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SC Clarifies Seat When Arbitration Clause Split Between Delhi & Goa

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Judgment dated of the  Supreme Court in SLP Civil No.35915 of 2025 of Arcis Clean Energy Pvt Ltd  Vs.  Parshva Innovation

Clause 32 of the Franchise Agreement dated 3.8.2023 provided for arbitration in two parts  – (i) the  precise location of arbitration shall be within Delhi & appointment of Sole Arbitrator shall be as per the Arbitration Act, 1996 and (ii) the arbitration proceedings wil be held in Goa in English language.

Thus, both the places of Delhi and Goa are specified for arbitration.

However, Clause 38 provided for the governing law and jurisdiction of competent Courts in Goa.

The High Court of Delhi appointed the Arbitrator with option to select venue in consultation wth the parties.

In that context and on consideration of the Agreement in entirety, the Supreme Court held that the juridical arbitration seat was at Goa and the Delhi High Court lacked jurisdiction to appoint Arbitrator.

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