In this civil appeal, the Supreme Court addressed whether a petition under Section 34 of the Arbitration and Conciliation Act, 1996, filed before the District Judge at Sundargarh was maintainable regarding jurisdiction and limitation. The High Court had earlier dismissed the Section 34 petitions, ruling that Cuttack was the juridical seat of arbitration by operation of Section 42 because the arbitrator was appointed by the High Court at Cuttack, and that the petitions were time-barred. The Supreme Court allowed the appeal, noting that both sides conceded the finding on limitation was erroneous and holding that Cuttack was merely a physical venue chosen for administrative convenience rather than the designated legal seat. The Court emphasized that courts within the territorial jurisdiction where the work was executed (Sundargarh) possess proper jurisdiction, setting aside the High Court’s judgment and restoring the Section 34 petitions to the District Court at Sundargarh.
- Background of the Dispute:
- Appellants issued a tender on November 7, 2012, for hiring HEMM equipment and performing transport and excavation work at the Kulda Open Cast Project in Sundargarh.
- Following disputes regarding execution, the Orissa High Court appointed a Sole Arbitrator under Section 11(6) of the Act by a common order dated March 25, 2019.
- The Sole Arbitrator passed a common award in favor of the respondent on October 25, 2021.
- Filing of Section 34 Petitions:
- Appellants filed three separate petitions under Section 34 of the Act before the District Court, Sundargarh, on December 8, 2021, seeking to set aside the award.
- The respondent objected to maintainability on grounds of limitation and territorial jurisdiction, which the District Court initially dismissed on March 6, 2024.
- The High Court subsequently allowed the respondent’s writ petition, holding the Section 34 petitions non-maintainable for lack of jurisdiction and limitation.
- Supreme Court’s Findings on Limitation:
- The common arbitral award was dated October 25, 2021, and the Section 34 applications were filed on December 8, 2021, which was well within the three-month statutory limitation period.
- Senior counsel for the respondent fairly conceded that the High Court’s finding on limitation was erroneous.
- Supreme Court’s Findings on Jurisdiction & “Seat” vs. “Venue”:
- Contractual terms (Clause 12 and Clause 40) explicitly stated that disputes arising out of the tender would be subject to the jurisdiction of the District Court where the work was executed—namely, Sundargarh.
- The High Court erred in treating Cuttack as the juridical seat merely because arbitration hearings took place there for administrative convenience or because the High Court (situated in Cuttack) made the appointment under Section 11(6).
- There was no express agreement or designation of Cuttack as the “seat” of arbitration; physical hearings at a location do not automatically convert a “venue” into a “seat”.
- Final Directions:
- The Supreme Court set aside the High Court’s judgment dated June 20, 2025.
- The Section 34 petitions filed by the appellants are restored to the file of the District Judge, Sundargarh, for expedited disposal in accordance with law.
2026 INSC 1038
Mahanadi Coalfields Ltd & Ors. v. M/s GSCO (Gurmeet Singh and Company) Infrastructure Pvt. Ltd. (D.O.J. 23.09.2026)



