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

Two parties signed a contract with an arbitration clause but did not mention any place of arbitration. After a dispute, the tribunal fixes Pune as the place, considering the convenience of the parties. It then wishes to hear a witness at Mumbai, where the witness lives, though the parties never agreed on hearing venues. Which statement is correct?

The tribunal may fix Pune under section 20(2) as the parties did not agree, and under section 20(3), unless the parties agree otherwise, it may meet at Mumbai or any appropriate place to hear witnesses, without court permission.

  1. AThe tribunal cannot hear anyone outside Pune because the place fixed binds all hearings
  2. BThe tribunal may fix the place having regard to the circumstances, and unless the parties agree otherwise may meet elsewhere to hear witnessesCorrect
  3. CThe tribunal needs prior court permission to meet at Mumbai
  4. DThe place had to be fixed by the court since the parties did not agree

Explanation

Section 20(2) lets the tribunal determine the place when parties have not agreed, considering their convenience. Section 20(3) allows it, unless parties otherwise agree, to meet at any place it considers appropriate for hearing witnesses. No court permission is needed.

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