Choice of Seat and its Significance

Arbitration is the preferred mode of dispute resolution for international commercial disputes as it facilitates speedy disposal of the dispute with the added benefit of party autonomy. The principle of party autonomy is the quintessence of arbitration and permits parties to choose, by agreement, the legal framework governing the arbitration proceeding and the courts that exercise supervisory jurisdiction over the proceedings. The "seat of arbitration" is a vital element of an arbitration agreement and signifies the legal domicile of the arbitration. By designating the seat, the parties implicitly decide the procedural law of arbitration and the supervisory jurisdiction of the national courts. The concept of the seat of arbitration and its significance are examined in this article.