Exclusive jurisdiction clause confined arbitration-related proceedings to Kolkata courts, ousting Rajasthan High Court jurisdiction.

An express clause making the agreement subject to the jurisdiction of the courts at Kolkata was treated as an exclusive jurisdiction provision, because the contractual language and context showed an intention to confine disputes to that forum. On that basis, the Rajasthan HC lacked territorial jurisdiction to entertain the application for appointment of an arbitrator. The objection concerning the validity of the arbitration agreement was not adjudicated and was left open for the competent court.

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Issues: Whether the High Court had territorial jurisdiction to entertain the application for appointment of an arbitrator in view of the contractual clause conferring jurisdiction on the courts at Kolkata.

Analysis: The agreement expressly stated that it would be subject to the jurisdiction of the courts at Kolkata. Such a jurisdiction clause was treated as an exclusion of other courts where the contractual language and surrounding context showed an intention to confine disputes to one forum. On that basis, the court held that the clause operated as an exclusive jurisdiction clause and that the Rajasthan High Court could not entertain the application. The objection regarding the validity of the arbitration agreement was not decided and was left open for the competent court.

Conclusion: The High Court lacked territorial jurisdiction to decide the application for appointment of an arbitrator.

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