PRANAB KUMAR CHATTOPADHYAY AND TAPAN MUKHERJEE, JJ.
Oriental Bank of Commerce
versus
Santosh Kumar Agarwal.
A.P.D. No. 179 of 2001
Decided on : 15 -5 -2008.
JURISDICTION - BANKING - CAUSE OF ACTION - ORDINARY ORIGINAL CIVIL JURISDICTION - BRANCH OFFICE - REGIONAL OFFICE - CONTROL OF BRANCH OFFICE - PAYMENT OF MONEY - REFUSAL TO PAY - EXERCISE OF LIEN - PLACE OF OCCURRENCE - TERRITORIAL JURISDICTION - LACK OF JURISDICTION - NULLITY OF DECREE - RETURN OF PLAINT.
Fact of the Case:
Plaintiff filed a suit in the Ordinary Original Civil Jurisdiction of the Calcutta High Court for recovery of moneys allegedly deposited by him with the defendant bank, Oriental Bank of Commerce, at its Khidderpore branch, which was outside the Ordinary Original Civil Jurisdiction of the High Court. The defendant bank contested the suit on the ground of lack of jurisdiction, contending that no part of the cause of action arose within the Ordinary Original Civil Jurisdiction of the High Court.
Finding of the Court:
The High Court held that the cause of action in the suit arose from the refusal to pay any amount in respect of the Fixed Deposits by the Khidderpore branch of the bank which took place outside the Ordinary Original Civil Jurisdiction of the High Court. The decision not to pay was taken by the Delhi office of the bank and was implemented at the Khidderpore branch. The making of the decision with regard to non-payment of the Fixed Deposits in question was not made a part of the cause of action. The High Court further held that Section 21 of the Code of Civil Procedure, which deals with waiver of territorial jurisdiction, does not apply to the High Court in the exercise of Original Civil Jurisdiction.
Issues: 1. Whether the High Court had jurisdiction to entertain the suit filed by the plaintiff? 2. Whether the cause of action in the suit arose within the Ordinary Original Civil Jurisdiction of the High Court?
Ratio Decidendi: 1. The High Court held that it did not have jurisdiction to entertain the suit filed by the plaintiff as no part of the cause of action arose within the Ordinary Original Civil Jurisdiction of the High Court. 2. The High Court held that the cause of action in the suit arose from the refusal to pay any amount in respect of the Fixed Deposits by the Khidderpore branch of the bank which took place outside the Ordinary Original Civil Jurisdiction of the High Court.
Final Decision: The High Court set aside the judgment and decree passed by the learned Single Judge on the ground of lack of jurisdiction of the trial court to entertain and decide the suit. The High Court directed the return of the plaint to the plaintiff's advocate-on-record for the purpose of presentation of the same to the proper court.
PRANAB KUMAR CHATTOPADHYAY, J. :- This appeal has been preferred at the instance of the defendant-Oriental Bank of Commerce from the judgment and decree dated 18th January, 2001 passed in C. S. No. 216 of 1996.
2. The claim of the plaintiff in the suit is based on several Fixed Deposits mentioned in the Schedule being Annexure 'A' to the plaint. All the aforesaid Fixed Deposits were admittedly made jointly by the plaintiff and the pro forma defendant at the Khidderpore branch of the Oriental Bank of Commerce, which is outside the Ordinary Original Civil Jurisdiction of this Hon'ble Court.
3. The judgment and decree passed by the learned Single Judge was assailed by the defendant-appellant bank on various grounds mentioned in the Memorandum of Appeal. The learned Senior Counsel representing the appellant-bank concentrated the argument mainly on the ground of jurisdiction as according to the appellant, suit filed by the plaintiff is not at all maintainable in the Ordinary Original Civil Jurisdiction of this Hon'ble Court since according to the said appellant, no part of the cause of action has arisen within the Ordinary Original Civil Jurisdiction of this Hon'ble Court, Since the point of jurisdiction was strongly urged on behalf of the appellant amongst other issues mentioned in the Memorandum of Appeal, we are of the opinion that the said issue relating to the jurisdiction of this Court to entertain the suit filed by the plaintiff should be decided first before deciding any other issue involved in this appeal.
4. It has been specifically stated by the plaintiff in the plaint that even after maturity of the aforesaid Fixed Deposits, the defendant bank wrongfully and illegally withheld the payment against the said Fixed Deposits. The plaintiff, therefore, filed the suit in this Court in its Ordinary Original Civil Jurisdiction for recovery of the moneys that were claimed to have been deposited by the said plaintiff with the defendant No. 2, Oriental Bank of Commerce, at its Khidderpore Branch.
5. The cause of action as pleaded in the plaint filed by the plaintiff is based on the following acts or factors :-
a) Payment of moneys to the Oriental Bank of Commerce for the purpose of making the Fixed Deposits;
b) Refusal by the bank to pay the money to the concerned parties on maturity of the Fixed Deposits; and
c) Exercise of lien by the bank.
6. According to the learned Advocate representing the appellant, each one of the aforesaid acts, namely, payment of moneys, refusal to pay the money to the concerned parties on maturity of the Fixed Deposits by the Oriental Bank of Commerce and exercise of lien by the said bank took place at the Khidderpore branch of the bank, which is outside the Ordinary Original Civil Jurisdiction of this Hon'ble Court.
7. The plaintiff herein has admittedly filed the suit impleading the Oriental Bank of Commerce as defendant No. 1 in the following manner :
1. Oriental Bank of Commerce, a body corporate having its Regional Office at No. 107/1, Park Street, Calcutta-700 016, within the jurisdiction of this Hon'ble Court and carrying on business from the said Regional Office.
.........Defendant.
8. The defendant No. 2 is the pro forma defendant and no relief has been claimed against the said pro forma defendant. The defendant No. 1 contested the suit by filing written statement. It was specifically urged on behalf of the defendant bank before the trial Court that this Court has no jurisdiction to entertain, try and determine the suit since no part of the cause of action has arisen within the Ordinary Original Civil Jurisdiction of this Hon'ble Court. It has been specifically urged on behalf of the appellant that the cause of action in the suit is for non-payment of money allegedly due and payable from the Khidderpore branch of the Oriental Bank of Commerce, which is outside the Ordinary Original Civil Jurisdiction of this Hon'ble Court.
9. Mr. Hirak Mitra, learned Senior Counsel representing the appellant submits
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