Section 20 of ACA : Section 20: Place Of Arbitration

Explanation using Example

Imagine a scenario where two companies, one based in New Delhi and another in Mumbai, are in a contract dispute. They have chosen to resolve their dispute through arbitration. According to Section 20(1) of The Arbitration and Conciliation Act, 1996, these companies can mutually decide on a place for the arbitration, say Bengaluru, for neutrality.

If the companies cannot agree on a location, as per Section 20(2), the appointed arbitral tribunal might decide to hold the arbitration in Hyderabad, considering it as a convenient location for both parties and their witnesses.

Furthermore, under Section 20(3), even if the arbitration is set to take place in Hyderabad, the tribunal may choose to meet in Pune to inspect some crucial machinery involved in the dispute, as long as the parties haven't agreed otherwise.