Delhi Judicial Services 2006

Parties by their consent/Agreement

Verified Answer
A. Can oust the jurisdiction of the court where there is none in law
B. Can oust the jurisdiction of one of courts when there are two courts simultaneously having jurisdiction in law
C. Can confer jurisdiction on act where there is none in law
D. All the above

Explanation:

Parties cannot by their agreement confer jurisdiction on a court which has no jurisdiction in law over the subject matter of the suit. Similarly, they cannot by agreement oust the jurisdiction of a court which inherently has jurisdiction. However, if two or more courts have jurisdiction to try a suit, it is open to the parties to agree that a suit should be brought in one of those courts alone, and such an agreement is not hit by Section 28 of the Contract Act. This is known as an "exclusive jurisdiction clause" or "ouster clause" in the context of multiple competent forums.