In a significant judgment, the Supreme Court of India has upheld an arbitration clause despite its flaws, ensuring that the supervisory jurisdiction over the arbitration lies with Indian courts. The case, Enercon (India) Ltd and Ors v Enercon Gmbh and Anr, involved a dispute between Enercon (India) Ltd and Enercon Gmbh, a German company, regarding the non-delivery of supplies governed by an Intellectual Property Licence Agreement (IPLA). The arbitration clause in question specified London as the venue of the arbitration, but the Supreme Court held that the seat of arbitration was in India, as the governing law of the IPLA was Indian law and the provisions of the Indian Arbitration Act were to apply.

This judgment has significant implications for the arbitration process in India, as it clarifies the importance of the seat of arbitration and the role of Indian courts in supervising arbitration proceedings.