What was the main issue in Indus Mobile v. Datawind?

Whether an exclusive jurisdiction clause in an arbitration agreement can oust all other courts.

What did the Supreme Court decide about exclusive jurisdiction?

If parties choose a seat and exclusive court, that choice excludes other courts even if no part of the cause of action happened there.

Are 'juridical seat' and 'legal place' the same?

Yes. The Court said they are the same for arbitration.

Which court had jurisdiction in this case?

Only the Mumbai courts had jurisdiction because the agreement fixed Mumbai as the exclusive seat and court.

Indus Mobile Distribution v. Datawind Innovation Pvt. Ltd.

Q: What happened to the Delhi High Court’s view?

It was set aside. The Supreme Court restored exclusive jurisdiction to Mumbai courts.

Easy English explainer on exclusive jurisdiction and seat of arbitration under a contract with a chosen court and place.

(2017) 7 SCC 678 Supreme Court of India India Arbitration Law 6 min read

Author: Gulzar Hashmi | Published: 2 November 2025 | Primary: exclusive jurisdiction, seat of arbitration | Secondary: juridical seat, legal place

Quick Summary

The Supreme Court held that when parties choose a seat of arbitration and an exclusive court in their contract, that choice rules. The chosen court alone has jurisdiction, even if no part of the cause of action arose there. “Juridical seat” and “legal place” mean the same thing.

Exclusive court Seat controls Party autonomy

Issues

Can an exclusive jurisdiction clause in an arbitration agreement nullify all other courts’ jurisdiction?

Rules

Exclusive jurisdiction clause: If parties name a specific court linked to the arbitration agreement, other courts are excluded.
Seat equals supervisory court: Choosing the seat fixes the court that supervises the arbitration, even if the cause of action arose elsewhere.

Facts (Timeline)

Business setup: Datawind made and sold mobiles/tablets; office at Amritsar. It partnered with Indus Mobile as retail chain partner.

Dispute: Payment dispute arose. Datawind invoked arbitration and issued a notice to Indus Mobile to clear dues with interest in 7 days.

Contract clause: Arbitration “shall be conducted in Mumbai and subject exclusively to Mumbai courts.”

Delhi High Court: Held Mumbai courts lacked jurisdiction since no cause of action arose in Mumbai; said Delhi/Chennai/Amritsar courts had jurisdiction.

Appeal: Indus Mobile appealed to the Supreme Court.

Case timeline showing contract choice of Mumbai seat and court

Arguments

Appellant (Indus Mobile)

Parties fixed Mumbai as seat and exclusive court.
By choosing the seat, parties chose the supervisory court.
Delhi High Court erred by ignoring party autonomy.

Respondent (Datawind)

No cause of action in Mumbai; hence Mumbai courts lack jurisdiction.
Courts where performance/transactions occurred should hear the matter.
Exclusive clause should not oust natural forums.

Judgment

The Supreme Court restored exclusive jurisdiction of Mumbai courts. It held that the parties’ choice of Mumbai as the juridical seat/legal place and exclusive court excludes all other courts. The Delhi High Court’s view was set aside.

Gavel over a city map pin representing Mumbai’s exclusive jurisdiction

Ratio Decidendi

Choosing a seat of arbitration fixes the supervisory court.
An exclusive jurisdiction clause in the arbitration agreement ousts other courts.
“Juridical seat” ≡ “legal place”.

Why It Matters

This ruling gives businesses certainty. Pick a seat and court once; avoid multi-court fights later. It strengthens party autonomy and reduces forum shopping.

Key Takeaways

Seat decides: Supervisory court = court of the seat.
Exclusive wins: Named court excludes all others.
Cause of action irrelevant: Not needed in the chosen seat’s territory.

Mnemonic + 3-Step Hook

Mnemonic: S-E-A-T — Seat Equals Authority of Tribunal’s court.

Spot the clause: Is seat + exclusive court named?
Exclude others: Only the named court supervises.
Apply anywhere: Cause of action location does not matter.

IRAC Outline

Issue

Does an exclusive jurisdiction clause tied to the seat oust all other courts?

Rule

Seat = supervisory court; exclusive jurisdiction clause excludes other courts even without cause of action there.

Application

Contract fixed Mumbai as seat and exclusive court; thus Mumbai alone had jurisdiction over arbitration matters.

Conclusion

Mumbai courts have exclusive jurisdiction; Delhi High Court order set aside.

Glossary

Seat of arbitration: The legal home of arbitration; fixes the supervisory court and curial law.
Exclusive jurisdiction: A clause naming one court only, excluding all others.
Juridical seat: Another term for legal place of arbitration; same meaning.