Abstract:
The Code of Civil Procedure’s Section 15 provides for the jurisdiction of a civil court of the lowest grade to entertain a suit. A unique tool in the hands of the parties entering a contractual obligation is the choice of jurisdiction of the forum having a natural jurisdiction. The objective of this research is to study the ratio of relevant case laws that throw light on the question of jurisdiction especially when exclusivity has been agreed upon. The analysis highlights the power vested in the contract and its implementation for the innate power of natural jurisdiction. The heavy dependence of facts and circumstances of the case in the absence of exclusive wordings is also a prominent consensus in deciding the case. The research nonetheless, with various examples like the foreign jurisdiction clause, ouster clause etc. seeks to understand the provision of the code with the exclusivity contract agreement.
Keywords: Choice of Court, Competency, Contract, Exclusivity, Jurisdiction.
Introduction:
The growth of trade and commerce, along with enhanced connectivity, has triggered a worldwide reshaping of jurisdictional structures in civil law. With organizations participating in interstate transactions, the differentiation of conflict resolution mechanisms has become an essential element of contractual structures. The choice of jurisdiction is not a mere procedural nicety, but an articulation of the legal principles of autonomy and effectiveness in dispute resolution. Parties seek to have their interests secured within a hospitable legal environment, thus contributing to the predictability and stability of commercial relations.
The purpose is to execute the standards of substantive law guaranteeing fair justice to uphold rights.[1]Section 15[2]of the Code specifically plays an important role to determine the institution of suits.
The law enshrined under this Section states about the institution of every suit in the lowest court of grade with competence to try the suit.[3]While the traditional geographical limitations continue to erode with deepening globalization, the experience of parties entering into contractual arrangements relating to choice of courts has seen a dramatic rise. The arrangements may range from designating a specific court in a state to selecting an international tribunal as a neutral forum for the resolution of disputes. Such an experience creates essential questions relating to jurisdiction, particularly where exclusivity of jurisdiction is either explicitly stated or even not stated but implied, which raises judicial interpretive challenges.
[1]Vinit Singh, Aim and Scope of Civil Procedure Code, 1908, Tax Dose (May. 26, 2020), https://www.taxdose.com/aim-and-scope-of-civil-procedure-code-1908-c-p-c/.
[2] Code of Civil Procedure, 1908, § 15, No. 5, Acts of Parliament, 1908 (India).
[3] 6 Takwani, Civil Procedure (Eastern Book Company 2009).