Contract
uma shankar
(Querist) 21 June 2013
This query is : Resolved
A contract has been entered into by two Companies, one of which has its registered office in Hyderabad and the other in Chennai. The subject matter of the contract is to be executed in Hyderabad. In the contract document, both parties have stipulated that in case of any dispute, the Courts in Chennai shall have jurisdiction. Is is permissible ? Views of learned members would be appreciated.
Thanks
Email:shankar_mayur@hotmail.com
ajay sethi
(Expert) 21 June 2013
yes it is permissible . parties can decide about jurisdiction in case of disputes
uma shankar
(Querist) 21 June 2013
In this context I refer to S.20 of the CPC which states that action can be brought in the place where the defendant resides or where the cause of action arises. Under the circumstances, can the parties to a contract fix the jurisdiction of a particular Court in the contract, even if the place fixed in the contract may be different from where the cause of action arises or where the defendant arises ?
Thanks.
Raj Kumar Makkad
(Expert) 26 June 2013
Two persons merely making making mutual contract, cannot take away the original jurisdiction of Courts as defined under section 20 of CPC. The law is not depenedant over the wish of the parties concerned hence the jurisdiction of civil courts of Hydrabad cannot be taken away in the given case.
prabhakar singh
(Expert) 26 June 2013
QUESTION POSED??:can the parties to a contract fix the jurisdiction of a particular Court in the contract, even if the place fixed in the contract may be different from where the cause of action arises or where the defendant arises ?
MY PLAIN ANSWER IS A SINGLE WORD :"NO!
