An agreement between parties to submit disputes to a specific court for arbitration is valid and enforceable, and in such cases, the jurisdiction of other courts is excluded.

( 1 ) THIS is an application filed by S. C. Malik, herein called the petitioner , under Section 20 of the Arbitration Act, praying that the respondent, Union of India, be directed to file in Court, the arbitration agreement forming part of the contract, i. e. acceptance of tender No. Kan/1092-D/kp-6/86/paod dated February 16, 1968 and the disputes and differences between the parties be referred to arbitration by an order of reference.

( 2 ) A preliminary objection was raised on behalf of the Union of India that this Court has no territorial jurisdiction to entertain the application inasmuch as the contract was governed by the general conditions of contract contained in Form 68 (revised) which has the following Cl. 20 (3):-

"20 (3) Jurisdiction of Courts. The Courts of the place from where the acceptance of tender has been issued shall alone have jurisdiction to decide any dispute arising out of or in respect of the contract. "

( 3 ) THE following issue accordingly was framed to be tried as a preliminary issue:

"whether this Court has jurisdiction in the matter?"

( 4 ) IT is not disputed that the contract is governed by Form-DGS and D-68 (revised), which embodies the general conditions of contract applicable to contracts placed by the Central Government, Purchase Organisation of the Government of India, (now under the Ministry of Supply ). Clause 24 in the said form is the arbitration clause, the relevant portions of which provide, inter alia, as follows:

"24. In the event of any question, dispute or difference arising under these conditions or any special conditions of contract, or in connection with this contract, (except as to any matters the decision of which is specially provided for by these or the special conditions) the same shall be referred to the sole arbitration of an Officer in the Ministry of Law, appointed to be the arbitrator by the Director General of Supplies and Disposals. It will be no objection that the arbitrator is a Government servant, that he had to deal with the matters to which the contract relates or that in the course of his duties as a Government servant he has expressed views on all or any of the matters in dispute or difference. The award of the arbitrator shall be final and binding on the parties to this contract. xx xx xx The venue of arbitration shall be the place from which the acceptance note is issued or such other place as the arbitrator at his discretion may determine. xx xx xx"the contention of the learned counsel for the petitioner is that Clause 20 (3) is applicable only if a suit is filed in respect of the contract in question and not when the dispute is settled through arbitration under Clause 24 of the said Form 68 (revised ).

( 5 ) ACCORDING to the terms of the contract, the place of delivery has been mentioned as "free loose delivery at IGSD, Delhi". The place at which the stores are required to be tendered for inspection has been specified as "at IGSD, New Delhi. " Payment is stipulated to be made "by the Pay and Accounts Officer, Ministry of Works, Housing and Supply, New Delhi. " The contract, however, was accepted at Kanpur and the acceptance of the tender was issued from Kanpur. It is, therefore, not disputed that in the absence of arbitration clause, the civil Courts both at Kanpur and at Delhi would have had jurisdiction to entertain a suit concerning disputes arising out of the said contract. According to Clause 20 (3) (Supra), however, the Courts of the place from where the acceptance of tender has been issued, alone will have jurisdiction to decide any dispute arising out of or in respect of the contract.

( 6 ) NOW, it is well settled, and not disputed that where two courts have jurisdiction to try a matter, an agreement that the disputes will be tried by one of them only is valid and enforceable. The contention of Mr. Singhania. the learned counsel for the petitioner, is that the application under Section 20 of the Arbitration Act, is not a dispute arising out o