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Exclusive jurisdiction clauses and seat selection under Indian arbitration law: critique of the Delhi High Court in Kings Chariot, Supreme Court guidance, and drafting lessons

Published on: 05 November 2024

Published by a LexisNexis Arbitration expert

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Article summary

Kings Chariot v Tarun Wadhwa ARB.P. 421/2024

The parties’ contract included an arbitration clause providing that any dispute between them would be referred to arbitration, with the arbitrator to be chosen by mutual consent. Another clause contained in an annexure to the contract declared that all disputes were subject to Delhi jurisdiction only. Disputes arose between the parties, after which the Petitioner triggered arbitration and moved the DHC under section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act), seeking the appointment of an arbitrator. The respondent contended that the DHC lacked jurisdiction because the cause of action lay in Madhya Pradesh, where the agreement was executed and where the respondent maintained its place of business. The DHC declined to entertain the matter and refused to exercise jurisdiction, concluding that the contract’s jurisdiction clause was merely a general jurisdictional stipulation and could not, in any event, be construed as identifying the seat or the venue for the purposes of the arbitration. The parties’ agreement did not, in any other respect, specify any seat of arbitration...

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