[Seat vs Venue] Bombay High Court Upholds Arbitrator's Discretion To Change Venue Of Arbitral Proceedings

The Bombay High Court upheld an arbitrator’s discretion to change the venue of arbitration proceedings, even if the venue is specified in the agreement. The court ruled that the arbitrator could shift the venue if conducting proceedings at the agreed venue would be detrimental to the arbitration process. The case involved a dispute where the agreed venue was Dhule, but the arbitrator chose Aurangabad for convenience. The court noted that Section 20 (3) of the Arbitration and Conciliation Act allows the tribunal to meet at any place it considers appropriate, thus supporting the arbitrator’s decision.