Inherent court power and agreed-forum clauses: injunction upheld against a suit filed in breach of the parties' forum agreement.

The HC recognised that the Code of Civil Procedure is not exhaustive and that, where necessary, it may use inherent power to prevent abuse of process and secure real and substantial justice. On that basis, it held that an injunction could be granted to stop a party from pursuing a suit in another forum in breach of a binding agreed-forum clause. The defendant's suit at Ambala was found to violate that agreement, and the finding that the order forms containing the clause were signed was accepted as correct and not open to interference in revision. The injunction was upheld.

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Issues: Whether the Court had jurisdiction to grant an injunction restraining a party from proceeding with a suit in another court where the parties had agreed that disputes would be decided at a specified forum.

Analysis: The application for injunction was challenged on the ground that such relief did not fall within Order 39 read with Section 94 of the Code of Civil Procedure. The Court held that the Code is not exhaustive and that, where the circumstances require it, the Court can exercise inherent power to prevent abuse of process and to do real and substantial justice. The agreed forum clause was found to be binding, and the defendant's suit at Ambala was held to be in clear breach of that agreement. The factual finding that the defendant had signed the order forms containing the clause was accepted as correct and not open to interference in revision.

Conclusion: The Court had jurisdiction to grant the injunction, and the order restraining the defendant from prosecuting the Ambala suit was upheld.

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