Appointing Arbitrator U/S 3(G)(5) Of National Highways Act Does Not Constitute Seat Of Arbitration, Is Rather A Convenient Venue: MP High Court

The Madhya Pradesh High Court has provided an important clarification regarding the seat of arbitration when an arbitrator is appointed under Section 3G(5) of the National Highways Act. The court ruled that such an appointment does not automatically fix the 'seat' of the arbitration. Consequently, this allows multiple courts, specifically those where the cause of action for the dispute arose, to exercise jurisdiction over the arbitration proceedings. This decision deviates from the general understanding that fixing a seat confers exclusive jurisdiction upon courts at that location, potentially offering parties more flexibility in choosing a forum for judicial intervention related to the arbitration.