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

Under an agreement between Rao Steels (Hyderabad) and Iyer Alloys (Chennai), the parties agreed that the place of arbitration is Mumbai. The sole arbitrator, unless the parties agreed otherwise, wants to hear two witnesses in Bengaluru, where they live. What is the legal position?

The arbitrator may hear witnesses in Bengaluru unless the parties have agreed otherwise, because the tribunal can meet at any appropriate place for hearing witnesses. This does not alter the agreed place of arbitration, Mumbai, and no Court permission is needed.

  1. AThe place of arbitration shifts to Bengaluru for the whole proceeding
  2. BThe arbitrator may hear the witnesses in Bengaluru, and the agreed place Mumbai remains the place of arbitrationCorrect
  3. CThe arbitrator cannot meet anywhere other than Mumbai under any circumstances
  4. DThe arbitrator may do so only with permission of the Court

Explanation

Section 20(3) permits the tribunal, notwithstanding the agreed place, and unless the parties agree otherwise, to meet at any place it considers appropriate for hearing witnesses, experts or parties. This is a convenience of meeting, not a change of the place fixed under section 20(1). Court permission is not required.

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