Section 28

This section states that every agreement, by which any party to a contract, is restricted from enforcing his rights under or in respect of the contract by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to that extent. According to Section 28 of the Indian Contract Act, 1872, 'Every agreement, by which any party to a contract, is restricted from enforcing his rights under or in respect of the contract by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to that extent.' However, Section 28 does not render void an agreement by which the parties to a contract agree to refer their disputes to arbitration. The court in the case of M/s. Indian Farmers Fertiliser Co-operative Ltd. v. M/s. Bhadra Products held that an agreement that restricts a party from approaching a court is void, but an agreement that provides for arbitration is valid.