Lawstreet Journal

Seat of Arbitration is Decided as per Arbitration Agreement, Rules to be Applied Only After Commencement of Arbitration : Delhi High Court [READ JUDGMENT]

Lawstreet Journal 28 Sep 2021 8:12pm

Image courtesy: Lawstreet Journal Judiciary Seat of Arbitration is Decided as per Arbitration Agreement, Rules to be Applied Only After Commencement of Arbitration : Delhi High Court [READ JUDGMENT]

The Delhi High Court recently stated that the seat of arbitration is to be determined according to the arbitration agreement between the parties and that the Rules of Arbitration of the International Centre for Alternative Dispute Resolution will be applied only after the arbitration has begun before appropriate jurisdiction.

In other words, in cases where parties expressly choose the rules of an arbitral institution into their arbitration clause but fail to expressly agree on a "seat" of arbitration, the seat selection clause of the said institutional rules cannot be considered to have been knowingly chosen.

According to Justice Suresh Kumar Kait, 

"No doubt, the aforementioned Clause-26.3.1 of Article-26 of the Agreement dated 08.02.2017 stipulates that the arbitration shall be held in accordance with the Rules of ICADR, but shortly thereafter it follows the condition that the venue of arbitration shall be Lucknow. As a result, in the Court's considered opinion, the role of the ICADR Rules in terms of procedure shall come into play only after the arbitration begins before the appropriate jurisdiction of law, which in this case is Lucknow."

The Court was hearing a petition concerning an agreement between a construction company and the respondent, Construction and Design Services, a government undertaking that provides construction and design services.

The respondent had requested proposals for the design, engineering, procurement, and construction of a dedicated four-lane corridor for elderly and differently-abled people during the Kumbh and Magh Melas in Allahabad.

After the petitioner company was chosen as the successful bidder… Continue Reading...


Tagged: Law of Arbitration   Delhi High Court  
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