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2026 Supreme(Bom) 150

IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR.
ROHIT W. JOSHI, J.
HDFC Bank Limited - Appellant 
Versus
Mrs. Archana w/o Sachin Dongre – Respondent 
CIVIL REVISION APPLICATION NO. 04 OF 2026
Decided on : 06-04-2026

Advocates Appeared:
For the Appellant :Mr.V. V. Bhangde, Advocate
For the Respondent:Mr. Amit Khare, Advocate

Prior final orders on territorial jurisdiction operate as res judicata in same suit, barring fresh challenges via subsequent superior court judgments on identical clauses; procedural defects bind unless set aside.

Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rule 10, Section 11, Order 47 Rule 1, Section 21(1) - Territorial jurisdiction - Exclusive jurisdiction clause in employment appointment letter providing disputes subject to courts at specific location - Employee suit for declaration, service restoration, damages after termination - Trial court rejects return of plaint holding cause of action arose locally, confirmed in revision and review - Subsequent superior court judgment in identical clause case holds exclusive jurisdiction at specified courts - Fresh application for return of plaint rejected as res judicata - Held: Earlier order on territorial jurisdiction, though erroneous post subsequent judgment, operates as res judicata in same suit/same cause of action; territorial jurisdiction is procedural defect, not inherent nullity; change in law interpretation no exception when proceeding/cause unchanged; cannot bypass review bar via fresh application. (Paras 12-40)

(B) Jurisdiction - Inherent vs procedural (territorial) - Orders lacking inherent jurisdiction are nullities; procedural jurisdiction errors binding unless set aside; courts may err within jurisdiction. (Paras 14-17)

(C) Res judicata - Exceptions inapplicable - Pure law question/erroneous jurisdiction decision not res judicata only in different cause of action; applies squarely in same suit. Explanation to Order 47 Rule 1 bars review on subsequent law change. (Paras 22, 26-35)

Facts of the case:
Employee terminated services files suit where employed, claiming local cause of action despite appointment clause stipulating exclusive jurisdiction elsewhere. Initial application for plaint return rejected; revision and review dismissed attaining finality. Post finality, superior court rules such clauses confer exclusive jurisdiction in parallel case. Defendants file second plaint return application invoking superior court ruling; rejected on res judicata.

Findings of Court:
Civil revision application dismissed; trial court order upheld.

Issues: Whether res judicata bars fresh plaint return application based on subsequent superior court interpretation of identical jurisdiction clause; whether territorial jurisdiction defect is inherent nullity overriding prior final orders; applicability of res judicata exceptions for law change/erroneous jurisdiction rulings in same proceeding.

Ratio Decidendi: Prior final orders on procedural territorial jurisdiction bind parties as res judicata despite subsequent superior court law clarification in another case; no relitigation permitted in same suit; distinguishes inherent from procedural jurisdiction; aligns with public policy of litigation finality over repeated challenges.

Result: Civil Revision Application dismissed, no order as to costs.

Table of Content
1. supreme court upholds exclusive mumbai jurisdiction clause (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. exceptions to res judicata for jurisdiction errors, law changes (Para 12 , 13)
3. procedural jurisdiction defects not nullities, binding unless set aside (Para 14 , 15 , 16 , 17 , 18)
4. prior final territorial order operates as res judicata (Para 19 , 20 , 21 , 22 , 23 , 24)
5. mathura prasad exceptions: inherent jurisdiction, different causes (Para 25 , 26 , 27 , 28)
6. res judicata fundamental; exceptions for new causes of action (Para 29 , 30 , 31 , 32 , 33)
7. same cause precludes relitigation despite subsequent law change (Para 34 , 35 , 36)
8. contract excludes territorial, not inherent jurisdiction (Para 37 , 38 , 39)
9. second jurisdiction application barred; revision dismissed (Para 40 , 41)

JUDGMENT :

ROHIT W. JOSHI, J.

1) The present Civil Revision Application is filed in order to challenge order dated 26.08.2025 passed by the learned 26th Joint Civil Judge, Senior Division, Nagpur, on application at Exhibit 49 in Special Civil Suit No.347 of 2017.

2) The applicants are defendants in the said suit. The respondent/plaintiff filed the aforesaid suit for declaration, restoration of service and claim for damages in view of termination of her services by the applicants on 28.02.2017. The plaintiff was working with the defendants as Relationship Manager at Nagpur. She filed the aforesaid suit at Nagpur contending that cause of action for filing the suit arose at Nagpur. Averments regarding territorial jurisdiction are made in paragraph 22 of the plaint, which reads as under:-

“The plaintiff states that her interview was conducted at Nagpur. Her appointment letter also points out the place at Nagpur. The entire work was done at Nagpur. The plaintiff further states that the defendants are residing at Nagpur. Similarly, the plaintiff all throughout worked at Nagpur. The entire communications were done by the plaintiff at Nagpur and her performance were reviewed at Nagpur. Likewise, the termination letter was also issued at Nagpur. Thus, in such facts and circumstances the entire cause of action was at Nagpur and hence this Hon’ble Court has proper jurisdiction to try and entertain the instant case for its proper adjudication and justice.”

3) The plaintiff was appointed in service vide appointment order dated 06.12.2013. The appointment order provides that any dispute in relation to the employment of the plaintiff will be subject to exclusive jurisdiction of Courts at Mumbai.

4) The defendants had filed an application vide Exhibit-9 under Order VII Rule 10 of the Code of Civil Procedure, 1908, (for short, the CPC) contending that the learned Trial Court did not have the territorial jurisdiction to entertain the same in view of the clause conferring exclusive jurisdiction upon Courts at Mumbai.

5) The said application was rejected by the learned Trial Court vide order dated 05.04.2018. The learned Trial Court has observed that the entire cause of action had arisen at Nagpur and the defendants also had a branch office at Nagpur and therefore Courts at Mumbai did not possess jurisdiction to entertain the suit. The learned Trial Court referred to the settled legal position that although parties may restrict jurisdiction to one of two Courts, when both the Courts have the jurisdiction, they cannot by contract confer jurisdiction on a Court which otherwise is not vested with it.

6) Being aggrieved by the said order, the defendants challenged the same before this Court in Civil Revision Application No.81 of 2018. The Civil Revision Application came to be rejected vide judgment dated 16.08.2018 on the same ground, i.e., the Courts at Mumbai did not have jurisdiction and therefore by way of agreement, jurisdiction could not be conferred.

7) The present applicant filed application for review, being MCA No.967 of 2018 which came to be rejected by this Court vide order dated 09.07.2008.

8) After the review was rejected, a sim

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