Swastik Gases v. IOCL

Swastik Gases and IOCL had a consignment agency agreement. Clause 18 said the agreement was “subject to the jurisdiction of the courts at Kolkata.” A Section 11 arbitration application was filed in Rajasthan. The Supreme Court held that even without words like “only” or “exclusive,” the clause showed a clear intent: courts at Kolkata alone would decide. The application in Rajasthan could not be entertained.

• In view of Clause 18, did the Calcutta High Court have exclusive jurisdiction over a Section 11 application?

• Jurisdiction clauses need not say “alone/only/exclusive.” Clear party intent can still make them exclusive.
• If multiple courts have jurisdiction (Section 11(12)(b), Section 2(e) A&C Act, read with Section 20(c) CPC), parties may choose one.
• Expressio unius est exclusio alterius: naming one forum implies exclusion of others unless stated otherwise.
• Such clauses do not offend Sections 23 or 28 of the Contract Act.

The Supreme Court held that the Calcutta High Court had exclusive jurisdiction. Even without using words like “only” or “exclusive,” Clause 18 showed clear intent to choose Kolkata courts and thereby exclude others. The Section 11 application before the Rajasthan High Court was not maintainable.

• Specifying courts at a place—when those courts are otherwise competent—implies exclusivity unless stated otherwise.
• Expressio unius principle supports reading the clause as excluding other forums.

Drafting tip: You do not need magic words. If you name a competent forum in the contract, courts may treat it as the only forum, ensuring predictability in arbitration-related filings.

• Jurisdiction clause can be exclusive by clear intent alone.
• Choosing one of several competent courts is valid and enforceable.
• Section 11 applications must respect the chosen court.

Mnemonic: NAME → ONLY — Name one competent court → treated as the only court.

1. Check if multiple courts are competent.
2. See if the clause names one place.
3. Assume others are excluded unless the contract says otherwise.

Issue: Does Clause 18 confine Section 11 proceedings to Kolkata courts?

Rule: Naming a competent forum can imply exclusivity; express words like “only” are not essential.

Application: Clause 18 names Kolkata courts; cause of action also arose there; by implication other forums excluded.

Conclusion: Calcutta High Court has exclusive jurisdiction; Rajasthan petition not maintainable.

Section 11 (A&C Act)

Court’s role in appointing arbitrators when a party defaults.

Exclusive Jurisdiction Clause

Contract term selecting one of several competent courts to the exclusion of others.

Expressio unius

Express mention of one thing implies exclusion of the rest.