Be that as it may, a question that also arises for consideration of this Court is whether recording of evidence of any witness at the place or venue outside the agreed venue would amount to change of venue under any part of Section 20 of the Arbitration Act or not. It is not in dispute that on 14th June 2016, this Court passed order in Arbitration Petition (L) No. 7 of 2016 based on the consent minutes of order tendered by the parties. In paragraph 3 of the consent minutes of order, it was provided that the said agreements shall be governed by the laws of India. The seat and venue of the arbitration shall be Mumbai. The Courts at Mumbai shall have exclusive jurisdiction in relation to the arbitration. Based on Clause 3 of the consent minutes of the order dated 14th June 2016, it is strongly contended by the respondents that the recording of evidence in Singapore on Commission even if appointed by this Court would amount to change of venue of the arbitral proceedings which would be contrary to the venue agreed by both the parties in the consent minutes of order dated 14th June 2016.In my view, Mr. Kapadia, learned senior counsel for the petitioners is right in his submission that as and when such evidence would be tendered by the petitioners of their witness whose evidence is recorded on commission, if allowed by this Court, before the learned arbitrator in Mumbai, at that stage, the evidence would be tendered in Mumbai and may be considered by the learned arbitrator.
In my view, there would be thus no change of agreed venue even if evidence of witness is recorded on commission not in Mumbai but in Singapore. A commission if appointed, for recording evidence of witness of the petitioners would be an agent of the Court for the purpose of recording of evidence in Singapore which process would not change the agreed venue. If the argument of the learned senior counsel for the respondents that recording of evidence on commission in Singapore would amount to change the venue without consent of the parties is accepted, the arbitral tribunal will not be able to meet at any place though considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property. Acceptance of such argument would be in clear violation of Section 20 (3) of the Arbitration and Conciliation Act, 1996.
IN THE HIGH COURT OF BOMBAY
Arbitration Petition No. 332 of 2018
Decided On: 08.06.2018
Stemcor (S.E.A.) Pte Limited Vs. Mideast Integrated Steels Limited and Ors.
Hon'ble Judges/Coram:
R.D. Dhanuka, J.
