Judgment
Supreme Court clarifies role of exclusive jurisdiction clause in determining juridical seat
A bench comprising Justice Manoj Misra and Justice Vijay Bishnoi ruled that when an arbitration agreement specifies two potential locations, a concurrent exclusive jurisdiction clause designating one of those places serves as the determining factor for the juridical seat of arbitration.
Explanation in simple terms
- What:
- The Supreme Court decided which city serves as the official home for arbitration proceedings.
- Who:
- Arcis Clean Energy Pvt. Ltd. and Parshva Innovation are the parties involved, and Justice Manoj Misra and Justice Vijay Bishnoi are the judges on the Supreme Court bench.
- When:
- Reported on 13 Oct 2026.
- Why:
- The court ruled that if an agreement lists two potential locations, a clause naming one specific place as the exclusive legal authority decides the seat.
- What it means:
- This clarifies that the exclusive jurisdiction clause is the deciding factor for determining the legal seat of arbitration.
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