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IN THE HIGH COURT OF CALCUTTA
Soumen Sen, J.
Cindrella Management Services Private Limited – Petitioner
Versus
Trend Bags and Anr. – Respondents
G.A. Nos. 244, 397 of 2014 & C.S. No. 23 of 2014
Decided On : 21-04-2015

Advocates Appeared:
For the Petitioner:Pratap Chaterjee, Sr. Adv., Samrat Sen, Reetobroto Mitra, Debasri Dutta, Advocates.
For the Respondent:Sudipto Sarkar, Surojit Nath Mitra, Sr. Advs., Prasanta Kr. Dutt, Rupak Ghosh, Susanta Kr. Dutt, Advocates.

A mortgage suit is a suit for land within the meaning of Clause 12 of the Letters Patent, and this Court would not have jurisdiction to entertain such a suit where the property is situated outside the local limits of the ordinary original civil jurisdiction of this Court.

Headnote:

EQUITABLE MORTGAGE - JURISDICTION - CAUSE OF ACTION - SUIT FOR LAND - SPECIFIC PERFORMANCE - TRANSFER OF PROPERTY ACT - RELIEF - INJUNCTION - MONEY DECREE - SPECIFIC RELIEF ACT - MORTGAGE SUIT - LEAVE GRANTED UNDER CLAUSE 12 OF LETTERS PATENT - DEMURRER APPLICATION - REVOCATION OF LEAVE - RETURN OF PLAINT - STATUS QUO ORDER - AFFIDAVIT-IN-OPPOSITION - ORAL SUBMISSION - MERITS OF INJUNCTION APPLICATION.

Fact of the Case:

Petitioner filed a suit for recovery of money and declaration that the defendant had created an equitable mortgage by deposit of title deed with the defendant in respect of the property mentioned in the schedule to the plaint. An ex-parte ad interim order was passed directing the first defendant to maintain status quo with regard to the Dargah Road property until 31st January, 2014. The said interim order was extended from time to time. During the pendency of the said application, the defendant No. 1 has filed a demurrer application praying for revocation of leave granted under Clause 12 of the Letters Patent and rejection of the plaint.

Finding of the Court:

The Court held that the suit was essentially in the nature of a mortgage suit and such a suit being a suit for land within the meaning of Clause 12 of the Letters Patent, this Court would not have jurisdiction to entertain the suit. The Court further held that the plaintiff had failed to claim further reliefs despite being able to seek the same, inasmuch as the prayers as made in the plaint would not give a complete relief to the plaintiff. The Court also held that no part of the plaintiff's cause of action had arisen within the local limits of the ordinary original civil jurisdiction of this Court. Moreover, a leave under Clause 12 of the Letters Patent is also required to be revoked on the ground of forum inconvenience.

Issues: 1. Whether this Court has jurisdiction to try and determine a suit for recovery of money and a declaration that the defendant has created an equitable mortgage by deposit of title deed with the defendant in respect of the property mentioned in the schedule to the plaint, where the property is situated outside the local limits of the ordinary original civil jurisdiction of this Court? 2. Whether the plaintiff is entitled to claim further reliefs despite being able to seek the same? 3. Whether any part of the plaintiff's cause of action has arisen within the local limits of the ordinary original civil jurisdiction of this Court? 4. Whether a leave under Clause 12 of the Letters Patent is required to be revoked on the ground of forum inconvenience?

Ratio Decidendi: 1. A mortgage suit is a suit for land within the meaning of Clause 12 of the Letters Patent, and this Court would not have jurisdiction to entertain such a suit where the property is situated outside the local limits of the ordinary original civil jurisdiction of this Court. 2. The plaintiff is not entitled to claim further reliefs despite being able to seek the same, if the prayers as made in the plaint would not give a complete relief to the plaintiff. 3. No part of the plaintiff's cause of action has arisen within the local limits of the ordinary original civil jurisdiction of this Court, if the property is situated outside the local limits of the ordinary original civil jurisdiction of this Court. 4. A leave under Clause 12 of the Letters Patent is required to be revoked on the ground of forum inconvenience, if the property is situated outside the local limits of the ordinary original civil jurisdiction of this Court.

