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Tuesday, March 10, 2015

Sec.9 of Artbitration and conciliation Act - Jurisdiciton - Applys only to arbitration that takes place in India and has no application to arbitration which takes place out side of India =2015 S.C. msklawreports




Section 9 of the Act is limited  to
      the applications to arbitration that takes place in India and  has  no
      applicability to arbitration which takes place outside India  in  view
      of the pronouncement in  Bharat  Aluminium  Co.  v.  Kaiser  Aluminium
      Technical Services Inc.[1] inasmuch as clause 5 of the contract  which
      is the arbitration clause clearly spells out that the contract  is  to
      be governed and construed according to English law and if the  dispute
      of the claim does not exceed USD 50,000,  the  arbitration  should  be
      conducted in accordance with small  claims  procedure  of  the  London
      Maritime Arbitration Association.=
Apex court held that 
Therefore, we think it would be  appropriate  to  interpret
      the clause that it is a proper clause or substantial clause and not  a
      curial or a procedural one by which the arbitration proceedings are to
      be conducted and hence, we are disposed to  think  that  the  seat  of
      arbitration will be at London.
even
      applying the principles laid down in Bhatia International (supra)  and
      scanning the anatomy of the arbitration clause, we have arrived at the
      conclusion that the courts in India  will  not  have  jurisdiction  as
      there is implied exclusion. High court for different reason rightly set aside the order of District Judge -2015 S.C. msklawreports

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