{"id":253150,"date":"2021-08-24T11:00:25","date_gmt":"2021-08-24T05:30:25","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=253150"},"modified":"2021-08-27T10:27:30","modified_gmt":"2021-08-27T04:57:30","slug":"arbitration-5","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/24\/arbitration-5\/","title":{"rendered":"J&#038;K and Ladakh HC | \u201cSpecific mention of particular Court at particular place excludes jurisdiction of other courts\u201d, says HC while addressing syllogistic issue of \u2018venue\u2019 and \u2018seat\u2019 of arbitration"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Jammu &amp; Kashmir and Ladakh High Court: <\/strong>Tashi Rabstan, J., while addressing the syllogistic issue of \u2018venue and \u2018seat\u2019 of arbitration dismissed the appeal challenging the dismissal order of District Court refusing to entertain a petition under Section 9 of Arbitration and Conciliation Act, 1996. The Bench opined that,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\">Where the contract specifies the jurisdiction of the court at a particular place, only such court will have the jurisdiction to deal with the matter and parties intended to exclude all other courts.<\/span><\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The instant appeal had been preferred by the petitioner under Section 37 of the Act, 1996 against the order of the Additional District Judge, whereby the court below without touching the merits of the case dismissed the petition of appellant filed under Section 9 of the Act on the ground that it lacked jurisdiction to adjudicate upon the matter. The petitioner-appellant was seeking to grant temporary prohibitory injunction restraining the respondents from appointing a new Master Franchisee of DRS-Kids for the UT of J&amp;K in place of petitioner-appellant as well as from interfering in petitioner\u2019s functioning as Master Franchisee of DRS-Kids for whole of erstwhile State of J&amp;K.<\/p>\n<h3 style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Background<\/strong><\/span><\/h3>\n<p style=\"text-align: justify;\">The facts-in-brief were that an agreement of franchisee dated 06-12-2007 was entered into between the petitioner and the DRS Vidya Samiti, a society, whereby, the appellant agreed to be appointed as franchisee of the DRS Vidya Samiti to establish and operate pre-school under the brand name \u201cDRS Kids\u201d within 3 kms radius of Trikuta Nagar, Jammu. Thereafter, the petitioner-appellant was appointed as the Master Franchisee by DRS Education Pvt. Ltd. vide contract dated 13-12-2008 vesting in petitioner the rights to identify potential areas for establishing new DRS Kids pre-schools within the whole erstwhile State of J&amp;K. As per the agreement, the life of the master franchisee was fixed for 10 years from the date of agreement which was extendable for a further period on mutually agreed terms and conditions.<\/p>\n<p style=\"text-align: justify;\">The petitioner-appellant submitted that on realizing that the appellant was able to open up 14 franchisee schools in Jammu alone, respondent 2 turned greedy and started devising ways to oust the appellant from the aforesaid agreement by replacing her. In anticipation of that, the appellant secured an interim relief from the court of Additional Munsiff, Jammu in suit titled <em>Supinder Kour v. MDN Edify Education Pvt. Ltd<\/em>., whereby the respondents were restrained from advertising, admitting children\/students, opening and operating a pre-school in six km area from the border of Trikuta Nagar, Jammu. The suit was subsequently withdrawn by the appellant pursuant to a compromise arrived at between the parties.<\/p>\n<p style=\"text-align: justify;\">The petitioner-appellant argued that the dismissal of the application under Section 9 of the Act on the point of jurisdiction was not sustainable as the Master Franchisee Agreement was executed in Jammu; the appellant\u2019s area to act as Master Franchisee was in Jammu; the franchisee schools were operating in Jammu; the dispute with respect to the Master Franchisee agreement arose in Jammu; the post-dispute reconciliation proceedings\/meetings were conducted in Jammu; the earlier litigation between the parties was in Jammu Court; the cause of action accrued to the appellant at Jammu and the subject-matter situate within the jurisdiction of the principal Civil Court of original jurisdiction.<\/p>\n<p style=\"text-align: justify;\">It was further argued by the petitioner-appellant that section 20 of the Act classifies two places viz., \u2018seat of arbitration\u2019 and \u2018venue of arbitration\u2019, whereas the arbitration clause only refers the venue of arbitration to be at Hyderabad. She, thus, argued that where only the venue had been specified and seat of arbitration not determined, it is indisputably the cause of action\/subject matter which would determine the jurisdiction of the courts as referred to in section 9 of the Act. Therefore, it was argued that the respondents could not oust the jurisdiction of the courts at Jammu with respect to cause of action and the situation of the subject matter.