In Brief
The Supreme Court held that exclusive jurisdiction clauses in employment contracts are valid and enforceable under Indian law. Two HDFC Bank employees instituted suits in Patna and Delhi challenging their terminations, but the bank invoked exclusive jurisdiction clauses in their appointment agreements specifying Mumbai courts. The Court ruled that Section 28 of the Indian Contract Act does not bar such clauses; they do not take away the right to legal adjudication but merely confine disputes to agreed courts. Contracts must be enforced equally regardless of parties' bargaining power. The Court affirmed the Patna High Court's decision and set aside the Delhi High Court's judgment, directing the suits be transferred to Mumbai courts. All substantive merits remain open.
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