Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

Place of Arbitration and Seat under Section 20

Updated 11 October 2026 · Fact-checked

Under Section 20 of the Arbitration and Conciliation Act, 1996, parties are free to agree the place of arbitration. If they do not, the tribunal decides, having regard to the circumstances, including the convenience of the parties. The tribunal may still hold meetings or hearings elsewhere unless the parties agree otherwise.

Understand Place of Arbitration and Seat

Every arbitration needs a legal home. The place of arbitration is that home. It decides which courts supervise the arbitration and which country's arbitration law governs the procedure. Section 2(2) says Part I of the Act applies where the place of arbitration is in India.

Section 20 gives you three rules. First, the parties are free to agree the place (Section 20(1)). Second, if they have not agreed, the arbitral tribunal determines it, having regard to the circumstances of the case, including the convenience of the parties (Section 20(2)). Third, despite the first two rules, the tribunal may, unless the parties have agreed otherwise, meet at any place it considers appropriate. It can do so for consultation among its members, for hearing witnesses, experts or the parties, or for inspecting documents, goods or other property (Section 20(3)).

This leads to the seat versus venue distinction, which courts have developed. The seat is the legal place of arbitration. It anchors the proceedings to a legal system and decides the supervisory courts. The venue is simply where hearings or meetings are physically held. Section 20(1) and 20(2) deal with the place in the sense of seat. Section 20(3) deals with convenient meeting locations, which are venue in the practical sense. Moving a hearing to another city under Section 20(3) does not change the seat.

The Supreme Court's BALCO decision (Bharat Aluminium Co. v. Kaiser Aluminium Technical Services) is the case students usually cite for this seat-centric view. Its broad point is that the seat of arbitration decides the application of Part I, and Part I applies to arbitrations seated in India. Cite it by name and give this broad point only. Do not add details you cannot recall with certainty.

Compare the conciliation rule. Under Section 69(2), where parties have not agreed the place for meetings with the conciliator, the conciliator decides it after consulting the parties. In arbitration, the tribunal decides without that express consultation requirement, but it must consider the circumstances, including party convenience.

Key rules to remember

Party autonomy on place: Section 20(1): parties are free to agree the place of arbitration; The agreement comes first. The tribunal acts only if there is no agreement.
Tribunal's determination: Section 20(2): no agreement → tribunal decides, having regard to circumstances, including convenience of parties; Convenience is one factor. The text says 'including', so other circumstances count too.
Meeting elsewhere: Section 20(3): unless otherwise agreed, tribunal may meet at any place it considers appropriate; Purposes: consultation among members, hearing witnesses, experts or parties, inspecting documents, goods or property.
Applicability of Part I: Section 2(2): Part I applies where the place of arbitration is in India; This is why the place or seat matters. The proviso extends sections 9, 27 and 37(1)(a) and 37(3) to certain international commercial arbitrations seated outside India, subject to contrary agreement.
Seat vs venue: Seat = legal place deciding supervisory courts; Venue = physical location of hearings; A judicial concept. Section 20(3) hearings elsewhere do not shift the seat.

How to solve Place of Arbitration and Seat questions

Use this method for any question on place, seat or venue of arbitration.

1Read the facts and find whether the parties agreed on a place or seat in the arbitration clause or a separate agreement.
2If they did, apply Section 20(1). The agreed place stands and the tribunal cannot override it.
3If they did not, apply Section 20(2). The tribunal decides, considering the circumstances and the convenience of the parties.
4Check whether the question is about holding a particular hearing or inspection elsewhere. If so, apply Section 20(3) and note the words 'unless otherwise agreed by the parties'.
5Separate seat from venue. State which one the facts describe and what follows for the supervisory courts.
6Link the result to Section 2(2): if the place is in India, Part I applies.
7Write a clear conclusion in one or two lines and state the section relied on.

Quickest way: Three-question check

When to use it: Use it when you have limited time or a short-answer question.

Did the parties agree a place? If yes, Section 20(1) governs.
If no, the tribunal decides under Section 20(2) with convenience in mind.
Is it only a meeting or hearing location? Section 20(3) allows it unless the parties agreed otherwise, and the seat stays unchanged.

