JURISDICTION

Querist : Anonymous (Querist) 19 June 2011 This query is : Resolved
ONE OF MY FRIEND WORKING AS A PARTNER IN THE PARTNERSHIP FIRM. THEIR REGISTERED OFFICE AT PLACE "A"AND THEY ARE HAVING ANOTHER CORPORATE OFFICE AT PLACE "B", BOTH OFFICES ARE SITUATED IN SAME CITY BUT IN DIFFERENT TERRTORY AND DAY TO DAY AFFAIRS ARE HANDING BY THEM AT OFFICE PLACE AT "B".
NOW ONE MR."x" HAS PLACED AN ORDER TO MY FRIEND AT OFFICE "B" AND MY FRIEND HAS DELIVERED IT TO "x" FROM THE OFFICE PLACE AT "B", THAN AFTER MR. "x" DEFUALTED IN PAYMENT THEREFORE MY FRIEND HAS FILED CIVIL SUIT U/O 37 OF THE C.P.C.
IN SAID SUIT DEFENCE LAWYER HAS RAISED AN OBJECTION IN LEAVE TO DEFEND, THAT SUIT IS NOT MAINTAINABLE BCOZ SUIT IS FILED IN THE JURISDICTION WHERE OFFICE "B" IS SITUATED, SUIT SHOULD HAVE BEEN FILED IN THE JURISDICTION WHERE OFFICE"A" IS SITUATED BCOZ IT IS A REGISTERED OFFICE.
MOREOVER IN SAID SUIT IT IS MENTIONED AND ASK EVERY PRAYERS UNDER CODE OF CIVIL PROCETURE,1907 INSTEAD OF 1908,WHETHER WILL IT EFFECT THE SAID SUIT.
PLS. GUIDE ME WHAT WILL THE OUTCOME.

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PALNITKAR V.V. (Expert) 19 June 2011
The objection is not tenable. It is not mandatory that suit should be filed in the jurisdiction where A situates. B is the place where A is carrying on business. Transaction has taken place there. hence, cause of action has taken place there itself. Seems that the objection is taken just to kill time. Secondly, 1907 or 1908 would not make any difference.

R.Ramachandran (Expert) 19 June 2011
Section 20 of the CPC 1908 is quite clear on the subject. Section 20 provides that:

20. Other suits to be instituted where defendants reside or cause of action arises.

Subject to the limitations aforesaid, every suit shall be instituted in Court within the local limits of whose jurisdiction-

(a) the defendant, ....at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or

(c) the cause of action, wholly or in part, arises.
...

2[Explanation].-A corporation shall be deemed to carry on business at its sole or principal office in 3[India] or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place.

In the instant case, as rightly pointed out by Mr. Palnitkar, the suit has been instituted in a court under whose jurisdiction the defendant (i) actually and voluntarily resides, carries on business, and personally works for gain;

and also

(c) the cause of action, wholly has arisen.

Therefore, the objection of the defendant will not stand.

Similarly, the wrong mentioning of CPC as 1907 instead of 1908 will not in any manner affect the case at all.