Facts
The Petitioner filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of a sole arbitrator based on a contract dated 20.01.2017
Source reference: para. 1Clause 9.2.5(a) of the Special Conditions of Contract stipulated that arbitration proceedings would be held in Delhi
Source reference: para. 2The Petitioner invoked arbitration via legal notice on 20.03.2023
Source reference: para. 3The Respondent raised preliminary objections, arguing that the Delhi High Court lacked jurisdiction because the contract was executed in Bihar, the stamp paper was purchased there, and the entire scope of work was performed in Bihar
Source reference: paras. 5-6the Respondent contended that the claims were barred by limitation
Source reference: para. 7Issues
1. Whether the designation of "Delhi" as the venue in the arbitration agreement, in the absence of contrary indicia, constitutes the juridical seat of arbitration for the purposes of jurisdiction
Source reference: paras. 8, 102. Whether the Court, while exercising jurisdiction under Section 11(6) of the Act, should adjudicate on the issue of limitation
Source reference: paras. 8, 11-12Law Applied
Section 11(6) of the Arbitration and Conciliation Act, 1996, which governs the appointment of arbitrators
Source reference: para. 1where a venue is designated without any contrary indicia, that venue is treated as the juridical seat
Source reference: para. 10the Referral Court's role is confined to a prima facie examination of the existence of the arbitration agreement
Source reference: paras. 12-13Under the principle of competence-competence, issues such as limitation and "accord and satisfaction" are mixed questions of law and fact reserved for the Arbitral Tribunal under Section 16
Source reference: paras. 11, 14Reasoning
The Court reasoned that since Clause 9.2.5(a) expressly designated Delhi as the venue and the agreement contained no "significant contrary indicia," Delhi must be regarded as the juridical seat, thereby vesting the Delhi High Court with jurisdiction
Source reference: para. 10The Court held that its jurisdiction is "extremely circumscribed" and limited to verifying the prima facie existence of a valid arbitration agreement
Source reference: paras. 13-14the Arbitrator, rather than the Referral Court, is the competent authority to adjudicate the plea of limitation and other contentious factual or legal issues
Source reference: paras. 14-15Holding
The Court allowed the petition and appointed Mr. Shiv Ram, Advocate, as the sole arbitrator
The Court held that Delhi is the juridical seat of the arbitration
Source reference: para. 10all contentions regarding limitation and the merits of the claims remain open for adjudication by the learned Arbitrator
Source reference: para. 21The petition was disposed of with a direction to share arbitral costs equally between the parties
Source reference: para. 20Original Court PDF
Technocrats Advisory Services Pvt. Ltd.vsMinistry Of Road, Transport And Highways & Anr.
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