Common mistakes in Place of Arbitration and Seat

Saying the tribunal always decides the place of arbitration.
Students remember the tribunal's power and forget that it is only a fallback.
Fix: Write that the parties' agreement comes first under Section 20(1). The tribunal decides only failing agreement.
Treating seat and venue as the same thing.
Section 20 uses only the word 'place', so the distinction seems unimportant.
Fix: Define both. Seat is the legal place deciding supervisory courts. Venue is where hearings physically happen.
Believing a hearing in another city changes the seat.
Students read Section 20(3) as a power to change the place.
Fix: Say that Section 20(3) only lets the tribunal meet elsewhere for specified purposes. It does not change the place of arbitration.
Omitting 'unless otherwise agreed by the parties' in Section 20(3).
Students memorise the power but skip the condition.
Fix: Always include the condition. If the parties have restricted meeting places, the tribunal must follow that.
Confusing Section 20 with Section 69 on conciliation.
Both deal with place and look similar.
Fix: Remember that in conciliation the conciliator fixes the meeting place after consulting the parties. In arbitration the tribunal fixes the place having regard to circumstances and party convenience.

Worked examples

Example 1

Anand Textiles Ltd (Surat) and Bhavani Exports Pvt Ltd (Chennai) have an arbitration clause that names no place. The tribunal is constituted. Anand wants Surat, Bhavani wants Chennai. The tribunal's members live in Mumbai and most witnesses are in Pune. Who decides the place, and how?

Show the solution

The clause names no place, so there is no agreement under Section 20(1) unless the parties later agree one.
Failing agreement, Section 20(2) lets the arbitral tribunal determine the place.
The tribunal must have regard to the circumstances of the case, including the convenience of the parties.
Here, the tribunal can weigh the location of the witnesses and documents and the parties' convenience, and may choose a neutral place such as Mumbai or Pune.
If Part I applies because the chosen place is in India, Section 2(2) makes the Act's Part I applicable.

Answer: The tribunal decides under Section 20(2), unless the parties agree a place themselves. It must consider the circumstances, including party convenience, and cannot simply follow the preference of one side.

Example 2

An arbitration agreement between Kaveri Infra Ltd and Delhi Steels Pvt Ltd fixes Delhi as the place of arbitration. For the convenience of a witness, the tribunal wants to record that witness's evidence in Bengaluru. Can it do so, and does this alter the place of arbitration?

Show the solution

The parties agreed Delhi, so Section 20(1) fixes the place of arbitration and the tribunal cannot change it.
Section 20(3) applies notwithstanding Sections 20(1) and 20(2). Unless the parties have agreed otherwise, the tribunal may meet at any place it considers appropriate for hearing witnesses.
Check the agreement. It names only the place and does not forbid hearings elsewhere, so the condition 'unless otherwise agreed' is not triggered.
Bengaluru is therefore a venue for that hearing. The place (seat) remains Delhi.

Answer: Yes, the tribunal can hear the witness in Bengaluru under Section 20(3), unless the parties have agreed otherwise. The place of arbitration remains Delhi, since only the hearing location changes.

Exam tips

Quote the sub-section. Writing 'Section 20(2)' or 'Section 20(3)' earns more than writing 'Section 20'.
Always write the order: party agreement first, tribunal's decision second, meetings elsewhere third.
Define seat and venue in two lines each and name BALCO as the case for the seat concept, without adding detail you are unsure of.
In a case question, state the fact, apply the provision, then conclude. Mention Section 2(2) when the question asks which law applies.
Elective papers are open book, so mark Section 20 and Section 2(2) in your copy. You still need to apply them to the facts.

Practice questions from Arbitration: Introduction, Agreements and its Institutions

Place of Arbitration and Seat: frequently asked questions

What does Section 20 of the Arbitration and Conciliation Act say?

It lets the parties agree the place of arbitration. If they do not, the tribunal determines it, considering the circumstances and the convenience of the parties. The tribunal may also meet elsewhere for consultation, hearings or inspections unless the parties have agreed otherwise.

What is the difference between seat and venue of arbitration?

The seat is the legal place of arbitration. It decides which courts supervise the arbitration. The venue is just where meetings or hearings are physically held. Holding a hearing at another venue does not change the seat.

Why is the BALCO judgment important for seat of arbitration?

It is the Supreme Court decision on which students rely for the seat-centric view. In broad terms, it holds that the seat decides the application of Part I of the Act. Cite it for that point only.

Can the tribunal hold hearings outside the place of arbitration?

Yes. Section 20(3) lets the tribunal meet at any place it considers appropriate for specified purposes, unless the parties have agreed otherwise. This does not change the place of arbitration.

Who decides the place of meetings in conciliation?

Under Section 69(2), if the parties have not agreed, the conciliator decides after consulting the parties and having regard to the circumstances of the conciliation proceedings.