High Court Of Delhi
ANAND SILK STORE - Appellant
Versus
RAM SILK MFG.COMPANY - Respondent
Suit 146 of 1975
Decided On : 04/21/1975
INJUNCTION - RESTRAINING MONEY SUITS - JURISDICTION - CHOICE OF FORUM - VEXATIOUS SUIT - CONTRACTUAL OBLIGATION - BALANCE OF CONVENIENCE - SECTION 151, 0. 22 READ WITH ORDER 39, RULES 1 AND 2, CODE OF CIVIL PROCEDURE - SUIT FOR RENDITION OF ACCOUNTS - APPLICATION FOR AD INTERIM INJUNCTION TO RESTRAIN DEFENDANT FROM PROCEEDING WITH MONEY SUITS FILED AGAINST PLAINTIFF - COURT HELD THAT THE PREVIOUS SUITS FILED BY THE DEFENDANT ARE NOT VEXATIOUS AND THAT THE MERE FACT THAT CHINSURA COURT IS SITUATE AT A LONG DISTANCE FROM DELHI OR THAT MOST OF THE WITNESSES ARE FROM DELHI, PUNJAB, HARYANA, JAMMU AND KASHMIR AND HIMACHAL PRADESH WOULD NOT BY ITSELF BE SUFFICIENT TO HOLD THAT THE PREVIOUS SUITS FILED BY THE DEFENDANT ARE VEXATIOUS WHEN THE PREVIOUS SUITS HAVE BEEN INSTITUTED IN A COMPETENT COURT.
Fact of the Case:
PLAINTIFF, A SOLE SELLING AGENT FOR THE DEFENDANT, FILED A SUIT FOR RENDITION OF ACCOUNTS AND ALSO FILED AN APPLICATION FOR AD INTERIM INJUNCTION TO RESTRAIN THE DEFENDANT FROM PROCEEDING WITH MONEY SUITS FILED AGAINST THE PLAINTIFF IN A COURT AT CHINSURA, WEST BENGAL. THE PLAINTIFF ARGUED THAT THE DEFENDANT HAD CHOSEN THE COURT AT CHINSURA WITH MALA FIDE INTENTION TO HARASS THE PLAINTIFF AND THAT THE BALANCE OF CONVENIENCE WAS IN FAVOUR OF THE PLAINTIFF AS THE WITNESSES AND EVIDENCE WERE EASILY AVAILABLE IN DELHI.
Finding of the Court:
THE COURT HELD THAT THE MERE FACT THAT CHINSURA COURT IS SITUATE AT A LONG DISTANCE FROM DELHI OR THAT MOST OF THE WITNESSES ARE FROM DELHI, PUNJAB, HARYANA, JAMMU AND KASHMIR AND HIMACHAL PRADESH WOULD NOT BY ITSELF BE SUFFICIENT TO HOLD THAT THE PREVIOUS SUITS FILED BY THE DEFENDANT ARE VEXATIOUS WHEN THE PREVIOUS SUITS HAVE BEEN INSTITUTED IN A COMPETENT COURT. THE COURT ALSO HELD THAT THE PLAINTIFF COULD URGE THE ARGUMENT THAT THE CHINSURA COURT LACKED JURISDICTION BEFORE THE CHINSURA COURT ITSELF.
Issues: 1. WHETHER THE DEFENDANT HAD CHOSEN THE COURT AT CHINSURA WITH MALA FIDE INTENTION TO HARASS THE PLAINTIFF? 2. WHETHER THE BALANCE OF CONVENIENCE WAS IN FAVOUR OF THE PLAINTIFF?
Ratio Decidendi: THE COURT RELIED ON THE FOLLOWING PRINCIPLES: 1. THE QUESTION OF ISSUING AN ORDER TO A PARTY RESTRAINING HIM FROM PROCEEDING WITH ANOTHER SUIT IN A REGULARLY CONSTITUTED COURT OF LAW DESERVES GREAT CARE AND CONSIDERATION AND THAT SUCH AN ORDER IS NOT TO BE MADE UNLESS ABSOLUTELY NECESSARY FOR THE ENDS OF JUSTICE. 2. IT IS OPEN TO A PLAINTIFF TO CHOOSE THE FORUM IN WHICH TO FILE HIS SUIT. 3. A PREVIOUSLY INSTITUTED SUIT CAN BE STAYED IF IT IS A VEXATIOUS SUIT OR HAS BEEN INSTITUTED IN VIOLATION OF THE TERMS OF THE CONTRACT.
