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Beyond Clause – Why MSMED Act Determines Seat of Arbitration

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Judgment dated 10.9.2025 of the High Court at Bombay  (S) in Arbitration Petition (L) No.7358 of 2025 of GEA Westfalia Separator India Pvt Ltd  Vs.   SVS Aqua Technologies LLP with connected matters.

 

Award of MSME Facilitation Council Pune – Section 34 Petition in High Court – Jurisdiction

The petitioner is based in Vadodara and the respondent in Pune.  The respondent has manufactured and supplied under its Agreement from Pune.  Since the respondent is located in Pune, it was the Facilitation Council in Pune that statutorily had territorial jurisdiction for the arbitration that was actually conducted between the parties.

Clause 23 of the Agreement provided that any dispute arising out of or in connection with the contract shall be exclusively be referred to and finally resolved by arbitration in Mumbai.

However, the arbitration proceedings between the parties took place in accordance with the MSMED Act and the Award was passed under Section 18 of the Act.

Thus, the arbitration proceedings were conducted as a matter of statutory requirement in Pune.   Therefore, the statutory seat of arbitration is Pune.

 

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