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CS Professional · Arbitration, Mediation and Conciliation · Emerging Aspects: Fast Track and Virtual Arbitration

Mehta Textiles Ltd (Surat) and Kaveri Dyes Pvt Ltd (Chennai) have an arbitration agreement that names Pune as the place of arbitration. After the tribunal is constituted, all hearings are conducted through video conferencing, with the arbitrators sitting in different cities. Which statement correctly reflects the Act?

The place of arbitration remains Pune. Section 20(1) lets the parties agree on the place, and that agreement governs. Conducting hearings by video conference with arbitrators in different cities does not alter the agreed place or require the tribunal to determine a new one.

  1. AThe place of arbitration remains Pune because the parties agreed on it, and virtual hearings do not change itCorrect
  2. BThe place shifts to the city where the presiding arbitrator is sitting during the hearing
  3. CThe place of arbitration becomes Surat, being the claimant's location
  4. DThe tribunal must fix a fresh place because no physical meeting is held

Explanation

Under section 20(1) the parties are free to agree on the place of arbitration. Having agreed on Pune, that choice stands. Holding hearings by video does not displace the agreed place, so the options suggesting a shift or fresh determination are wrong.

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