Shri Ganpati Jurists Legal Learning
📜 Supreme Court on Exclusive Jurisdiction Clauses in Employment Contracts
The Supreme Court has clarified that exclusive jurisdiction clauses in employment contracts are not barred by Section 28 of the Indian Contract Act, 1872.
✅ Key Takeaway:
Such clauses are valid as long as:
1. They do not restrain legal proceedings entirely, complying with Section 28.
2. The chosen court must have lawful jurisdiction under existing legal provisions.
3. The clause must clearly or implicitly show the parties’ intention to confer jurisdiction to a specific court.
📖 Legal Insight:
The Court rejected the argument that employment contracts should be treated differently because of unequal bargaining power. A contract remains legally binding regardless of the status or influence of the parties. The law applies equally to both the "mighty lion" and the "timid rabbit."
Contracts must be honored without discrimination.
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