In Brief
The Supreme Court held that where parties to an international commercial arbitration designate London as the seat of arbitration and the arbitration agreement is governed by English law, Indian courts have no jurisdiction under Part I of the Arbitration and Conciliation Act, 1996. The designation of 'venue of arbitration shall be London' combined with reference to ICC Rules constitutes a designation of the juridical seat in London, functioning as an exclusive jurisdiction clause. The Court approved the principle from Shashoua v. Sharma that the seat of arbitration determines supervisory jurisdiction. The Court rejected contentions that filing an application in Indian courts implied waiver of the jurisdictional objection or that consent could confer jurisdiction. The High Court's order that Indian courts had jurisdiction was set aside.
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