The High Court of Delhi, by its judgement dated 01.07.2025 in M/s Viva Infraventure Pvt. Ltd. v. New Okhla Industrial Development Authority1 held arbitrator's discretion to determine the seat of arbitration cannot override the exclusive jurisdiction clause in the agreement.
In the present case, the dispute arose between the parties, and the sole arbitrator was appointed. The sole arbitrator by the procedural order changed the seat of the arbitration to Delhi from Gautam Budha Nagar. Thereafter, petition was filed seeking extension of the mandate of the sole arbitrator. New Okhla Industrial Development Authority argued that Delhi High Court does not have jurisdiction in the matter as the court of Gautam Budha Nagar has the exclusive jurisdiction as per the agreement between the parties.
The Court held where an agreement contains an exclusive jurisdiction clause covering the arbitration clause, the court identified in the exclusive jurisdiction clause will be deemed to have supervisory jurisdiction over the seat of arbitration. When the parties agree to vest exclusive jurisdiction in a particular court for any dispute arising out of the arbitration clause, it must be presumed that they intended that court only have supervisory control.
Footnote
1 O.M.P. (MISC.)(COMM.) 606 of 2024.
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