<\/p>\n<h3 style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Analysis and Opinion <\/strong><\/span><\/h3>\n<p style=\"text-align: justify;\">In terms of Clause-27 of the agreement dated 06-12-2007, any dispute or differences arising out of or in connection with this agreement shall be finally settled in arbitration proceedings to be conducted at Hyderabad in accordance with the Arbitration and Conciliation Act, 1996. Further, in the said clause it had been specifically provided that the Courts at Hyderabad in Andhra Pradesh shall have exclusive jurisdiction under this agreement.\u00a0 Similarly, Clause 13 of Master Franchise Agreement dated 13-12-2008 stated the following:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201c13. GOVERNING LAW AND DISPUTE RESOLUTION<\/p>\n<p style=\"text-align: justify;\"><em>13.1 This agreement is made under and shall be governed by and construed for all purposes in accordance with the laws of India and subject to arbitration. However, the courts at Hyderabad shall have exclusive jurisdiction. <\/em><\/p>\n<p style=\"text-align: justify;\"><em>13.2 Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity hereof, shall be settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996 (or any statutory amendment thereof) as in force as at that date before a sole arbitrator appointed by the Franchisor. The venue of arbitration shall be Hyderabad.\u201d<\/em><\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">Civil Appeal No.5850\/2019 decided on 25.07.2019 (supra):<\/p>\n<p style=\"text-align: justify;\">Reliance was placed by the Court on the similarly placed decision of the Supreme Court in <em>Brahmani River Pellets Ltd. v. Kamachi Industries Ltd., <\/em>wherein appellant challenged the jurisdiction of the Madras High Court on the ground that the parties had agreed that Seat of arbitration be Bhubaneswar and therefore, only the Orissa High Court has exclusive jurisdiction to appoint the arbitrator. The Madras High Court vide impugned order appointed a former judge of the Madras High Court as the sole arbitrator by holding that mere designation of \u201cSeat\u201d by parties does not oust the jurisdiction of other courts other than at the Seat of arbitration. The High Court held that in absence of any express clause excluding jurisdiction of other courts, both the Madras High Court and the Orissa High Court will have jurisdiction over the arbitration proceedings. Resolving the dispute, the Supreme Court held that,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><em>\u201cWhere the contract specifies the jurisdiction of the court at a particular place, only such court will have the jurisdiction to deal with the matter and parties intended to exclude all other courts. In the present case, the parties have agreed that the \u201cvenue\u201d of arbitration shall be at Bhubaneswar. Considering the agreement of the parties having Bhubaneswar as the venue of arbitration, the intention of the parties is to exclude all other courts&#8230;<\/em><\/p>\n<p style=\"text-align: justify;\"><em>When the parties have agreed to have the \u201cvenue\u201d of arbitration at Bhubaneswar, the Madras High Court erred in assuming the jurisdiction under Section 11(6) of the Act. Since only Orissa High Court will have the jurisdiction to entertain the petition filed under Section 11(6) of the Act, the impugned order is liable to be set aside.\u201d <\/em><\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">In the view of the above, the Bench opined that perusal of Clause-27 of the agreement and clauses 13.1 and 13.2 of Master Franchise Agreement specifically provided that the courts at Hyderabad shall have exclusive jurisdiction for all purposes in accordance with the laws of India and subject to arbitration, which belied the claim of the petitioner-appellant that the court\u2019s jurisdiction had not been determined in the agreement. Not only this, but the arbitration clause also referred the venue of arbitration proceedings to be at Hyderabad.<\/p>\n<h3 style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Verdict<\/strong><\/span><\/h3>\n<p style=\"text-align: justify;\">Thus, opining that the decision of Supreme Court clearly clinches the issue, the Bench held that the impugned order did not require any interference. Accordingly, the appeal was dismissed.[Supinder Kour v. MDN Edify Education Pvt. Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/ApqN4LZV\"><b>2021 SCC OnLine J&amp;K 594<\/b><\/a>, decided on 20-08-2021]<\/p>\n<hr \/>\n<p><span style=\"color: #003366;\">Kamini Sharma, Editorial Assistant has reported this brief.<\/span><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Appearance by: <\/strong><\/p>\n<p style=\"text-align: justify;\">For the Appellant: Sr. Advocate Vikram Sharma with Advocate Sachin Dev Singh<\/p>\n<p style=\"text-align: justify;\">For the Respondents: Advocate Rajesh Ranjan<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jammu &amp; Kashmir and Ladakh High Court: Tashi Rabstan, J., while addressing the syllogistic issue of \u2018venue and \u2018seat\u2019 of arbitration dismissed <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[3226,2554,29785,30034],"class_list":["post-253150","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-arbitration","tag-Jurisdiction","tag-law","tag-venue"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>J&amp;K and Ladakh HC | \u201cSpecific mention of particular Court at particular place excludes jurisdiction of other courts\u201d, says HC while addressing syllogistic issue of \u2018venue\u2019 and \u2018seat\u2019 of arbitration | SCC Times<\/title>\n<meta name=\"description\" content=\"Arbitration\" \/>\n<meta name=\"robots\" content=\"index, follow, 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discretion to fix venue\/seat of arbitration cannot override parties\u2019 exclusive jurisdiction clause in arbitration agreement: Delhi HC","author":"Editor","date":"July 7, 2025","format":false,"excerpt":"When parties agree to vest exclusive jurisdiction in a particular court for any dispute arising out of the arbitration clause, it must be presumed that they intended that court only to have supervisory control.