Law:

Section:

(a) Contract Act (IX of 1872)--- ----S. 28---Agreement in restraint of legal proceedings---Scope---Section 28 of Contract Act, 1872 declared any contract void which restricted "absolutely" the parties from enforcing their rights under or in respect of any contract by approaching ordinary Tribunals or which limited the time within which any of the parties to the agreement might enforce its rights. (b) Contract Act (IX of 1872)--- ----S. 28---Agreement between parties to refer their dispute to a particular court having jurisdiction--- Legality--- Any agreement between parties agreeing to refer their dispute arising between them to a court having jurisdiction could not be considered contrary to public policy as the same does not contravene the provisions of S. 28 of Contract Act, 1872---Any such agreement would be considered lawful and parties would be bound to follow the same. State Life Insurance Corporation of Pakistan v. Rana Muhammad Saleem 1987 SCMR 393 and Messrs Kadir Motors (Regd.) Rawalpindi v. Messrs National Motors Ltd., Karachi and 3 others 1992 SCMR 1174 rel. (c) Contract Act (IX of 1872)--- ----S. 28---Civil Procedure Code (V of 1908), O. VII, R. 10---Agreement between parties to refer their dispute to a particular court having jurisdiction---Legality---Plaintiffs had filed a suit against the defendant-company in civil court at place "L"---Defendant-company filed an application before said civil court under O.VII, R. 10, C.P.C. contending that as per an agreement between the parties, only civil court at place "K" was conferred jurisdiction to adjudicate upon any dispute between the parties , therefore, plaintiffs were estopped and debarred from invoking jurisdiction of civil court at place "L"---Civil court at place "L" declined said application on the ground that agreement between parties regarding conferring of jurisdiction on civil court at place "K" was against the mandate of S. 28 of the Contract Act, 1872---Validity---Any agreement between parties agreeing to refer their dispute arising between them to a court having jurisdiction could not be considered contrary to public policy as the same does not contravene the provisions of S.28 of…

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