Final Decision: The Court revoked the leave granted under Clause 12 of the Letters Patent and permitted the plaintiff to withdraw the suit and present the plaint before the appropriate Civil Court upon furnishing an authenticated copy of the plaint to the department concerned. The Court also directed that the interim order passed on 20th January, 2014 directing the first defendant to maintain status quo with regard to the Dargah Road property shall continue till the matter is being taken up by the appropriate Civil Court.

JUDGMENT :

Soumen Sen, J.

1. The petitioner has filed a suit for recovery of money and a declaration that the defendant No. 1 has created an equitable mortgage by deposit of title deed with the defendant No. 2 in respect of the property mentioned in the schedule to the plaint.

2. In an interlocutory application filed by the plaintiff, an ex-parte ad interim order was passed on 20th January, 2014 directing the first defendant to maintain status quo with regard to the Dargah Road property until 31st January, 2014.

3. The said interim order was extended from time to time.

4. During the pendency of the said application, the defendant No. 1 has filed a demurrer application praying for revocation of leave granted under Clause 12 of the Letters Patent and rejection of the plaint.

5. The principal ground of challenge appears to be that the property alleged to have been mortgaged in favour of the plaintiff is situated at Dargah Road, Kolkata outside the local limits of the ordinary original civil jurisdiction of this Court and, accordingly, this Court has no jurisdiction to try and determine any dispute in relation to the said immovable property. The suit, in pith and substance, is essentially in the nature of a mortgage suit. Such a suit being a suit for land within the meaning of Clause 12 of the Letters Patent, this Court would not have jurisdiction to entertain the suit. The petitioner has placed reliance upon a decision in Hongkong and Shanghai Banking Corpn. v. Official Assignee of Calcutta reported at AIR 1959 Cal 616.

6. The next ground of challenge appears to be that the plaintiff being able to claim further reliefs has failed to do so and in view of proviso to Section 34 of the Specific Relief Act, the plaintiff is not entitled to claim declaration for equitable mortgage. It is argued that the plaintiff besides claiming a money decree has prayed for a decree for declaration regarding the creation of equitable mortgage but no further relief has been claimed despite being able to seek the same, inasmuch as the prayers as made in the plaint would not give a complete relief to the plaintiff. The petitioner has referred to the following decisions for the aforesaid propositions: -

i. Anila Bala Devi v. Madhabendu Narain Roy & Anr., reported at AIR 1942 Cal. 245.

ii. Meharchand Das v. Lal Babu Siddique & Ors. reported at AIR 2007 SC 1499.

iii. Vinay Krishnan v. Keshav Chandra & Anr. reported at AIR 1993 SC 957.

iv. Sri Dipendra Lal Shaw v. Sri Gaurav Virendra Sanghvi & Ors. reported at 2009 (1) WBLR 310 (Cal) (Paragraphs 15 and 16)

7. It is argued that no part of the plaintiff's cause of action has arisen within the local limits of the ordinary original civil jurisdiction of this Court. The plaintiff, in any event, seeks to create an illusion of a cause of action existing in its favour by clever drafting although there is none and there is no right to sue. No part of the plaintiff's cause of action has actually arisen within the local limits of the ordinary original civil jurisdiction of this Court. Moreover, a leave under Clause 12 of the Letters Patent is also required to be revoked on the ground of forum inconvenience.

8. It is submitted that the cause of action as alleged in the plaint is absurd. The cause of action is based on an alleged loan granted to the defendant No. 1 and alleged non-payment thereof. The plaintiff and the defendant No. 1 both carrying on business and have their respective offices situated outside the jurisdiction of this Court. The defendant No. 2 is alleged to have an office within the jurisdiction of this Court. The defendant No. 2 is alleged to be a mere agent of the plaintiff. The defendant No. 2 is the agent of a disclosed principle and, accordingly, is neither a proper nor a necessary party. The plaint does not disclose any cause of action against the defendant No. 2 nor has any relief been claimed against him. The defendant No. 2 has been impleaded only to create jurisdiction of this Court. That a suit would not









































































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