Arbitration how does it takes place

Company Secretary

Dear All, while reading one contract I found that clause regarding disputes talks about settlement of dispute through Arbitration and sole arbitrators award shall be treated as final and concluding. however, in the next para , contract says that dispute under this contract shall be subject to jurisdiction of the Indian Courts at Mumbai /Delhi... Please confirm what does second para means here. I was under impression that when Arbitration comes into picture Courts jurisdiction does not matter... Please throw some light...

in certain cases the arbitration also can be challanged as enlisted in chapterVII as recourse against arbitral award in the arbitration act 1996(1)biased arbitrator, or despite the undertaking that he is neutral, but there is concrete proof of him being biased due to vested interest, or proved to be of unsound mind(2) subject matter is in contradiction of the law in force for the time being.(3)arbitral award is in conflict with public policy of india, and such other instances, it can be challanged in the court of local jurisdiction, secondly, for adjudication of the decree, and enforciablity of the decision, the local court is the jurisdiction


also refer section 9 of arbitration and conciliation act where court has powers to grant interim reliefs. further section 27 for court assistance in taking evidence. ...



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