Exclusive Jurisdiction clause & Arbitration

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Shubham Budhiraja[1]

Shubhambudhiraja02@gmail.com

A and B enters into the dealership agreement as per which either party can terminate the agreement by giving 60 days’ notice. A, the manufacturer, terminated the agreement and B filed section 9 petition before Hon’ble High Court seeking restrain on actions pursuant to termination. A took its defense that in terms of exclusive jurisdiction clause, only courts in Chennai can decide the matter. The Hon’ble Delhi High Court dismissed the petition for want of maintainability relying on Indus Mobile Distribution Private Limited Vs. Datawind Innovations Private Limited (2017) 7 SCC 678 wherein it was held that “subject-matter of the arbitration” cannot be confused with “subject-matter of the suit”. In the present case also parties have agreed to the venue of arbitration as Chennai and also that the competent courts in Chennai would have exclusive jurisdiction. It is held that the courts at Delhi would not have the jurisdiction to entertain any proceedings arising out of the subject dealership agreement and the competent courts at Chennai alone would have exclusive jurisdiction[2].


[1] Advocate, Delhi High Court

[2] O.M.P.(I) (COMM.), Delhi High Court, dated 27.04.2022

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