The seat of an arbitration

Determining the seat of an arbitration

The provisions of the Arbitration Act 1996 are applicable to an arbitration only if the ‘seat’ of the arbitration is in England, Wales or Northern Ireland. The ‘seat’ is the ‘juridical seat’ (section 3), which is not necessarily the physical situation of the hearings. Section 3 goes on to provide that the seat may be designated by the parties, or by the arbitrators if so authorised by the parties. In the absence of any express agreement or determination, the matter has to be decided ‘having regard to the parties’ agreement and all the relevant circumstances’. The approach to be adopted in applying this general test was discussed by Aikens J in Dubai Islamic Bank PJSC v Paymentech Merchant Services Inc , [2001] 1 Lloyd’s Rep 65.