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N.K.Assumi (Advocate)     13 August 2012

Which is the right jurisdiction?

A company from the State Z flouted an advertisement and issued subscripttion Form for deposit of money to repay with 6% interest on maturity after one year. The Form was issued to the depositors  through the company's agents in State Y by the depositors and after collection by the agent of the Comopny from the depositors in State Y, and the agent deposited the money in the Company's branch in the State Z. The company disappeared with huge amount of about one crore from the State Y depositors. Question is which State has Jurisdiction to try the case against the company. State Z where the Company Office is located and the Dirtectors resides, or the State Y where the depositors resides? Thanking you all in advance.


 3 Replies

ABHIJEET PARIKH (Bcom LLB MBA)     13 August 2012

Dear Assumi

Ideally it should be state y Bcoz it is the state were monies were raised and depositor were aggrieved.



N.K.Assumi (Advocate)     13 August 2012

Thanks Abhijeet, let us wait and see for more responds.

surjit singh (Assistant)     14 August 2012

Generally when the company must have been registered naturally it must have been mentioned that all dispute is subject to the jurisdiction of that particular state Z , but since the transaction was permitted to be done by its agent in State Y, the jurisdicton should be state Y, .

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