AIR 1989 SUPREME COURT 1239 ::(1989) 1 LS 30 ::1989 30 GujLR 735 ::1989 (2) SCC 163 ::(1989) 2 APLJ 15 ::(1989) 2 Guj LR 735 ::(1989) 1 Mad LW 449 ::(1990) 1 Mad LJ 10 ::(1989) 44 Taxman 442 ::(1989) 2 JT 38 (SC) ::1989 2 JT 38

Supreme Court Of India

(From : Madras)*

Hon'ble Judge(s): G. L. Oza, K. N. Saikia , JJ

(A) Contract Act (9 of 1872) , S.2(a)— Agreement - Contents of - Confirmation order acknowledging receipt of order, registering it 'subject to terms and conditions overleaf' - General terms overleaf containing clause making dispute subject to jurisdiction of particular Court - clause forms part of agreement. (Para 7) (B) Contract Act (9 of 1872) , S.23, S.28— Contract to vest jurisdiction in one of Courts within whose whose jurisdiction cause of action arises - Not against public policy. Civil P.C. (5 of 1908) , S.20(c)— Jurisdiction of Court - More than one Court having jurisdiction - Contract to vest jurisdiction in one of them - Not against public policy. Where there may be two or more competent Courts which can entertain a suit consequent upon a part of the cause of action having arisen therewithin, if the parties to the contract agreed to vest jurisdiction in one such Court to try the dispute which might arise as between themselves the agreement would be valid. If such a contract is clear, unambiguous and explicit and not vague it is not hit by Sec. 23 and 28 of the Contract Act. This cannot be understood as parties contracting against the Statute. Mercantile Law and practice permit such agreements.(Para 18) ....