2025ArbitrationHigh CourtLatestLegalSeptember 2025

Section 9 of the Arbitration Act – Territorial Incompetence

Section 9 – Arbitration Act – Stay to the invocation of Bank Guarantee

The appellant and the respondent no.1 had commercial transactions since 2012 and the last agreement dated 26.3.2020 was valid for three years. However, on11.1.2023, the MTNL informed the appellant to stop the registration and requested respondent nos.2 and 3 for encashment of BG

The appellant filed section 9 application for interim relief.  On 9.5.2024 he learned District Judge passed stay order.  However, it was subsequently vacated on the application of the respondent no.1 on the ground that it had no jurisdiction to entertain the applications.

Arbitration Clause of the agreements provided that in case of any dispute under this agreement, the courts at Delhi alone will have the exclusive jurisdiction.  The venue of the arbitration proceeding shall be the office at New Delhi.

HELD that in view of arbitration clauses of the agreements, the Delhi Courts alone have exclusive jurisdiction over the disputes in respect of Arbitration Act and also CPC.

Judgment dated 10.9.2025 of the Bombay High Court in Arbitration Appeal No.41 of 2024 of M/s. Pinnacle Teleservices Pvt Ltd  Vs.  Mahanagar Telephone Nigam Limited and others

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