When Parties Cannot Agree Upon Rules Governing Arbitration, Independent Clause Conferring Exclusive Jurisdiction Prevails: Calcutta High Court

The Calcutta High Court has ruled that when parties cannot agree on rules governing arbitral proceedings in New Delhi, an independent clause conferring exclusive jurisdiction to Durgapur would prevail. This complex decision clarifies jurisdictional conflicts in arbitration, particularly when default rules are absent or disputed. The court emphasized that if a contract explicitly grants exclusive jurisdiction to a specific location (like Durgapur) for dispute resolution, that clause holds sway, even if the arbitration's procedural aspects are vaguely referenced elsewhere. This reinforces the importance of clear jurisdictional clauses in contracts, ensuring certainty in dispute resolution forums.