The Chhattisgarh High Court has held that, under 'exclusive jurisdiction' clause in the arbitration agreement, the dispute is to be adjudicated at the place mentioned in the agreement and not at any other place.
The dispute before the High Court was that, one of the party to the agreement proceeded to take steps to resolve the dispute under the provisions of the Micro, Small and Medium Enterprise Development Act, and the other party had raised an issue of jurisdiction for resolving any dispute is to be settled at Jaipur (Rajasthan) and not at any other place, since there was an exclusive jurisdiction clause in the arbitration agreement.
Justice Prashant Kumar Mishra referred to recent judgment of the Supreme Court, in Indus Mobile Distribution Private Limited vs Datawind Innovations Private Limited, wherein it was held that when there is an exclusive jurisdiction clause in an arbitration agreement stating that the courts at a particular place alone would have jurisdiction in respect of disputes arising under the agreement, it would oust all other courts’ jurisdiction in the matter, even in a case where no part of cause of action arises at that place.
Quashing the order of the Micro Small and Medium Enterprises Facilitation Council (MSEFC), the court granted liberty to the party to raise the dispute before the jurisdictional forum at Jaipur (Rajasthan).
Read the Judgment here.