Parties Can Deviate From Terms Of Jurisdiction Under The Arbitration Clause Only Once: Madras High Court
The Madras High Court has ruled that the parties have got the liberty to deviate from the terms with respect to the jurisdiction, as contained in the Arbitration Clause; however, the number of such deviations is limited to only one. After certain disputes arose between the parties, the petitioner invoked the arbitration clause and filed an application under Section 11 of the A&C Act, seeking appointment of an Arbitrator before the Madras High Court. Thereafter, the petitioner filed a revision petition before the Madras High Court to strike off the petitions under Section 34 of the A&C Act on the file of the Principal District Court, Coimbatore. The petitioner added that the respondent had also chosen to file the petitions under the A&C Act before the Madras High Court, including an appeal under Section 37 against the order of the Arbitrator dismissing the respondent's preliminary objection disputing the jurisdiction of the Arbitral Tribunal. The Court accepted the contention of the petitioner that the Court referred to under Section 14 of the A&C Act would only mean the Principal District Court at Coimbatore and hence, the respondents by initiating proceedings under the A&C Act seeking termination of the mandate of the Arbitrator before the Madras High Court instead of the Courts in Coimbatore, had waived the jurisdiction of the Courts at Coimbatore.
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