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"arbitrator's discretion seat of arbitration","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/07\/arbitrators-discretion-seat-of-arbitration.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/07\/arbitrators-discretion-seat-of-arbitration.webp?resize=350%2C200&ssl=1 1x, 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seat is also said to be at Ranchi. Thus, Ranchi court is having jurisdiction.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Jharkhand High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Jharkhand-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Jharkhand-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Jharkhand-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/10\/Jharkhand-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":334821,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/11\/11\/seat-of-arbitration-determination-of-express-designation-agreement-sc-legal-news\/","url_meta":{"origin":253150,"position":2},"title":"Express designation of place in an arbitration agreement is an appropriate criterion to determine Seat of Arbitration: SC","author":"Sucheta","date":"November 11, 2024","format":false,"excerpt":"The Court clarified that the \u2018Closest Connection Test\u2019 for determining the seat of arbitration is no longer a viable criterion for determination. The seat of arbitration cannot be determined by formulaic and unpredictable application of choice of law rules based on abstract connecting factors to the underlying contract.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Seat of Arbitration","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/11\/Seat-of-Arbitration.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/11\/Seat-of-Arbitration.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/11\/Seat-of-Arbitration.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/11\/Seat-of-Arbitration.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":322374,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/05\/17\/dhc-rejects-petition-for-arbitration-due-to-lack-of-jurisdiction-legal-news\/","url_meta":{"origin":253150,"position":3},"title":"\u2018Seat of arbitration is the place where arbitral proceedings are anchored\u2019; Delhi High Court rejects petition filed u\/s 34 of Arbitration Act","author":"Editor","date":"May 17, 2024","format":false,"excerpt":"The Delhi High Court says that the seat of the arbitration is to be determined based on arbitral proceedings and not with cause of action for underlying disputes.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":203997,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/10\/20\/change-of-venue-different-from-change-of-seat-of-arbitration-exercise-of-jurisdiction-under-section-34-ac-act-declined-for-seat-being-at-london-del-hc\/","url_meta":{"origin":253150,"position":4},"title":"Change of &#8216;venue&#8217; different from change of &#8216;seat&#8217; of Arbitration; exercise of jurisdiction under Section 34 A&#038;C Act declined for &#8216;seat&#8217; being at London: Del HC","author":"Bhumika Indulia","date":"October 20, 2018","format":false,"excerpt":"Delhi High Court:\u00a0A Single Judge Bench comprising of Navin Chawla, J., declined to exercise jurisdiction in entertaining a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 holding the\u00a0seat\u00a0Arbitration to be in London. The petition was filed under Section 34 in a matter arising out of a\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":301383,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/13\/rajasthan-hc-seat-of-arbitration-has-exclusive-jurisdiction-for-applications-filed-u-s-11-of-the-ac-act-legal-news\/","url_meta":{"origin":253150,"position":5},"title":"Seat of arbitration once fixed by the arbitration agreement, has the exclusive jurisdiction for applications u\/s 11 of the A&amp;C Act, 1996: Rajasthan High Court","author":"Editor","date":"September 13, 2023","format":false,"excerpt":"\u201cThe Court observes that the \u2018contrary indicia\u2019 is clearly reflected in the present case, because the seat was mentioned as Bikaner and venue was mentioned as New Delhi.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"rajasthan high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/253150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=253150"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/253150\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=253150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=253150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=253150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}