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Issues Involved:
1. Jurisdiction of the Court to entertain and try the suit. 2. Validity of the exclusive jurisdiction clause in the distributorship agreement. 3. Applicability of foreign law and the necessity of filing an affidavit of an expert on Italian law. Detailed Analysis: 1. Jurisdiction of the Court to entertain and try the suit: The primary issue was whether the Delhi High Court had jurisdiction to entertain and try the suit filed by the plaintiff. The plaintiff argued that since all activities related to the distributorship agreement occurred in India, the Delhi High Court had jurisdiction under Section 20 of the CPC. The defendant contended that the exclusive jurisdiction clause in the distributorship agreement, which designated the Italian Court in Milan as the exclusive forum for dispute resolution, should be upheld. The court noted that the distributorship agreement explicitly stated that any dispute, including those concerning validity, interpretation, performance, and termination, would be subject to the exclusive jurisdiction of the Italian Court in Milan. The court emphasized that such clauses are generally upheld unless they violate domestic law or public policy. 2. Validity of the exclusive jurisdiction clause in the distributorship agreement: The court examined whether the exclusive jurisdiction clause in the distributorship agreement was valid and enforceable. The plaintiff argued that the clause should be ignored as it was contrary to public policy, given that all activities related to the agreement occurred in India. The court referred to the Supreme Court's judgment in Modi Entertainment Network v. W.S.G. Cricket Pte. Ltd., which upheld the validity of exclusive jurisdiction clauses, even if they designated a foreign court as the forum for dispute resolution. The court concluded that the clause was clear and unambiguous, and the parties had freely negotiated and agreed to submit to the jurisdiction of the Italian Court in Milan. The court held that such clauses are not contrary to public policy and should be enforced unless there are strong reasons to the contrary. 3. Applicability of foreign law and the necessity of filing an affidavit of an expert on Italian law: The defendant argued that the suit was not maintainable as the plaintiff had not filed an affidavit of an expert on Italian law, which was the governing law of the distributorship agreement. The court noted that the distributorship agreement explicitly stated that it would be governed by and construed in accordance with the laws of Italy. The court held that the issue of the applicability of foreign law and the necessity of filing an affidavit of an expert would only arise if the court decided to entertain the suit. Since the court decided not to entertain the suit based on the exclusive jurisdiction clause, it did not delve into the necessity of filing an affidavit of an expert on Italian law. Conclusion: The court concluded that it did not have jurisdiction to entertain and try the suit due to the clear and unambiguous exclusive jurisdiction clause in the distributorship agreement, which designated the Italian Court in Milan as the forum for dispute resolution. The court held that such clauses are generally enforceable unless they violate public policy or there are strong reasons to the contrary. Consequently, the court returned the plaint to enable the plaintiff to file the action in an appropriate court in Italy.
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