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2023 Supreme(Del) 430

IN THE HIGH COURT OF DELHI AT NEW DELHI
TUSHAR RAO GEDELA, J.
Montessori Education Society Regd & Ors – Appellants
Versus
Ms Shaily Grover & Ors - Respondent
CM(M) 350 of 2023
Decided on : 03-03-2023

Advocate Appeared:
For the Appellant :Mr. J.P. Sengh, Sr. Advocate with Mr. V.K. Tandon, Ms. Prerna Tandon, Mr. Nishant Sharma and Mr. R.L. Sinha, Advocates
For the Respondent:Mr. Arav Kapoor and Ms. Komal Gupta, Advocates

The Court clarified the interpretation of Section 20(b) of the Code of Civil Procedure, emphasizing that the residence of one of the defendants is to be considered for territorial jurisdiction.

Headnote:

Jurisdiction - Code of Civil Procedure - Section 20(b)

Fact of the Case:

The petitioners challenged an order granting leave to institute a suit under Section 20 sub-Section (b) of the Code of Civil Procedure, 1908. The petitioners argued that the suit should have been instituted at Ashok Vihar where the cause of action had arisen, while the respondents argued that the leave of the Court was sought and the Court had territorial jurisdiction to entertain the suit.

Finding of the Court:

The Court found that the respondents had sought the leave of the Court to institute the suit under Section 20(b) of the Code of Civil Procedure and that the Court had territorial jurisdiction to entertain the suit.

Issues: The main issue was whether the Court had territorial jurisdiction to entertain the suit under Section 20(b) of the Code of Civil Procedure.

Ratio Decidendi: The Court held that the Civil Court is empowered to permit the plaintiff to institute a suit where one of the defendants resides, and the use of the word 'or' between sub-section (b) and (c) indicates that the residence of one of the defendants is to be considered and need not necessarily be dependent upon whether any cause of action to institute a suit against the said defendant would have arisen therein.

Final Decision: The challenge to the impugned order was dismissed, and the petition was dismissed without any order as to costs.

JUDGMENT :

TUSHAR RAO GEDELA, J.

[The proceeding has been conducted through Hybrid mode]

CM APP No. 9351/2023

1. This is an application seeking exemption from filing certified copies of the annexures.

2. Exemption is allowed, subject to all just exceptions.

3. Application stands disposed of.

CM(M) 350/2023 & CM APP No. 9350/2023

4. With the consent of learned counsel for the parties, the petition itself is being taken up for disposal at the admission stage itself.

5. The petitioners challenge the order dated 13.12.2022 passed in CS DJ 989/2022 titled ‘Shaily Grover and Ors vs. Montessori Education Society Regd & Ors.’ whereby the leave to institute the suit under Section 20 sub-Section (b) of Code of Civil Procedure, 1908 (in short “CPC”) was granted to the respondents/plaintiffs.

6. Mr. J.P. Sengh, learned senior counsel for the petitioners submits that the entire cause of action, even if it is taken to be on the statement contained in the plaint, reflects the fact that the whole issue relates to the elections which were conducted by the respondents/defendants at Ashok Vihar, in the office of the Society.

7. Learned senior counsel also submits that even if the allegations leveled against the defendants no.2 and 3 is taken at its face value, the fact still remains that the same will be relatable to the reliefs as sought by the respondents/plaintiffs in their suit.

8. Learned senior counsel submits that the Doctrine of Forum Conveniens is applicable to all the parties of the suit and not plaintiff alone. Learned senior counsel submits that that cause of action having arisen at Ashok Vihar, in that, the elections to various posts of the office bearers of the petitioner-society; the records are being maintained at the Ashok Vihar office of the Society; and all other relatable documents etc. are available at the Ashok Vihar office. Based on that Mr. Sengh, learned senior counsel submits that even if this Court looks at issue on the point of doctrine of Forum Conveniens, the records and the substantial cause of action having arisen at Ashok Vihar, it would have been in the interest of justice for the suit to have been instituted at Ashok Vihar where the original and the basic cause of action had arisen.

9. Learned senior counsel, while referring to sub-Section (b) of Section 20 of CPC submits that though, not so worded, yet leave to institute a particular suit in a particular Court of competent jurisdiction ought to have been obtained by the respondents/plaintiffs before the suit could be stated to have been duly instituted.

10. Learned senior counsel further submits that admittedly there is no application in that regard nor any such leave was ever obtained by the respondents/plaintiffs.

11. Learned senior counsel attacks the impugned order to submit that in a perfunctory and arbitrary manner the learned Trial Court has dealt with the objections on the question of jurisdiction and arbitrarily granted leave without giving any reasons whatsoever.

12. Learned senior counsel also relied upon the judgment of the learned Single Judge of the Bombay High Court in Second Appeal No. 23/1962 decided on 10.04.1968 titled ‘Manoramabai Moreshwar & Ors. vs. Ibrahim Khan Bismilla Khan & Ors’, whereby the learned Single judge had held that a specific leave by way of an application ought to have been filed by the plaintiff, prior to such leave being sought.

13. Learned senior counsel submits that having regard to the fact that no such application nor leave having been sought by the respondents/plaintiffs, the impugned order is violative of the ratio laid down by Bombay High Court in the aforesaid judgment.

14. Learned senior counsel also submits that though the Bombay High Court had not referred to the Doctrine of Forum Conveniens, however by inference, the observations contained in para-10 of the judgment would amount to the learned Single Judge having upheld the said doctrine.

15. Learned senior counsel finally submits that it is the indelible right of the petitione

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