Exclusive Jurisdiction Clauses Valid!SC Rules on Contract Jurisdiction | Section 28 Contract Act

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📢 The Supreme Court in a major 2025 ruling has clarified that exclusive jurisdiction clauses in contracts, including employment agreements, are NOT barred under Section 28 of the Indian Contract Act, 1872. In the case Rakesh Kumar Verma v. HDFC Bank Ltd., the Court held that such clauses are valid if the selected court already has jurisdiction under CPC.

📌 The Court also overruled Delhi High Court’s earlier interpretation in Vishal Gupta v. L&T Finance, reinforcing that contracts are binding regardless of the relative strength of the parties – whether it’s a “mighty lion” or a “timid rabbit”!🔔 SUBSCRIBE NOW for more legal updates & Judiciary exam-focused content!

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