IN THE HIGH COURT OF DELHI AT NEW DELHI
V. KAMESWAR RAO, J.
Dr. Mukesh Aghi - Plaintiff
Versus
Steria Ltd. & Ors. - Defendant
CS(OS) 181/2014 & IAs 9780/2014, 16810/2015
Decided On : 08-03-2016
Territorial Jurisdiction - Jurisdiction Clause - Section 151 CPC, Order 7 Rule 10 CPC, Order 8 Rule 10 CPC - Indian Contract Act, 1872 - Code of Civil Procedure, 1908 - [IA 9780/2014] - The court discussed the jurisdiction of the court in relation to the territorial jurisdiction to entertain the suit, focusing on the jurisdiction clause in the contract letter and its implications. The court referred to various judgments to interpret the validity of the jurisdiction clause and concluded that the exclusive jurisdiction of the Courts at Noida was conferred by the parties, thus the court had no territorial jurisdiction to entertain the suit.
Fact of the Case:
The defendant filed an application seeking to return the plaint to the plaintiff on the ground that the court had no territorial jurisdiction to entertain the suit due to the jurisdiction clause in the contract letter.
Finding of the Court:
The court found that the jurisdiction clause in the contract letter conferred exclusive jurisdiction on the Courts at Noida, and as a result, the court had no territorial jurisdiction to entertain the suit.
Issues: The main issue was whether the court had territorial jurisdiction to entertain the suit in light of the jurisdiction clause in the contract letter.
Ratio Decidendi: The court's decision was based on the interpretation of the jurisdiction clause in the contract letter and its implications, as well as the application of relevant legal provisions and precedents.
Final Decision: The court allowed the application and directed the Registry to return the plaint to the plaintiff to enable presentation before the competent Court at Noida, Gautam Budh Nagar District, Uttar Pradesh.
V. Kameswar Rao, J.
IA 9780/2014 (filed by the applicant-defendant No. 3)
1. By this order, I would decide the application i.e. IA No. 9780/2014 filed by the applicant-defendant No. 3 under Order 7 Rule 10 CPC read with Order 8 Rule 10 read with Section 151 CPC, with a prayer to return the plaint to the plaintiff on the ground that this Court has no territorial jurisdiction to entertain the suit.
2. Some of the relevant facts are, the suit has been filed by the plaintiff impleading the defendant Nos. 1 to 6 with a prayer against defendant Nos. 1 to 5, to award equity shares in defendant No. 5 company to the plaintiff or value equivalent to the appropriate value of equity shares having a face value of Rs. 52,20,000/- per year from 2009 till 2012 on the dates of vesting set out in para 11 of the plaint. In the alternative, he sought a prayer of recovery of Rs. 1,91,40,000/- with interest.
3. Suffice to state, the non-applicant/plaintiff was appointed as Managing Director and Chief Executive Officer (CEO), Asia-Pacific and Global Executive Sales Director of the applicant/defendant No. 3 from 2007 till August 31, 2012 when he resigned from his position as CEO.
4. The case of the applicant/defendant No. 3 in the application is that this Court has no jurisdiction, whether territorial or otherwise to entertain the suit in view of the fact, that, not only the defendant Nos. 1 to 3 and 5 are situated outside the territorial jurisdiction of the Court, no part of the cause of action has arisen within the territorial jurisdiction of this Court and the contract of employment dated April 4, 2007 contains a jurisdiction clause, which provides for exclusive jurisdiction for Courts at Noida regarding any disputes pertaining to the said agreement.
5. A reply to the application was filed by the non-applicant/plaintiff.
6. It is the contention of Mr. Sanjeev Kumar, learned counsel appearing for the applicant-defendant No. 3 that this Court, while examining an application under Order 7 Rule 10 CPC would only consider the facts as stated in the plaint. He would apart from reiterating the grounds urged in the application, would state, the registered office/head office of the applicant-defendant No. 3 is at Noida, Uttar Pradesh. He states, apart from that, the defendant No. 3 is having its office at Pune and Chennai and not in Delhi. Even the offer of employment letter along with the terms and conditions of documents/Non-Disclosure and Code of Practice Agreement was sent to the non-applicant/plaintiff at Singapore. As per the offer of employment letter, signed copy of the same along with the enclosures were to be delivered at Noida, Uttar Pradesh. It is the case of the applicant-defendant No. 3 that even the Annual General Meetings referred to by the plaintiff were held at Noida, Uttar Pradesh.
7. The non-applicant/plaintiff had initially filed an application under Section 20(b) read with Section 151 CPC seeking leave of this Court to implead defendant Nos. 1, 2, 3 and 5 having their office locations out of Delhi, being fully aware that this Court does not have territorial jurisdiction over the said defendants.
8. The defendant No. 4 is the Chief Executive Officer of the applicant-defendant No. 3 and is a resident of Delhi, who has been made a party in his official capacity and not in his personal capacity. Therefore, the residence of defendant No. 4 in Delhi would be irrelevant. The defendant No. 6 is the recruitment company that had negotiated the employment, contractual terms and offer details on behalf of the defendant No. 3-applicant.
9. Mr. Sanjeev Kumar, learned counsel for the applicant-defendant No. 3 would heavily rely upon the judgments in the cases of L.T. Foods Ltd. Vs. Heritage Foods (India) Ltd. (2014) 210 DLT 721, Saleem Bhai and Ors. Vs. State of Maharashtra and Ors. (2003) 1 SCC 557, Begum Sabiha Sultan Vs. Nawab Mohd. Mansur Ali Khan (2007) 4 SCC 343, Swastik Gases Pvt. Ltd. Vs. Indian Oil Corporation Ltd. (2013) 9 SCC 32, New Mog
ABC Laminart Pvt. Ltd. & Anr. vs. A.P. Agencies Salem (1989) 2 SCC 163
Begum Sabiha Sultan Vs. Nawab Mohd. Mansur Ali Khan (2007) 4 SCC 343
Unimers India Ltd. Vs. IFCI Ltd. & Ors. (2012) 129 DRJ 608
Dashrath Rupsingh Rathod vs. State of Maharashtra & Anr. (2014) 9 SCC 129
Inter Globe Aviation Limited vs. N. Satchidanand (2011) 7 SCC 463
Dura-Line India Pvt. Ltd. vs. M/s Broadband Network Pvt. Ltd. 2004 (111) DLT 736
Ramesh B.Desai & Ors. Vs. Bipin Vadilal Mehta & Ors. (2006) 5 SCC 638
AVN Tubes Ltd. vs. Shishir Mehta (2008) 3 SCC 272
Suresh Chand Purwar (Karta) vs. Vivek Purwar & Ors. (2014) 58 PTC 413 (Del.)
Whale Stationery Products Ltd. vs. Kores C.E. Gmbh 205 (2013) DLT 99
L.T. Foods Ltd. Vs. Heritage Foods (India) Ltd. (2014) 210 DLT 721
Saleem Bhai and Ors. Vs. State of Maharashtra and Ors. (2003) 1 SCC 557
Swastik Gases Pvt. Ltd. Vs. Indian Oil Corporation Ltd. (2013) 9 SCC 32
New Moga Transport Co. Vs. United India Insurance Co. Ltd. (2004) 4 SCC 677
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