Jindal Coke Limited Vs Himadri Speciality Chemicals Limited (Delhi High Court)
The petition was filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator in disputes arising from a Memorandum of Understanding for Coal Tar dated 18.12.2024. Under the Agreement, the respondent agreed to purchase 1,200 metric tonnes (±20%) of crude coal tar per month from the petitioner’s plant at Jajpur, Odisha, for the period 01.01.2025 to 30.12.2025. The petitioner alleged failure by the respondent to issue purchase orders and raised demand notices, the last dated 03.06.2025 seeking payment of Rs. 1,72,29,838/-. The respondent denied the binding nature of the Agreement and informed about a civil suit filed in Calcutta seeking a declaration that the Agreement was not executed. Clause 14 of the Agreement provided for arbitration with venue at New Delhi, while Clause 13 stated that courts at Jajpur would have exclusive jurisdiction.
Read SC Judgment in this case: SC Dismisses Challenge to Arbitrator Appointment due to Parties’ Willingness to Arbitrate
The respondent objected to the maintainability of the petition on the ground that courts at Jajpur had exclusive jurisdiction. The Court examined the interplay between the jurisdiction clause and the arbitration clause. Relying on precedents including Yassh Deep Builders LLP v. Sushil Kumar Singh, Indus Mobile Distribution (P) Ltd. v. Datawind Innovations (P) Ltd., Swastik Gases (P) Ltd. v. Indian Oil Corporation Ltd. and Brahmani River Pellets Ltd. v. Kamachi Industries Ltd., the Court reiterated that designation of a venue of arbitration ordinarily amounts to the juridical seat unless there are contrary indications. The seat confers exclusive supervisory jurisdiction on courts of that place for arbitral proceedings. The arbitration clause was held to be distinct from the governing law and jurisdiction clause, and applicable specifically to arbitral proceedings. Consequently, the Court held that it had jurisdiction to entertain the petition. Finding that disputes had arisen and that the Agreement contained an arbitration clause, the Court appointed Ms. V. Mohana, Senior Advocate, as Sole Arbitrator. The arbitration will be conducted under the aegis of the Delhi International Arbitration Centre (DIAC), subject to its rules, and the arbitrator will file disclosure under Section 12(2). All rights and contentions of the parties were kept open.
