Both the appellant Board, having its base and operation at Jaipur and the respondent Company, having its registered office and manufacturing unit at Calcutta entered into an agreement having following clause:
"30.....The contract shall for all purposes be construed according to the laws of India and subject to jurisdiction of only at Jaipur in Rajasthan Courts only..........."
Somehow the disputes arose between the parties. The respondent company approcached the Hon'ble High Court at Calcutta. Somehow matter came before Hon'ble Supreme Court. Hon'ble Court referring its earlier judgments confirm the view expressed in Hanil Era Textiles Ltd. v. Puromatic Filters (P) Ltd. [(2004) 4 SCC 671], it was held by this Court that where two or more courts have jurisdiction under the Code, it is permissible to have an agreement between the parties restricting the place of suing to any one of them and if such restriction is placed in the agreement, the same cannot be said to be contrary to public policy and does not contravene Section 28 of the Contract Act. It was however, made clear that such restriction cannot be made and the parties cannot by agreement confer jurisdiction on a court which otherwise it does not possess under the Code.
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