HAKAM SINGH Vs. GAMMON INDIA LIMITED

JUDGEMENT

(1.) ON 5/10/1960 the appellant agreed to do certain construction work for the respondent on the terms and conditions of a "written tender". Clauses 12 & 13 of the tender were:

(2.) THE High Court of Allahabad in exercise of its revisional jurisdiction set aside the order passed by the Subordinate Judge and declared that the Courts in Bombay had jurisdiction under the general law to entertain the petition, and by virtue of the covenant in the agreement the second branch of Clause 13 was applicable and binding between the parties and since the parties had agreed that the Courts in Bombay alone had jurisdiction to adjudicate upon the contract, the petition to file the arbitration agreement could not be entertained by the Courts at Varanasi. Against the order of the High Court directing that the Petition be returned for presentation to the proper Court, the appellant has appealed to this Court with special leave

(3.) COUNSEL for the appellant contended that merely because the respondent carried on business in Bombay the Courts at Bombay were not invested with jurisdiction to entertain any suit or a petition for filing an arbitration agreement. Section 20 of the Code of Civil Procedure provides :