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Indian Laws - Highlights / Catch Notes

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The Delhi High Court considered the validity of an arbitral ...


Arbitration jurisdiction clarified: Exclusive clauses crucial. Seat determines jurisdiction. Petition dismissed.

Case Laws     Indian Laws

June 3, 2024

The Delhi High Court considered the validity of an arbitral award and the jurisdiction of the Facilitation Council u/s 18 of the MSME Act. The key issue was the territorial jurisdiction of the Court to entertain the petition due to an exclusive jurisdiction clause in the agreement. The Court found no exclusive jurisdiction clause in the agreement, and as the arbitration proceedings took place in Pathankot, the seat of arbitration was deemed to be there. Citing precedents, the Court held that without an exclusive jurisdiction clause, the Court lacked jurisdiction, leading to the dismissal of the petition.

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