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Arcis Clean Energy Pvt. Ltd. v. Parshva Innovation

Civil Appeal · 2026 INSC 1109Decided 12 Oct 2026
Civil Appeal arising out of SLP (Civil) No. 35915 of 2025
Justice Manoj Misra · Justice Vijay Bishnoi

Background

A dispute arose under a Franchise Agreement whose arbitration clause named both Delhi and Goa in connection with arbitration proceedings. The Delhi High Court, exercising its power under Section 11(6) of the Arbitration and Conciliation Act, 1996, appointed an arbitrator to resolve the dispute, effectively treating itself as having jurisdiction over the matter.

Decision Breakdown

The Supreme Court examined the Agreement as a whole to determine which city was the true "juridical seat" of arbitration, as opposed to merely a convenient venue for hearings, and concluded, based on the Agreement's language and structure, that Goa was the juridical seat. Since the juridical seat determines which court has supervisory jurisdiction over the arbitration, the Court held that the Delhi High Court lacked jurisdiction to have entertained the Section 11(6) application in the first place. It set aside the High Court's order and left the parties free to pursue the correct remedy before the appropriate court.

Lesson Learnt

When a contract's arbitration clause mentions more than one city, the courts look at the agreement as a whole to work out which one is the true legal "seat" of the arbitration, only the court with jurisdiction over that seat can supervise the arbitration, regardless of where hearings might otherwise be convenient.

Official source (sci.gov.in)View Judgment (PDF)

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