Summary
In this 1 May 2018 reference order, the Supreme Court sent the appeal concerning the seat and venue of an international commercial arbitration to a larger Bench. The agreement identified a venue but not expressly a seat, raising questions about the law governing post-award proceedings and Indian court jurisdiction. In light of decisions by Benches of differing strengths and the issues urged, the Court expressly declined to decide any question on merits and directed placement before the Chief Justice for constitution of the appropriate Bench.
Issues
- How the arbitral seat should be determined when the agreement specifies a venue but not a seat.
- Whether the recurring jurisdictional issues and authorities warranted consideration by a larger Bench.
Held
- The appeal arose from dismissal of the Union’s section 34 challenge for want of Indian court jurisdiction. The courts below had not examined the award’s merits. The Supreme Court’s present order did not itself affirm or reverse that jurisdictional conclusion. (¶¶ 4, 5, 6, 7, 8, 9, 10, 23, 24)
- The central question concerned the principles for determining the seat where the parties specified a venue, with consequences for the law governing post-award proceedings. Counsel also raised the effect of the contractual UNCITRAL Model Law reference and the continued relevance of earlier authorities. These were questions for determination, not holdings in this order. (¶¶ 17, 18, 19, 20, 21, 22, 24)
- Although the agreement’s terms were the primary reference for the seat-and-venue inquiry, the authorities of differing Bench strengths and recurring international-arbitration questions made a larger-Bench reference appropriate. The Court invoked Order VI Rule 2 of the Supreme Court Rules and left all issues open. (¶¶ 23, 24)
- The Registry was directed to place the appeal before the Chief Justice of India to constitute the appropriate Bench for hearing and disposal. (¶ 25)
Result
Appeal referred for hearing by an appropriate larger Bench. Registry to place the matter before the Chief Justice; no findings recorded on the merits of any issue.