Judgment-

K. N. SAIKIA

( 1 ) THIS is an appeal by special leave from the judgment and order of the High Court at Madras dated 4/11/1980 in C. M. A. No. 218 of 1978 allowing the appeal and setting aside the judgment of the subordinate judge at Salem in original suit No. 302 of 1975 on the preliminary question of jursidiction.

( 2 ) THE first appellant is a manufacturer and supplier of metallic yarn under the name and style rupalon Metallic Yarn having its registered office at Udyognagar, Mohamadabad, Gujarat within the jurisdiction of the civil Court of Kaira. The second appellant is a sister concern of the first appellant doing business with it. The respondent is a registered partnership firm doing business in metallic yarn and other allied products at Salem.

( 3 ) THE first petitioner entered into an agreement with the respondent on 2-10-1974 whereunder the appellants were to supply 5000 bobbins of Rupalon Metallic Yarn to the respondent at the rate of Rs. 35. 00 per bobbin as stipulated in different clauses of the agreement. Clause 11 of the agreement provided as follows:

"any dispute arising out of this sale shall be subject to Kaira jurisdiction. "

( 4 ) DISPUTES having arisen out