Law:

Section:

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997) -- S.9 Civil Procedure Code (V of 1908), S.20 & O.VII, R.10 Suit for damages by customer on account of alleged breach of finance agreement by Bank Return of plaint for its presentation before Court at place K Validity Such agreement executed at place K provided that Court at place K would be the proper Court to entertain all matters arising out of or under such agreement Such clause, wherein though words "only" or "exclusive" were not mentioned, clearly spelt out intention of parties that in case of dispute arising between them with regard to breach of finance agreement, which would include failure to disburse agreed facility or its recalling ,and every nature of dispute having nexus with finance agreements during their subsistence or even thereafter, would be tried by Court at place K, rather than any by any other Court Subsequent establishment of letters of credit at place L or refusal of Bank to disburse amount by its office at place L or rescission of agreement by its office at place L, by itself would not be a cause of action taking case out of ambit of such clause No error was found in impugned High Court dismissed appeal. 2001 MLD 352; 1999 CLC 954 and PLD 2002 Kar. 420 distinguished. (b) Jurisdiction Two or more Courts having jurisdiction in matter Parties could validly agree for conferment of jurisdiction upon one of such Courts to the exclusion of other. JUDGMENT MIAN SAQIB NISAR, J. The appellants/ plaintiffs brought a suit for damages against the respondent before this Court as Banking Court, claiming that the respondent, by virtue of two agreements dated 19 5 1993 and 20 5 1993, had agreed to provide finance facility to the petitioners but subsequently, in breach of the agreements, such facility was not provided, rather the agreements have been wrongly and illegally terminated, which has caused loss to the appellants enumerated in the suit. The respondent applied for leave to appeal and defend the suit, in which an objection was raised qua the jurisdiction of this Court, on the ground that under clause, 10.06 of the above agreements, the jurisdiction to…

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