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Abstract

The current seat versus venue controversy in Indian arbitration is rooted in differing judicial opinions regarding whether an exclusive jurisdiction clause qualifies as contrary indicia. While this debate often appears to reflect uncertainty in the law, much of the difference in opinion actually arises from the distinct factual matrices and contractual formulations before the different courts. Internationally, however, there has been consensus on the difference between the two terms and their efficacy. Over the years, the Supreme Court of India (SCI) has formulated, reiterated, and confirmed that venue in arbitration clauses, in the absence of an explicit clause identifying the seat, should be construed as seat to identify which national court should have jurisdiction. It has, while doing so, carved out an exception called ‘contrary indicia’. While various high courts have, in principle, agreed with the SCI that venue can be interpreted as the seat, they have been at loggerheads as to what constitutes contrary indicia and when it should be applied. Despite the continuing debate of seat versus venue, cases or legal literature have not delved deep into the meaning of contrary indica. This article thus takes a novel approach to understanding what contrary indicia means and, for the first time in the Indian context, argues that its contours do not begin and end with an exclusive jurisdiction clause. While doing so, the article also highlights the divergent views of the high courts in India and ultimately suggests an ingenious way forward. This paper thus seeks to peel off the layers of contrary indicia to expand its scope and suggests best practices to follow while dealing with seat and venue issues in order to aid consistency in decision-making.

Digital Object Identifier (DOI)

https://doi.org/10.55496/FIKV5225

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