs. Embassy Commercial Projects (Whitefield) Private Limited and Ors. - (High Court of Delhi) (31 Oct 2023)

Principles of Section 20 of CPC do not apply to the arbitration proceedings

MANU/DE/7309/2023

Arbitration

Present petition is filed by the Petitioner under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim relief from this Court to restrain the Respondents from carrying out any construction/development activity based on the illegal Modified Development Plan dated 27th October, 2022; unilateral appointment of Alotech as Co-developer; unilateral amendment of development schedule and budget of Whitefield project and doing anything which shall be detrimental to the interests of both the Petitioners and the project.

The facts show Mumbai is indicated as a place of arbitration in Clause 17.1 of agreement. It does not say Mumbai and Delhi, both shall be the places of arbitration, hence there is no confusion qua the place of arbitration. Further, there is no contrary indicator in the agreement that any other place other than Mumbai shall have the jurisdiction in case of arbitration. Interestingly, clause 21.3 is made subject to clause 17.1. Thus, even if there is conflict amongst clauses 17.1 and 21.3; then clause 17.1 shall prevail. Clause 17.1 is in line with Section 20(1) of the Arbitration and Conciliation Act, hence there is no chance of any misunderstanding.

The crux is when as per clause 17.1,the parties have agreed to conduct arbitration as per SIAC at Mumbai, then their intention to designate Mumbai as a seat of arbitration is evident from clause 17.1; reinforced as per clause 21.3. There exists no contrary indication to designate any other seat of arbitration. The cause of action has no relevance in the facts and circumstances and hence only the Courts at Mumbai shall have supervisory jurisdiction.

In Talwar Auto Garages Private Limited vs. VE Commercial Vehicles Limited, it was held only such Courts shall have the jurisdiction under Section 11 of Arbitration and Conciliation Act where the seat of arbitration is located.

Therefore, to conclude, Clause 21.3, cannot be construed to infer any intention that Delhi also, apart from Mumbai, was meant to be seat of arbitration. It is now a settled law that principles of Section 20 of Code of Civil Procedure, 1908 (CPC) do not apply to the arbitration proceedings, hence accrual of cause of action, howsoever trivial or significant, would not make Delhi a seat of arbitration.The petition lacks Delhi jurisdiction and is thus liable to be dismissed.

Tags : JURISDICTION   CLAUSE   APPLICABILITY  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved