Section 28 of Contract Act Does Not Bar to Exclusive Jurisdiction Clauses: Supreme Court

The Supreme Court has ruled that exclusive jurisdiction clauses in employment contracts are legally valid, provided the chosen court has authority over the matter.

The case involved HDFC Bank employees whose contracts specified Mumbai courts for resolving disputes. After their termination, they filed suits in Delhi and Patna. 

While the Patna High Court upheld the jurisdiction clause, the Delhi High Court did not, and allowed the case to proceed. 

The Supreme Court overturned the Delhi HC’s decision, holding that Section 28 of the Indian Contract Act does not bar such clauses, and directed that the cases be heard in Mumbai, as per the contract terms.