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2010 Supreme(Gau) 846

GAUHATI HIGH COURT
I.A.Ansari, J.
Goodricke Group Ltd.and Anr. -Appellant
Versus
Mahmud Hasan Sultan and Anr. -Resopndent
Civil Revision Petition No.283 of 2008
Decided On : 12-11-2010

Advocates Appeared:
Mr.K.Goswami and Md.R.Bezbaruah for the petitioners., Mr.M.Z.Ahmed, Smt.B.Dutta and Mr.A.M.Dutta for the respondents.

Headnote:

Companies Act, 1956 - Civil Procedure Code, 1908 - Section 19 - Order VII - Rule 10 - Post of Senior Manager - Consideration - Jurisdiction - Opposite-party herein instituted Money Suit in court of Civil Judge Senior Division seeking inter alia a declaration that plaintiff is entitled to receive from defendants a sum with interest accruing thereon principal defendants in suit being a company which is registered under Companies Act, 1956 with its registered office at Kolkata and having a branch office - In terms of declaration so sought for plaintiff also sought for a decree for recovery of said amount suit of plaintiff being in substance that he had worked for defendant company for over years his postings being at different places in Assam and his last posting being at Tea Garden West Bengal and that defendants having utilized his services had not paid his dues and he was therefore entitled to receive his dues and also to be compensated for loss which had incurred as a result of non-payment of his dues - Held, Having realized that suit in light of pleadings in plaint could not have been instituted at senior counsel submits that plaintiff would apply to court below seeking leave to withdraw suit with liberty to institute suit in a court of competent jurisdiction or seeking leave for amendment of suit - While considering above submissions made on behalf of plaintiff-opposite party suffice it to point out in this regard that it is really for plaintiff-opposite party to decide his course of action inasmuch as this court while in session of this revision is merely required to decide as to whether in facts and attending circumstances of present case and law relevant thereto impugned order could have been passed and is sustainable - For reasons already assigned above this court is of firm view that defendants prayer to return plaint for its presentation in court of competent jurisdiction ought to have been allowed - In result and for reasons discussed above this revision succeeds - Impugned order is hereby set aside and court below is directed to pass appropriate order in terms of order VII rule 10 as regards return of plaint - Before parting with this revision it is however made clear that if plaintiff-opposite party makes any application in suit seeking withdrawal of suit with liberty to institute a fresh suit or seeking amendment of plaint it would remain for court below to decide and dispose of same in accordance with law - Petition disposed of

1. The moot question, raised in this revision, is whether a suit can be instituted against a corporation in a court, within whose local jurisdiction a subordinate or branch office of the corporation is located irrespective of the fact as to whether the 'cause of action' part thereof, had or had not arisen within the limits of the territorial jurisdiction of the court?

2. The question, posed above, has arisen in the backdrop of the facts as may be briefly put as under:

3. The opposite-party herein instituted Money Suit No.72/2005 in the court of the Civil Judge, Senior Division No.2, Kamrup, Guwahati, seeking, inter alia, a declaration that the plaintiff is entitled to receive from the defendants a sum of Rs. 21,37,000 with interest accruing thereon, the principal defendants, in the suit, being a company, which is registered under the Companies Act, 1956, with its registered office, at Kolkata, and having a branch office at Guwahati. In terms of the declaration, so sought for, the plaintiff also sought for a decree for recovery of the said amount, the suit of the plaintiff being, in substance, that he had worked for the defendant company for over 33 years, his postings being at different places in Assam and his last posting being at Gandrapara Tea Garden, West Bengal, and that the defendants, having utilized his services, had not paid his dues and he was, therefore, entitled to receive his dues and also to be compensated for the loss, which had incurred as a result of non-payment of his dues.

5. The defendants-petitioners appeared in the suit and filed a petition, under order VII, rule 10 of the Code of Civil Procedure, 1908 ('the CPC'), seeking a direction to be passed returning the plaint of the plaintiff for the purpose of institution of the suit in a court, which had jurisdiction to try the suit, the petition having been filed on the ground that the pleadings, as contained in the plaint, had not disclosed that the learned trial court had territorial jurisdiction to try the suit. In short, it was on the ground of lack of territorial jurisdiction of the court, at Guwahati, that the said application was filed by the defendants seeking return of the plaint.

6. By order, dated 5.8.2008, as the learned Civil Judge (Senior Division) No.2, Kamrup, has rejected the defendants' prayer to return the plaint, the defendants-petitioners, feeling aggrieved, are, now, before this court with the present revision.

7. I have heard Mr. K. Goswami, learned counsel for the defendants-petitioners, and Mr. M. Z. Ahmed, learned senior counsel, appearing on behalf of the plaintiff-opposite party.

8. While considering the present revision, it may be pointed out, at the very outset, that it is not in dispute that the defendant No.1 is a company, registered under the Companies Act, with its registered office at Kolkata. However, while the plaintiff-opposite party asserts that the defendant No.1 has a branch office at Guwahati, the defendants-petitioners have disputed this assertion. Such a disputed question of fact does not fall within the province of the present revision.

9. This court, therefore, while deciding this revision, has to go by the assumption that a branch office of the defendant No.1 does exist at Guwahati. In fact, at the stage of consideration of the return of the plaint under order 7, rule 10, what is to be looked into is the plaint and the averments made therein. It is necessary to read the plaint in a meaningful manner to find out the real intention behind the suit. The nature of the suit and its purpose have to be determined by reading the plaint as a whole. The inclusion or absence of a prayer is not decisive of the true nature of the suit, nor is the order in which the prayers are arrayed in the plaint. The substance or object of the suit has to be gathered from the averments made in the plaint and on which the reliefs are asked and the prayers are based. It must be borne in mind that the function of a pleading is only to state material































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