M/S Swastik Gases P.Ltd vs Indian Oil Corp.Ltd

The Supreme Court addressed the issue of territorial jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, in the context of a consignment agency agreement. The Court held that the jurisdiction stipulated in clause 18 of the agreement, which designated Kolkata as the exclusive jurisdiction, was binding. Consequently, the Rajasthan High Court lacked jurisdiction to entertain the application for the appointment of an arbitrator, leading to the dismissal of the appellant's application and the direction to file in the Calcutta High Court.