1995 (4) TMI 250

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....e appellant had initiated action in the Court of Subordinate Judge, Dhanbad for recovery of certain amounts said to be due from the first respondent. The appellant filed the case on a contract executed by the first respondent. On filing the suit for recovery of the amounts, the respondents raised the objection as regards the jurisdiction of the Court and placed reliance on Clause (21) of the contr....

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....of the subordinate Judge, Dhanbad. Therefore, by operation of the Explanation to s.20, it must be deemed that the cause of action had arisen within the local limits of the jurisdiction of the Court of Subordinate Judge, Dhanbad. Normally, the plea of jurisdiction of the Court is to be considered in accordance with ss.16 to 20 of CPC. Section 20 provides that subject to some limitations, every s....

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....etween the parties. In this case, Clause (21) reads thus: "This work order is issued subject to the jurisdiction of the High Court situated in Bangalore in the State of Karnataka. Any legal proceeding will, therefore, fall within the jurisdiction of the above Court only." A reading of this clause would clearly indicate that the work order issued by the appellant will be subject to the jurisd....

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.... an agreement to oust absolutely the jurisdiction of the Court will be unlawful and void being against the public policy under s.23 of the Contract Act. We do not find any such in validity of Clause (21) of the Contract pleaded in this case. On the other hand, this Court laid that where there may be two or more competent courts which can entertain a suit consequent upon a part of the cause of acti....