FAYSAL BANK LIMITED vs USMAN ENTERPRISES Ss — 2023 CLD 1563 LAHORE-HIGH-COURT-LAHORE

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FAYSAL BANK LIMITED VS USMAN ENTERPRISES Ss. 9 & 22---Contract Act (IX of 1872), S. 28---Civil Procedure Code (V of 1908), O. VII, R. 10---Suit for recovery of finance---Return of plaint---Choice of forum by agreement---Exclusive and non-exclusive jurisdiction clause---Scope---Plaintiff Bank was aggrieved of order passed by Banking Court returning its plaint to be filed before proper forum on the basis of a clause in finance agreement pertaining to jurisdiction---Validity---Parties by their agreement or consent could not invest Court with a jurisdiction where it did not exist in law nor could the parties divest a Court of its jurisdiction by such methodology---Where more than one Courts had jurisdiction in the matter, the parties could make choice by their agreement or consent for conferment of jurisdiction upon one Court to the exclusion of other and agreement in such behalf in normal circumstances was binding upon parties thereto---Such choice of forum by agreement was not contrary to the mandate of S. 28 of Contract Act, 1872---Condition precedent to make a choice by parties through an agreement was that the Court or Tribunal so chosen had the jurisdiction under law---Nature of jurisdiction agreed to between parties was to be decided by Court on true interpretation of the contract on the facts and in circumstances of the case---Banking Court not only misconceived / ignored distinction between such categories of forum selection clauses but also straight away ordered return of plaint without deliberating upon the same and without making any effort to ascertain real intent of parties under non-exclusive jurisdiction clause in the agreement---High Court set aside the order returning plaint to plaintiff bank and matter was remanded to Banking Court to decide the suit in accordance with law---Appeal was allowed accordingly.

FAYSAL BANK LIMITED vs USMAN ENTERPRISES Ss — 2023 CLD 1563 LAHORE-HIGH-COURT-LAHORE

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