Supreme Court in the matter of Indus Mobile Vs. Datawind Innovations; Civil appeal no. 5370-5371/2017 in a landmark judgment has modified the understanding of law with regard to jurisdiction of Court. Age old law that parties cannot confer jurisdiction on a Court by an agreement between the parties is no longer applicable to arbitration proceedings.
The Supreme Court after considering the amendment in Section 20 of the Arbitration and Conciliation Act 1996 by way of amendment Act of 2015 held that the clause in an agreement agreeing to the jurisdiction of a Court will confer jurisdiction to that Court notwithstanding that neither the defendants reside and work for gain nor any cause of action arose in the said place. Proceedings under the Arbitration Act will not be limited by Section 16 to 21 of Code of Civil Procedure Code.