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1992 Supreme(Ker) 236

Kerala High Court
K.G.BALAKRISHNAN
Femina Handloom of India, Can­nanore - Appellant
Versus
M.R.Verma - Respondent
Decided On : 08/19/1992

Advocates:
M/s. P. V. Narayanan Nambiar, M. P. Ashok Kumar and P. A. Bhaskaran, for Petitioner; By Party, for Respondent.

The plaintiff was entitled to maintain the suit in the court at the place where the goods were dispatched to the purchaser, as per Section 20 of the C.P.C.

Headnote:

Jurisdiction - Territorial Jurisdiction - Section 20 of the C.P.C.

Fact of the Case:

The plaintiff filed a suit for the realization of the amount due from the defendant for the sale of cotton handloom fabric. The defendant disputed the liability to pay and contended that the agreement was executed at Bombay, and no part of the cause of action arose within the jurisdiction of the Court in Thalasserry.

Finding of the Court:

The trial Court held that the cause of action for the suit arose at Bombay and the courts at Kannur had no territorial jurisdiction. The plaintiff appealed against this finding.

Issues: The main issue was whether the court had territorial jurisdiction to entertain the suit.

Ratio Decidendi: The court should have tried the issue of territorial jurisdiction as a preliminary issue. The plaintiff was entitled to maintain the suit in the court at the place where the goods were dispatched to the purchaser, as per Section 20 of the C.P.C.

Final Decision: The finding that the court had no jurisdiction to try the case was not sustainable. The suit was decreed for the plaintiff with interest and proportionate costs throughout.

JUDGEMENT:-

Plaintiff in O.S. 116 of 1986 on the file of the Sub Court, Tellicherry is the appellant. The appeal is directed against the return of the plaint on the ground that the court below had no territorial jurisdiction to entertain the suit.

2. The suit is for realisation of the amount due from the defendant being the price of 2000 meters of cotton handloom "oxford fabric" variety sold by the plaintiff to the defendant. In the plaint the plaintiff alleged that the defendant offered to purchase cotton handloom fabric at the rate of Rs. 13/- per meter and this offer was accepted by the plaintiff. The plaintiff later informed the defendant that she would be dispatching the goods through Sharma bus, a common carrier. The goods were delivered through the common carrier and it reached the defen­dant's warehouse on 23-10-84. Plaintiff later sent invoice demanding Rupees 27,275.30 being the value of the goods dispatched. Defendant postponed the payment under some pretext or other and ultimately the plaintiff filed the suit.

3. In the plaint the plaintiff alleged that the goods were delivered to Sharma bus from Kannur. So part of the cause of action arose at Kannur and therefore the suit was main­tainable in the court below. The defendant filed written statement wherein they disputed the liability to pay the amount. The defendant contended that they had not accepted the proposal made by the plaintiff and that they never instructed the plaintiff to send the goods through Sharma bus. The defendant contended that there was delay in dispatch of goods and hence the article was rejected. In paragraph 3 of the written statement the defendant contended that the agreement was executed at Bombay and no part of cause of action arose within the jurisdiction of the Court in Thalasserry and therefore the trial Court had no jurisdiction.

4. In the trial Court seven issues were framed and by judgement dated 30-1-89 the Court held that the plaintiff was entitled to recover Rs. 27,275.30 being the value of the goods supplied by him. But under issue No. 2 the court held that the cause of action for the suit arose at Bombay and the courts at Kannur have no territorial jurisdiction. On that premises the plaint was ordered to be returned to the plaintiff for presentation before proper court. This finding is chal­lenged by the plaintiff.

5. At the outset I may observe that the court should have tried issue No. 2 as a preliminary issue. When the defendant con­tended that the Court has no territorial jurisdiction to try the case and an issue is framed regarding jurisdiction, for the con­venience of the parties the same should have been tried as a preliminary issue and if the court finds that it has no jurisdiction, the plaintiff can very well proceed this litigation in the proper court. The finding regarding jurisdiction at the final stage would only cause undue hardship to parties. The provision contained in Order XIV, Rule 2(2) of the C.P.C. also is relevant, where it is stated:

"Where issues both of law and of fact arise in the same suit, and the Court is of opinion that the case or any part thereof may be disposed of on an issue of law only, it may try that issue first if that issue relates to ­-

(a) the jurisdiction of the Court, or

(b) xx xx xx."

In this case the court should have decided the question of jurisdiction on the basis of the relevant provisions, which I shall deal with presently.

6. In the plaint there is a specific alle­gation to the effect that the defendant placed orders for purchase of goods from the plaintiff and the goods were delivered from Kannur to Bombay through Sharma bus. This aspect of the case was not specifically denied in the written statement. The defen­dant only contended that the contract was concluded at Bombay and therefore the courts in Kannur had no jurisdiction. The fact that the defendant purchased the goods from the plaintiff and that the goods were delivered from Kannur through a common carrier is not denied and the e





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