State Of Rajasthan vs Gujarat State Construction ... on 15 September, 1987
6. Oil behalf of the respondent, it as contended before the trial Court relying upon the two decisions of this Court, in the case of Snehalkumar Sarabhai v. Economic Transport Organisation, AIR 1975 Guj 72, and the case of Rai and Sons Pvt. Ltd. v, Trikamji Kanji Gajjar and Sons, (1975) 10 Guj LR 31 that Clause 41 does not create any total bar of jurisdiction as a matter of law, but the Court had discretion in the matter. In Snehalkumar Sarabhai' s case (supra), N4. P, Thakkar, J. (as fie then was) held that while parties can lawfully enter into an agreement to restrict the dispute to a particular court having jurisdiction that stipulation, though valid, could not take away the jurisdiction of the Court which had otherwise jurisdiction to try the matter. The ouster clause could operate as an estoppel against the parties to the contract, but it could riot tie down the power of the Court to do justice. In other words, the stipulation to confine the jurisdiction of the Court by the parties in one of the Courts does not have the effect of divesting the other Court of its jurisdiction, if it has a jurisdiction under law to decide the matter. The Court which has a jurisdiction in the matter is not bound by the stipulation entered into between the parties and could ignore the stipulation, if that Court considers having regard to the facts and circumstances of the case before it that such a stipulation would oppressively operate against one of the parties.