What is a Seat of Arbitration

Seat of an arbitration is the country in which the arbitration proceedings take place. In international arbitrations, it is usually a neutral country i.e., a country other than the country of habitual residence of the parties. The law of the seat of arbitration governs the proceedings of the arbitration. It is also known as lex arbitri. The choice of seat also determines which courts would exercise supervisory jurisdiction.

However, it is not necessary that each and every proceeding should take place at the seat of arbitration. Hence, a “venue” i.e., a geographical location where arbitration takes place can be different from the “seat” of the arbitration. Nevertheless, the law of the seat would continue to apply as though the proceedings are being conducted at the seat itself. For instance, the courts of the seat of the arbitration have to the power to set aside an award if challenged by one of the parties.

As per Section 20 of the Arbitration and Conciliation Act, the parties are free to agree on the place of arbitration, failing which it shall be determined by the tribunal having regard to the circumstances of the case and convenience of the parties.