M/S Hanil Era Textiles Ltd vs M/S Puromatic Filters (P) Ltd

The Supreme Court held that the jurisdiction for legal proceedings arising from a contract is determined by the terms agreed upon by the parties, specifically referencing Clause 17 of the Local Purchase Order which stipulates jurisdiction in Mumbai. The Court found that the High Court of Delhi erred in asserting jurisdiction as the contract was formed in Bombay and payments were made there, thus the suit should have been filed in Mumbai. The appeal was allowed, and the plaint was directed to be returned for presentation in the appropriate court in Mumbai under Section 20 CPC.