RAKESH KUMAR VERMA
Vs.
HDFC BANK LTD.
( Before : Dipankar Datta and Manmohan, JJ. )
Civil Appeal No. 2282 of 2025 with Civil Appeal No. 2286 of 2025
Decided on : 08-04-2025
An exclusive jurisdiction clause in a private employment contract, designating a competent court, is valid and enforceable, ousting jurisdiction of other courts, despite potential unequal bargaining power.
A. Contract Act, 1872 — S. 28 — Civil Procedure Code, 1908 — S. 20 — Contractual Clauses — Exclusive Jurisdiction — Validity — Parties to a contract, including an employment contract, are free to agree on conferring exclusive jurisdiction upon a specific court, thereby ousting the jurisdiction of other courts which might otherwise be competent under S. 20, CPC — Such a clause is valid and enforceable provided that: (i) it does not absolutely restrict a party from enforcing rights through usual legal proceedings (thus not violating S.28, Contract Act), (ii) the chosen court possesses inherent jurisdiction under the CPC or relevant statute and (iii) the agreement clearly expresses the intention, explicitly or implicitly (applying expressio unius est exclusio alterius), to exclude the jurisdiction of other competent courts.
