Impact of International Jurisdictions in Mutual Consent
Background:
An MNC based in Singapore handling a construction project in Singapore has been outsourcing materials from an Indian Company based in Pune, Maharashtra. As per the contracts, the jurisdiction was confined to the Courts in Singapore. The Indian Company has given a Bank Guarantee which was invoked by the MNC through its bankers.
Challenges:
The matter had to be confined to the Courts in Singapore and not to continue in the Civil Court in Pune.
Strategy:
An application was filed seeking reference of the dispute to arbitration in Singapore. Additionally, another application was filed to set aside the add-interim stay order. It was pointed out that the ad-interim stay order of the Supreme Court was without jurisdiction.
Emphasis was laid on the fact that the exclusive jurisdiction was given to the Courts in Singapore by mutual consent of both parties. Reference was also made to a number of relevant cases in India.
Impact:
The Court ordered the suit to be referred to arbitration in Singapore. The plaint was returned to the Indian vendor.