26 July 2021
Matter: Inox Renewables Limited v. Jayesh Electricals Limited
Order dated: 13 April 2021.
Summary:
A dispute arose between Inox Renewables Ltd. (“Inox”) and Jayesh Electricals Ltd. (“JEL”) and arbitration commenced under the purchase order which named ‘Jaipur’ as the venue. However, the parties had agreed to hold the proceedings at Ahmedabad. The award was passed in favour of JEL and was subsequently challenged by Inox in the commercial court at Ahmedabad. Inox argued that as the arbitration was held in Ahmedabad, the courts of Ahmedabad had exclusive jurisdiction to hear the challenge. The Ahmedabad court and subsequently, the Gujarat HC disagreed, and Inox approached the SC.
The SC found that the parties had mutually agreed to change the venue to Ahmedabad and observed that there was no need for this agreement to be in writing. Once Ahmedabad was mutually agreed as venue, it also became the ‘seat’ of the arbitration, so the courts of Ahmedabad had exclusive jurisdiction over any challenges.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
al@acuitylaw.co.in
