In Brief
Brahmani River Pellets Limited entered into a contract with Kamachi Industries for sale of iron ore pellets, with an arbitration clause specifying Bhubaneswar as the venue. A dispute arose over price and payment terms. When Kamachi filed for arbitrator appointment before the Madras High Court, Brahmani challenged its jurisdiction on grounds that the parties had agreed to Bhubaneswar as the seat. The Supreme Court held that when parties designate a specific venue for arbitration, only courts at that place have exclusive jurisdiction to appoint arbitrators—the specification of venue operates as an exclusive jurisdiction clause. The Madras High Court erred in assuming jurisdiction, and the matter was remitted to the Orissa High Court.
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