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2018 Supreme(Chh) 725

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
PARTH PRATEEM SAHU, J.
Minwool Rock Fibers Ltd. – Appellant
Versus
Steel Plant of India Ltd. and Ors. – Respondents
First Appeal No. 20 of 2003
Decided On : 14-12-2018

Advocate Appeared:
For the Appellant :Syed Majid Ali, Advocate
For the Respondents:H.B. Agrawal, Senior Advocate, G.L. Uike, Saurabh Kumar Pande and Meera Jaiswal, Advocates

Headnote:

Civil Procedure Code,1908 - Section 20 - Order XXIX - Rule 1 - Arbitration Act, 1940 - Section 20 - Indian Contract Act, 1872 - Section 28 and 23 - Purchase order - Supply of Mineral Wool - Decreed - Appellant/plaintiff was having its head corporate office and local office - Appellant/plaintiff is a company registered under Companies Act and its branches are also situated - Appellant/company received a purchase order (Annexure P/4) from respondent/defendant No. 2 on for supply of Mineral Wool for PBCC project, SAIL, RSP, Rourkela - Respondent/defendant No. 2 as per address mentioned in purchase order is having its place of business at Industrial Estate, Bhilai District Durg - Purchase order has been made by respondent No. 2 to appellant/plaintiff with certain terms and conditions - Purchase order was a written document, which also bears terms and conditions with respect to price, dispatch, insurance, tax, delivery, damages, payments and other conditions including territorial jurisdiction of competent Court in case any dispute arises in supply of articles mentioned in purchase order - Held, Court is of opinion that case or any part thereof may be disposed of on issue of law, it may try that issue first if that issue relates to jurisdiction of Court or a bar to suit created by any law - Court to try issues of law in first instance and to postpone settlement of issues of fact until after issues of law had been determined - On other hand, in amended provision there is a mandate to Court that notwithstanding that a case may be disposed of on a preliminary issue, Court has to pronounce judgment on all issues - Only exception to this is contained in sub-rule (2) -This sub-rule relaxes mandate to a limited extent by conferring discretion upon Court that if Court is of opinion that case or any part thereof may be disposed of "on an issue of law only, it may try that issue first - Exercise of this discretion is further limited to contingency that issue to be so tried must relate to jurisdiction of Court or a bar to suit created by a law in force - In opinion of this Court, both issues formulated as preliminary issues are issues with respect to law - Therefore, learned trial Court has not committed any illegality in deciding suit only on preliminary issues framed by it - Court do not find any merit in case or any ground for interfering with impugned judgment and decree dated passed by learned trial Court - In result, appeal therefore fails - It is dismissed.

JUDGMENT :

Parth Prateem Sahu, J.

1. The appellant/plaintiff has assailed the impugned judgment and decree dated 12/09/2002 passed by learned First Additional District Judge, Rajnandgaon, Chhattisgarh in Civil Suit No. 1-B/1998 whereby the learned trial Court dismissed the suit after framing and deciding two preliminary issues.

2. Brief facts for disposal of this appeal, are that appellant/plaintiff was having its head corporate office at Hyderabad and local office at Vardhman Nagar, Rajnandgaon. Appellant/plaintiff is a company registered under the Companies Act and its branches are also situated at Bombay, Madras and New Delhi. Appellant/company received a purchase order (Annexure P/4) from respondent/defendant No. 2 on 28/06/1996 for supply of Mineral Wool for PBCC project, SAIL, RSP, Rourkela.

3. Respondent/defendant No. 2 as per address mentioned in the purchase order is having its place of business at Industrial Estate, Bhilai District Durg. The purchase order has been made by respondent No. 2 to the appellant/plaintiff with certain terms and conditions. The purchase order was a written document, which also bears terms and conditions with respect to price, dispatch, insurance, tax, delivery, damages, payments and other conditions including territorial jurisdiction of the competent Court in case any dispute arises in supply of the articles mentioned in the purchase order.

4. The appellant/plaintiff has supplied goods as mentioned in the purchase order from 21/08/1996 to 06/11/1996 for an amount totaling Rs. 94,871.50. The articles as mentioned in the purchase order amounting to Rs. 94,871.50 was supplied to respondent/defendant No. 2 at the place mentioned in the purchase order i.e. Rourkela with respondent No. 1, but even after lapse of the time as agreed and sending several letters demanding amount of goods, the payment of the same has not been made. For the said reason, the appellant/plaintiff filed a suit valuing it at Rs. 1,25,879.00, which includes cost of goods, interest and other charges, before the Court at Rajnandgaon, District Rajnandgaon, Madhya Pradesh (now Chhattisgarh).

5. Respondent No. 2 after receiving notice of suit, appeared before the Court at Rajnandgaon and submitted written statement to the claim made by the appellant/plaintiff in the suit and raised an objection with respect to territorial jurisdiction of the Court at Rajnandgaon and also raised objection with regard to maintainability of the suit.

6. It has been pleaded that as per purchase order, the goods are to be supplied at Rourkela and payments are to be made at Bhilai. It has been further pleaded that as per condition of purchase order, the dispute, if any, arose with respect to the said purchase order is to be decided by the Court at Durg itself. It has been also pleaded that as the appellant/plaintiff is a company registered under the Companies Act, therefore, the suit as filed in its form and place of presentation is not maintainable.

7. Respondent/defendant No. 2 after making preliminary objections has submitted its reply on merits and denied all the adverse pleadings made in the plaint against it.

8. Respondent/defendant No. 2 also filed a counter claim valued at Rs. 1,20,000.00 on the ground that supply was not made within the stipulated period and further that goods supplied were below the standard specification.

9. Initially, the learned trial Court, on the objection raised by defendant, has framed a preliminary issue with respect to the jurisdiction of the Court to try the suit filed by plaintiff. During the course of hearing of the preliminary issue with respect to jurisdiction, the learned trial Court revealed that the suit was not filed by competent person as per law and thereafter gave an opportunity to the respective parties to make necessary amendment in their pleadings, to file documents to show that the suit has been properly constituted and filed. After affording proper opportunity to the parties when the Court found that still no


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