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1962 Supreme(Raj) 61

Rajasthan High Court
Jagat Narayan, J.
Firm Bilasrai Mannalal - Appellant
Versus
Firm Purshottan Das Sanwal Das - Respondents
S.B. Civil Revision No.362 of 1959
Decided On : February 26, 1962

Advocates Appeared:
Hastimal, for Petitioner; V.P. Tyagi and Sagarmal, for Respondent

Headnote:Civil P.C., Sec. 20(c)-— Part of cause of action arises — Railway receipt relevant to goods sent through bank with instructions, to handover R/R on discharging hundis.

       

JAGAT NARAYAN, J. —This is a plaintiffs revision application against an appellate order of the District Judge, Bikaner, confirming an order of the Civil Judge, Ratangarh, holding that he did not have jurisdiction to try the suit.

2. The plaintiff is a firm carrying on business at Ratangarh. The defendant is also a firm carrying on business at Kota. Banshi Dhar a partner of the plaintiff firm went to Kota on 17.7.53 and placed an order for the supply of 11 bags of Dhania, 32 bags of Mungphali, 40 bags of rice and 200 bags of Jowar with the defendant firm. These goods, with the exception of 200 bags of Jowar, were consigned by the defendant by rail to Ratangarh. The consignment was made in the name of the defendant and the railway receipt was endorsed in favour of a bank at Ratangarh. Two Hundis were sent with the railway receipt to the bank. One was for Rs. 4,262/- which represented the price and other charges of the goods which were consigned and the other was for Rs. 3,000/-. The bank was instructed to present these Hundis to the plaintiff at Ratangarh and in case they were honoured it was to endorse the railway receipt in favour of the plaintiff and to deliver it. The Hundis were duly honoured by the plaintiff and the railway receipt was delivered. The objection of the plaintiff with regard to the price charged by the defendant was with regard to a sum of Rs. 1/1/- only. The defendant accepted the objection and credited the plaintiff with this sum. One hundred fifty bags of Jowar were purchased by the defendant in the presence of Banshi Dhar, but they were not despatched. Fifty bags of Jowar were also purchased by the defendant after Banshi Dhar had left. These bags of Jowar were however not sent to Ratangarh for several days. In the meantime the price of Jowar fell. The plaintiff sent instructions to the defendant to sell the Jowar. He instituted the present suit in the court of the Civil Judge Ratangarh for the recovery of the balance due to him out of the sum of Rs. 3,001/1/0 lying to his credit with the defendant after allowing for losses incurred in the sale of Jowar which had been purchased by the defendant on his instructions. The suit was contested by the defendant inter alia on the ground that the court at Ratangarh had no jurisdiction to try it. The question of jurisdiction was tried as a preliminary issue by the learned Civil Judge, It was decided in favour of the defendant on the ground that the relationship between the parties was that of principal and agent, that the goods were ordered by the plaintiff to be purchased by the defendant at Kota, that the amount was to be paid at Kota and that no part of the cause of action arose at Ratangarh. It was alleged by the plaintiff in the plaint that the goods and the railway receipt were to be delivered at Ratangarh that payment was to be made there and that the railway receipt was actually delivered at Ratangarh and the payment was actually made there and so the court at Ratangarh had jurisdiction to try the suit. The evidence of the parties was recorded by the learned Civil Judge. He found that it had not been proved that a contract was entered into between the parties that the goods would be delivered at Ratangarh or that payment would be made there. On these findings he decided the issue against the plaintiff. The learned District Judge on appeal followed the unreported decision of a learned single Judge of this Court in S.B. Civil Revision No. 91/56 (Firm Purshottam Dass vs. Chandmal Ruglal) decided on 14.11.58. He was of the opinion that the facts and circumstances of that case were similar to those of the present case. In that case also the defendant was firm Purshottam Dass Sanwal Dass which is the defendant in the present case. The learned single Judge followed his own unreported earlier decision in S.B. Civil Revision No. 155/54 (Deoraj vs. Kishna) decided on 31.10.58 and some other decisions in which it was held that a suit by a principal against a commission































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