Final Decision: THE COURT DISMISSED THE PLAINTIFF'S APPLICATION FOR AD INTERIM INJUNCTION, LEAVING THE PARTIES TO BEAR THEIR RESPECTIVE COSTS.
( 1 ) THIS is plaintiff s application under Sections 151 and 0. 22 read with Order 39, Rules 1 and 2, Code of Civil Procedure praying that ad interim injunction be issued restraining detendant No. 1 (herein called the defendant ) from proceeding with its money suits filed against the plaintiff and others which suits are stated to be pending in the Court of Shri D. Paul, Second Subordinate Judge, Chinsura, District Hooghly (West Bengal ). In the alternative, the plaintiff prays that the trial of the said suits be stayed till the disposal of the present suit filed by it against defendant for rendition of accounts.
( 2 ). The plaintiff filed the present suit on the allegation that it was appointed to be the sole selling agent by the defendant with effect from 13th April, 1962, to promote the sales of their products in the States of Delhi, Haryana, Punjab, Jammu and Kasir and Himachal Pradesh on terms and conditions stipulated in sub-paras (1) to (12) of para 3 of the plaint; that the plaintiff is alleged to have made huge sales to the various parties on behalf of the defendant for which services huge commision, brokerage/special promotion commission and sales incentive as also bonus etc. became due to it from the defendant ; and on the transactions carried out by the plaintiff a large sum of several lacs of rupees would be found due to it from the defendants; and that the defendant always delayed the settlement of the accounts and ultimately with the object of harassing the plaintiff had filed false and frivolous suits, enumerated in 5 of the application, against the plaintiff in the Court of Second Subordinate Judge, Chinsura (West Bengal) in respect of some transactions put through by the plaintiff as Delhi.
( 3 ). The plaintiff contends that the defendant had brought the above suits in the Court at Chinsura despite the fact that their head office and registered office is situated at 14-Netaji Subash Road, Calcutta and that Chinsura is about 40 miles away from Calcutta City. The defendant is alleged to have chosen the Court at Chinsura with mala fide intention in order to harass the plaintiff to deter it from claiming its legitimate dues because the plaintiff will have to face a lot of difficulty in reaching the Court at Chinsura. The plaintiff avers that the stay of suits in the Court at Chinsura is necessary because the balance of convenience is in favour of the plaintiff inasmuch as the witnesses and the evidence pertaining to the disputes between the plaintiff and the defendant are easily available in Delhi.
( 4 ). The case of the defendant is that Hasting Mill Ltd. with its registered office at No. 14, Netaji Subash Road, Calcutta, carries on various kinds of business in jute, textiles etc. in the State of West Bengal. The textile business of the company consisting of the manufacture and sale of synthetic and art silk fabrics is carried on under the name and stayle of Shree Ram Silk Mfg. Co. at Konnagar. District Hooghly (West Bengal ). At all material times the sales office of the said business as well as its factory were located at its Mill premises in Konnagar. The defendant opposed the application contending that between 1967 and 1971 it sold and delivered diverse quantities of synthetic and art silk fabrics of various concerns pursuant to the orders procured by the plaintiff at Delhi which were forwarded to and accepted by the defendant at its office at Konnagar. The goods thereafter were despatched by rail or road direct to the purchaser under advice to the plaintiff. As a result of such transactions a total sum exceeding Rs. 30 lacs became due and payable to the defendant; that the plaintiff as del credere agent was independently liable to pay to the defendant the said several sums due from the various buyers if the buyers failed to pay the purchase price. The buyers having failed to pay the price of the goods sold to them suits were filed against the concerns for recovery of the balance price of go
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.