In Brief
This case concerned whether an exclusive jurisdiction clause designating Mumbai courts, combined with a designated arbitration seat at Mumbai, could oust the jurisdiction of the Delhi High Court. The Supreme Court held that once a seat of arbitration is designated, it operates as an exclusive jurisdiction clause, vesting supervisory authority exclusively in the courts of that seat. The Court clarified that the juridical seat is the centre of gravity of arbitration proceedings and determines which court has supervisory powers, independent of where the cause of action arose or where traditional civil procedure would grant jurisdiction. Accordingly, Mumbai courts alone had jurisdiction over arbitration matters between the parties.
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