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CS Professional · Arbitration, Mediation and Conciliation · Arbitration under Investors' Grievances Redressal Mechanism of Stock Exchanges

A client and a member broker had an arbitration clause in their client agreement. The agreement is silent on the place of arbitration. The tribunal is constituted to decide the investor's claim. Which statement is correct under the Arbitration and Conciliation Act, 1996?

The arbitral tribunal determines the place of arbitration. Parties are free to agree it, but where they have not, the Act directs the tribunal to decide having regard to the circumstances of the case, including the convenience of the parties, not the broker's office or a court.

  1. AThe stock exchange must fix the place, as parties cannot decide it
  2. BThe place is determined by the arbitral tribunal, having regard to the circumstances including the convenience of the partiesCorrect
  3. CThe place must be where the broker's registered office is located
  4. DThe place is decided by the court that first receives an application

Explanation

Section 20(1) lets the parties agree the place. Failing agreement, section 20(2) says the tribunal determines it having regard to the circumstances, including convenience of parties. The broker's office is not a statutory default.

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