Law: Contract, Act, 1872

Section: 28

Contract Act (IX of 1872)--- ----S. 28---Agreements in restraint of legal proceedings void---Principles---Nature and concept of voidability of agreements in restraint of legal proceedings, and exceptions thereto---Scope---When parties mutually agree that although an action arising out of a contract, could be brought before courts in multiple jurisdictions but a particular court which had otherwise jurisdiction to try such cause, was mentioned in such contract for purpose of adjudicating disputes, then such clause of agreement was not adversely affected by S.28 of Contact Act, 1872 as same could not be construed a restraint to legal proceedings---Such established legal principle may not be applicable in every case where there existed distinctive features which made said case(s) fall in exception to said legal principle. Sabaldas Janjimal and others v. Sobhokhan and others AIR (35) 1948 Sindh 91; Chaudhry Mehtab Ahmad and another v. Mir Shakeel-ur-Rehman and 4 others 2004 MLD 662; Messers Kadir Motors (Regd.) Rawalpindi v. Messers National Motors Ltd Karachi 1992 SCMR 1174; State Life Insurance Corporation of Pakistan v. Rana Mohammed Saleem 1987 SCMR 393 and Saleem Mehtab v. Messers Refhan Best Food Limited Company 2010 MLD 1015 ref. JUDGMENT MUHAMMAD FAISAL KAMAL ALAM, JUSTICE:---.--- Through the present Appeal, Appellant has challenged the order dated 15.10.2010 (“Impugned Order”) passed on C.M.A. No.4941 of 2008, under Order VII, Rule 10 of C.P.C., preferred by present Respondent, which was allowed and the claim of present Appellant was split into two; a part of which to be tried by this Court on its original side and the other part by the Court of competent jurisdiction at Sheikhupura City. Consequently, plaint was partly returned to be presented in the Court at Sheikhupura. 2. The relevant facts for decision of this Appeal is that Appellant and Respondent entered into two agreements dated 01.05.2003 (“First Agreement”) and 02.05.2003 (“Second Agreement”), inter alia, for providing trained workers/manpower to Respondent for loading, unloading and sorting and packing of products at its Glass Factory in Hub Baluchistan. 3. By the correspondences of 04.05.2005…

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