Arbitration Clause Prevails Over Exclusive Jurisdiction Clause, Court At Designated Seat Retains Jurisdiction: Delhi High Court

Delhi HC upholds arbitration clause over exclusive jurisdiction clause, affirming the designated seat court’s authority in contractual disputes. The Delhi High Court ruled that an arbitration clause, which specifies a seat of arbitration, takes precedence over a general exclusive jurisdiction clause mentioned in the same contract. The court clarified that once a seat of arbitration is designated, the courts at that seat automatically gain exclusive jurisdiction over all matters pertaining to the arbitration agreement, including interim reliefs and challenges to the award. This judgment reinforces the autonomy of arbitration and promotes predictability in the enforcement of arbitration agreements.