1978 Supreme(Pat) 214
PATNA HIGH COURT
S.K.Choudhuri, J.
Lakhpat Rai Hukum Chand
Versus
Chhedi Ram Rajkumar
Civil Revision No. 461 of 1977 ;
Decided On : SEPTEMBER 25, 1978
Headnote:Code of Civil Procedure, sec. 20 (c)-Cause of action means every fact which is material for the plaintiff to prove in order to obtain judgment in his favour-In relation to a contract cause of action arises at a place where the contract was made or place where the contract was to be performed or for the performance of the contract any money to which the suit relates was expressly or impliedly payable-The omission to do a part of the contract at the contracted place also gives rise to cause of action at that place. (Para 7)
1. The defendant has file this revision against the order date 9-4-1977 passed by the Subordinal Judge, Samastipur in money suit No. 137 of 1974 holding that the court has territorial jurisdiction to try the suit.
2. In order to appreciate the point is necessary to state the relevant facts from the plaint. The plaintiff opposite party is a registered firm dealing in wholesale grain business at Siliguri in the district of Darjeeling. The defendant is also a registered firm dealing similar business at Sona Mandi in the district of Sangrur in the State of Punjab. A contract between the plaintiff and the defendant was entered into in October, 1974, through a middle man of Siliguri whereby the defendant contracted to supply about 1400 bags of maize, by local purchase to the plaintiff. It is also the plaintiffs case that under the terms of contract after making purchase the defendant would despatch "goods to Barauni railway station on the North Eastern Railway and the relative R/R and hundi were to be sent to the Punjab National Bank, Waini drawn against M/s. Malik Singh Amrik Singh of Waini who had been appointed as a commission agent of the plaintiff for getting the supply of the said goods on behalf of the plaintiff after honouring the hundis drawn by the defendant against the goods and relative R/Rs and hundis were to be taken delivery of from the said bank on payment of the bill." It is also stated that M/s. Malik Singh Amrik Singh as commission agent of the plaintiff had to retire the hundi as settled between the plaintiff and the said firm and after sale of the goods in Waini they were to submit accounts to the plaintiff. These facts were fully known to the defendant who had agreed to carry out the same.
According to the case of the plaintiff the defendant purchased 384 bags of maize and despatched from Dhuri railway station to Barouni under two consignments and further despatched 1030 bags of maize from Nova to Barouni junction under four consignments. It is said that the aforesaid consignments covering 500 bags despatched from Nova along with two hundis were sent to Waini Punjab National Bank which were honoured and there is no dispute in relation to these two transactions. Two wagons covering 394 bags despatched from Dhuri reached the destination station, namely Barouni junction on 29-10-1974 and 30-10-1974 and the remaining two wagons carrying 530 bags of maize booked from Nova reached Barouni junction on 4-11-1974 and 5-11-1974 for which the plaintiff had already received a bijak but the relative hundi and the R/Rs were not sent to the Punjab National Bank, Waini as per contractual term. Accordingly the defendant was requested to send the indemnity bond for taking delivery as the consignments were lying at Barouni junction as heavy demurrage was to be paid due to the fault of the defendant and directed the defendants representative to take a draft for the amount under the hundi. It is stated that the plaintiff did not get any response. Thereafter the plaintiff sent one Foujdar Sah an agent and representative of M/s. Malik Singh Amrik Singh but the defendant did not take any step. In other words they sent a telegram that the hundis have been sent to the State Bank of India, Barouni by mistake instead of sending to the Punjab National Bank, Waini and the plaintiff was directed to take delivery of the hundis and R/R from the State Bank of India at Barouni. According to the case of the plaintiff on receipt of the telegram by the plaintiff on 8-11-1974 at 7 p.m. at Siliguri the plaintiff enquired at Barouni and learnt that the hundis and R/R have already been returned to the defendant on 7-11-1974.
The further case of the plaintiff is that in connection with the consignments of the two wagons containing 530 bags despatched from Nova reached Barouni junction on 5-11-1974 and the relative R/R and hundis were sent to the State Bank of India, Darbhanga against the term of the contract under which they should have been sen