Seat of Arbitration: A Defining Factor

The “seat” of arbitration is a legal concept that determines the procedural law governing the arbitration. This is also known as the lex arbitri or the law of the arbitration. The choice of seat is critical because it directly affects the jurisdiction of the courts over the arbitration proceedings and the applicable procedural framework. For example, if the seat of arbitration is in India, Indian arbitration law, primarily governed by the Arbitration and Conciliation Act, 1996, will apply. This includes the rules for appointing arbitrators, challenging awards, and seeking judicial intervention. In India, courts at the seat of arbitration have the power to supervise and control the arbitral process, such as dealing with interim measures and enforcement of the arbitral award.

The “venue” of arbitration, on the other hand, refers to the physical location where the arbitration hearings take place. Unlike the seat, the venue does not necessarily have any legal consequences unless it is explicitly designated as the seat by the parties. In India, parties may choose different cities for the venue of arbitration depending on convenience, travel considerations, or availability of suitable facilities. For instance, parties may opt for Mumbai as the seat of arbitration but conduct hearings in Delhi for logistical reasons. The venue is important for practical reasons such as the accessibility of the tribunal, the availability of resources like transcription services, and the general comfort of the participants. 

Read The Full Article:  Why Your Arbitration Seat and Venue Matter