M/S Milkfood Ltd vs M/S Gmc Ice Cream (P) Ltd

The Supreme Court held that the arbitration agreement's clause specifying Delhi as the venue is binding, and thus the Gaya court lacked jurisdiction to entertain the suit filed by the respondent. The Court emphasized that under Section 34 of the Arbitration Act, 1940, the appellant was entitled to seek a stay of the proceedings in the Gaya court due to the arbitration clause. The Court upheld the decision of the Patna High Court to refer the matter to arbitration, affirming that the award made by the arbitral tribunal was valid and enforceable under Section 14(2) of the Arbitration Act.