Karnataka High Court
Instruments Incorporated - Appellant
Versus
Industrial Cables (India) Ltd - Respondent
Decided On : 02-29-96
JURISDICTION - CONTRACTUAL DISPUTE - O. S. No. 2738j81 - C. P. C. - [Order 7, Rule 10-A] - The court held that the cause of action for the suit transaction arose within the jurisdiction of the Civil Court of Rajpura and that the relevant clause in the purchase order excluded the jurisdiction of the Civil Court at Bangalore. The plaintiff's right to appeal under O. 43, R. 1 (a), C. P. C. was not extinguished as he did not choose the procedural remedy under O. 7, R. 10-A, C. P. C.
Fact of the Case:
The plaintiff filed a suit for recovery of a sum of Rs. 20,534.90 from the defendants towards the value of the goods supplied. The defendants contested the suit on the ground that the Civil Court at Rajpura alone had jurisdiction to try the suit.
Finding of the Court:
The court found that the cause of action for the suit transaction arose within the jurisdiction of the Civil Court at Bangalore and that the clause in the purchase order did not expressly oust the jurisdiction of the Civil Court at Bangalore. The impugned order of the Court below was set aside, and the trial Court was directed to take the plaint on its file and proceed further to decide the other issues in the suit.
Issues: The main issue was whether the Civil Court at Bangalore had jurisdiction to entertain the plaintiff's suit, and whether the plaintiff's right to appeal under O. 43, R. 1 (a), C. P. C. was extinguished.
Ratio Decidendi: The court held that the cause of action for the suit transaction arose within the jurisdiction of the Civil Court at Bangalore, and that the clause in the purchase order did not expressly oust the jurisdiction of the Civil Court at Bangalore. The plaintiff's right to appeal under O. 43, R. 1 (a), C. P. C. was not extinguished as he did not choose the procedural remedy under O. 7, R. 10-A, C. P. C.
Final Decision: The impugned order of the Court below was set aside, and the trial Court was directed to take the plaint on its file and proceed further to decide the other issues in the suit.
( 1 ) THIS appeal by the plaintiff in O. S. No. 2738j81 on the file of the X Additional City Civil Court, Bangalore is filed challenging its order dated July 9,1990 passed on issue No. 4 on the basis of evidence therein, which was framed on the point of jurisdiction, holding that in view of the relevant contractual clause relating to the place of suing in case of dispute arising out of the suit transaction between the parties, it has no jurisdiction to entertain the plaintiffs suit; and, accordingly, notifying the plaintiff under Order 7, Rule 10-A (a) of the Code of Civil Procedure (C. P. C. for short) to represent his plaint to the proper Court.
( 2 ) THE facts giving raise to this appeal may be stated as under:the plaintiff is a proprietary concern engaged in manufacturing of the industrial devices called "flow Meters" for oils, petroleums etc. , and in dealing thereof. Its office is located at Bangalore.
( 3 ) RESPONDENTS Nos. 1, and 2 were defendants in the said O. S. No. 2738/81. They are referred to hereinafter as D1 and D2, respectively. D1 is a private company engaged in industrial activity. It is located at Rajpur of Patiala District in Punjab State. D2 is its Purchase Manager. Plaintiff sent leaf-lets to D1 advertising its products and soliciting purchase orders from it. Then D1 wanted the plaintiff to send its quotations for its consideration to place purchase orders with plaintiff for its said products.
( 4 ) ACCORDINGLY, Ex. P2 quotation dated 3-7-1980 was sent by plaintiff to D1 furnishing the particulars of the products and the price thereof. It was a general quotation. In response thereto, D1 sent its Ex. P3 purchase order dated 11-7-80 for supply of two Oil Flow Meters described therein. The plaintiff promptly despatched the said meters to D1 through railway together with connected papers for payment of the bill amount towards the price thereof. The plaintiff's said bill was duly honoured and paid by D1 through the concerned bank at Patiala. Again D1 placed its 2nd purchase order under Ex. P5 bearing No. PGS/os/105/25001 dated 25-7-1980 with plaintiff for supply of two Oil Flow Meters described therein of the price of Rs. 7,557/- and Rs. 8,062/- respectively. The said Flow Meters, stated in Ex. P5 were also despatched by plaintiff to D1 through railway from Bangalore on 5-8-1980 as borne out by the plaintiff's Ex. P8 carbon copy of the relevant document titled "godown Slip". Undisputedly, this godown slip is also called the 'despatch Memo'. Original of Ex. P8 was also sent by the plaintiff with the relevant bank papers to the concerned bank at Rajpura for payment of the bill amount by D1. This bill in respect of 2nd consignment despatched under Ex. P5 dated 25-7-1980 was not honoured by D1 on the ground that on taking delivery of said first consignment the same was found not satisfying the specification stated in the relevant D1's purchase order.
( 5 ) THEREAFTER, repeated demands with defendants were made by the Plaintiff to make payment for the said second consignment supplied by him. Notices were also exchanged between the parties. When D1 failed to make payment of the said consignment, the plaintiff filed his said suit i. e. , O. S. No. 2038/1981, in the Court below for recovery of a sum of Rs. 20,534. 90 from defendants towards the value thereof, inclusive of the sales tax and interest at 18% p. a. from the date of despatch of the said goods till 16-8-1980, and for future interest, costs etc.
( 6 ) THE defendants contested the plaintiff's suit on various grounds. They raised the objection, inter alia, on maintainability of the suit in the Court below on the ground that in view of the relevant clause No. 14 contained in Ex. P5 purchase order relating to the jurisdiction of the Court, the Civil Court at Rajpura alone has the jurisdiction to try the suit and the Court at Bangalore gets no jurisdiction to entertain the same.
( 7 ) ON the basis of respective pleadings of the parties the trial
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