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2002 Supreme(Raj) 1084

High Court Of Rajasthan
Judgename : B.S.CHAUHAN
MOHNA RAMAKRISHANAN - Appellant
Versus
YOGAM BALA DEV RAJ - Respondent
C. R. P. 138 Of 1994
Decided On : 09/27/2002

Advocates Appeared:
A.L.Chopra, R.K.Thanvi

The endorsement on a promissory note must create a valid cause of action to confer territorial jurisdiction on a Court, and any mala fide exercise to defeat statutory provisions should be avoided.

Headnote:

Territorial Jurisdiction - Civil Court - Code of Civil Procedure, 1908, Section 20 - Summary

Fact of the Case:

The plaintiff filed a suit for recovery of a loan amount against the defendant. The defendant contested the territorial jurisdiction of the Civil Court at Jodhpur, claiming that the transaction took place at Ootacamund and the Court of Jodhpur had no jurisdiction.

Finding of the Court:

The Court analyzed the legal provisions and precedents related to territorial jurisdiction, considering the facts and circumstances of the case. It found that the endorsement on the promissory note, which was the basis for the Court's jurisdiction, was not a bona fide exercise and was made to defeat statutory provisions.

Issues: The main issue was whether the Civil Court at Jodhpur had territorial jurisdiction over the matter, based on the endorsement made on the promissory note.

Ratio Decidendi: The Court held that the endorsement on the promissory note did not create a cause of action for the suit and was not a valid basis for conferring jurisdiction on the Civil Court at Jodhpur.

Final Decision: The revision was allowed, and the impugned order regarding the jurisdiction of the Court was reversed. The Civil Court at Jodhpur was held to have no territorial jurisdiction to try the suit, and the plaint was directed to be returned to the plaintiffs for presentation before the competent Court.

Judgment

( 1 ) THISREVISION petition has been filed against the impugned order dated 23-11 - 993, by which the learned trial Court has decided the issue of territorial jurisdiction as a preliminary issue and held that the Civil Court at Jodhpur has territorial jurisdiction over the matter.

( 2 ) THE facts and circumstances giving rise to this case are that the plaintiff/nonpetitioners filed a suit for recovery of Rs. 60,200/- against the defendant/petitioners alleging that on 2-6-1982, the defendantpetitioners had borrowed a sum of Rs. 25,000/ from the plaintiff/non-petitioner no. 1 at Ootacamund {tamil Nadu) to purchase a plot and in this connection, a promissory note was executed by the defendantpetitioners in favour of plaintiff/non-petitioner No. 1 at Ootacamund. Thereafter, for the same loan, an another promissory note was executd by the defendant-petitioners on 1-6-1983. Defendant-petitioners did not pay the amount of loan, therefore, they executed a third promissory note on 1-6-1988 for a sum of Rs. 40,000/- inclusive of the amount of interest at Ootacamund in favour of plaintiff/non-petitioner No. 1, who gave right to recover the interest on the said amount of promissory note to plaintiff/non-petitioner no. 2 and in this respect, necessary endorsement had been made on the reverse side of the promissory note at Jodhpur. Defendantpetitioners filed the written statement admitting the execution of first two promissory notes but denied the execution of third promissory note for a sum of Rs. 40,000/-and submitting that whatever amount was due, had already been repaid. An objection in respect of the territorial Jurisdiction of civil Court at Jodhpur was raised on the ground that the transaction took place at ooctacamund and the Court of Jodhpur had no jurisdiction. In view of the pleadings, issues were framed and issue No. 3-A was framed as to whether the Civil Court at jodhpur had territorial jurisdiction over the matter and the said issue has been decided as a preliminary issue against the defendant/petitioners on the ground that the endorsement made on the reverse side of the promissory note amounted to assignment and as it was made at Jodhpur, the Civil court at Jodhpur had the Jurisdiction to try thesuit. Henca this revision.

( 3 ) MR. R. K. Thanvi, learned counsel for the petitioners, has submitted that the entry on the back of the promissory note is fictitious and has been made with an oblique motive; it was not so endorsed with thej consent of the defendant-petitioners nor with their knowledge, nor any notice had ever been issued to them informing about the said endorsement. Moreso, what was authorised to plaintiff/non-petitioner No. 2 was to recover the amount of interest only and not the principal amount or the outstanding dues and such an action would not form a cause of action even partly and, therefore, the Civil Court at Jodhpur had no territorial jurisdiction. The finding on the said issue is liable to be reversed by this Court.

( 4 ) ON the other hand, Mr. A. L. Chopra, learned counsel for plaintiff/non-petitioners, has submitted that as the endorsement which constitutes "cause of action" was made at Jodhpur, the Civil Court at Jodhpur has the jurisdiction and the impugned order passed by the learned trial Court does not require any interference whatsoever in a limited regional jurisdiction.

( 5 ) I have considered the rival submissions and perused the record of the case.

( 6 ) THERE can be no dispute regarding the settled legal proposition that conferment of jurisdiction is a legislative function and it can neither be conferred with the consent of the parties nor by a superior Court and if the Court passes a decree having no jurisdiction over the matter, it would amount to nullity as the matter goes to the route of the jurisdiction. Such an issue can be raised even at a belated stage in execution. The finding of a Court or Tribunal becomes irrelevant and uneforceable/inexecutable once the forum is found t





































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