Jurisdiction of courts
P.C. Joshi
(Querist) 27 June 2012
This query is : Resolved
Dear Friends,
I have a simple query relating to jurisdiction of courts in civil & criminal matters. I have come across with many agreements between the parties situating in diiffrent states. But there is a cluse in the agreement that in case of any dispute, only the courts situated at a particular place say Mumbai( where the parties are situated in Delhi and Mumbai)I want to ask is this kind of a cluase is binding on the parties specially where the Civil & Criminal procedure in India specifically define the jurisdiction of the courts.
Secondly, in some agreement the dispute resolution mechanism is provided through Arbitration Law and there is a clause in agreement that the decision of Arbitrator will be final and binding on the parties. Does it mean that the parties are debarred from going to courts having such clause in the agreement. can we have dispute resolution mechnism both by arbitration and by normal legal mechanism in the agreement.
i shall appreciate if some one can pls clarify the above points.
Thanks
P.C. Joshi
Guest
(Expert) 27 June 2012
Irrespective of such clause in the agreement, jurisdiction of the court is determined with reference to the provisions of the applicable Act.It may depend upon the place where the Registered Office of the company is located or where the cause of action took place or where the disputed property of the company is located etc.
If ther is an arbitration clause in the contract or any other appropriate forum is laid down in the Act for seeking relief, you are to first avail that opportunity. Otherwise court will dismiss your petition.
Award of the arbitrators are final and binding upon both the parties.However, if any of the parties is de-satisfied with the award, he can file an appeal before the court to set-aside or modify the award.
Sankaranarayanan
(Expert) 27 June 2012
I too agree with. M r arun kumar. If the jurisdiction mentined in the contract then it should be go unser with in limit. As for as ADR. The. Mentioned forum or clause should be followed. Otherwise. Othewwise the civil court will reject it.
Suhail A.Siddiqui
(Expert) 27 June 2012
As CPC/Cr.PC jurisdiction decide on Cause of action place normally, By agreement (mutually)jurisdiction can not attain.
J K Agrawal
(Expert) 29 June 2012
Sections 15 to 20 of the CPC are not 'subject to the agreement contrary'. These provide absolute law and no condition in agreement supersede these. Means the jurisdiction clause of an agreement is almost of no use.
The clause of arbitration is powerful if you take the objection of the same on 'first hearing'.
Dr V. Nageswara Rao
(Expert) 29 June 2012
1. A contract can neither confer jurisdiction on a Court that does not have jurisdiction under CPC or CpPC nor take away the jurisdiction.
2. A Company located in Delhi or Ludhiana selling things by mail, for instance, can provide in the contract that the suits can be filed against it only at the place where it is loacted even if the purchaser is in Kanyakumari. S. 20 CPC confers jurisction on the place where the defendant resides.
3. Under CrPC if the offence has taken place at more than one place, the Court in sny of the places can exercise jurisdiction.
4 So arbitrarily the parties cannot pick and choose place of suing.
5. Arbitration under the Act of 1996 has completely privatised non-statutory arbitration. So parties to arbitration agreement can completely oust the jurisdiction of the civil Courts (Ss. 5 & 6). But a party can seek to set aside the award if it is permitted under S. 34 and not othrewise.
6. In arbitration the parties can choose a venue of their convenience for arbitration and CPC has no application.
venkatesh Rao
(Expert) 30 June 2012
No agreement nor any amount of consent between parties do not confer any kind of jurisdiction on courts.
P.C. Joshi
(Querist) 01 July 2012
My sincere thanks to learned members, for sharing their knowledge.
Thanks
P.c. Joshi
