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2014 Supreme(Mad) 827

High Court of Judicature at Madras
M. JAICHANDREN & M. VENUGOPAL, JJ.
M/s. @ Road Inc.,
Versus
M/s. e-Logistics Private Ltd.,
O.S.A. No. 12 of 2014
Decided on : 10-04-2014

Advocates appeared:
For the Appellant:G. Kalyan Jhabakh for M/s. Surana & Surana, Advocates.
For the Respondents:V. Srikanth, Advocate.

The central legal point established in the judgment is the significance of 'Leave to Sue' as a condition precedent to the court's jurisdiction, requiring factual examination and evidence presentation to determine the location of the cause of action and the applicability of jurisdiction.

Headnote:

Leave to Sue - Jurisdiction - Clause 12 of the Letters Patent - Devidatt Ramniranjandas V. Shriram Narayandas, AIR 1932 Bombay 291, Laxman Prasad V. Prodigy Electronics Limited and Another, (2008) 1 Supreme Court Cases 618, Wipro Limited V. Oushadha Chandrika Ayurvedic India (P) Limited, Patel Roadways Limited, Bombay V. Prasad Trading Company, (1991) 4 Supreme Court Cases 270, USV Limited, D Block, T.Nagar, Chennai 600 017 and another V. Systopic Laboratories Limited, Chennimalai Yarns Pvt. Limited V. S.Chandrasekar and others, Kintali China Jaganadham and others V. K.Laxmi Naidu and others, Mahomedbhai Husenbhai and others V. Admji Halimbhai and others, M.Ponnuswamy V. V.K.T. Periasami Pillai and another, Nayayan V. Secretary of State, (1906) ILR 30 Bombay 570, Dwarakadas V. Hanuman Das, AIR 1961 Rajesthan 187, Dalsukh Nathmal V. Motilal, AIR 1938 Nagpur 262, Swaminathan V. Soma Sundaram, AIR 1931 Madras 731

Fact of the Case:

The Appellant challenges the rejection of their application by the Learned Single Judge, arguing that the cause of action did not arise within the jurisdiction of the court and that leave to sue should have been obtained by the Respondent. The Respondent claims that the cause of action arose in Chennai and that the Appellant's subsidiary's office in Chennai became the office of the Appellant.

Finding of the Court:

The court sets aside the order of the Learned Single Judge and remits the application for fresh consideration, directing the parties to present oral and documentary evidence. The court refrains from expressing any opinion on the merits of the matter and leaves the parties to bear their own costs.

Issues: The main issues revolve around the jurisdiction of the court, the requirement of obtaining leave to sue, and the location of the cause of action.

Ratio Decidendi: The court emphasizes the importance of 'Leave to Sue' as a condition precedent to the court's jurisdiction and cites various legal provisions and precedents to support its decision. It highlights the need for factual examination and evidence presentation to determine the location of the cause of action and the applicability of jurisdiction.

Final Decision: The Original Side Appeal is disposed of, setting aside the order of the Learned Single Judge and remitting the application for fresh consideration. The parties are directed to present oral and documentary evidence, and the court refrains from expressing any opinion on the merits of the matter.

Judgment :

M. Venugopal, J.

1. The Appellant/Applicant/ 1st Defendant has projected the present Original Side Appeal as against the order, dated 07.03.2013, in Application No.1958 of 2011, in C.S.No.120 of 2011, passed by the Learned Single Judge, in rejecting the Application.

2. The Learned Single Judge, while passing the impugned order, in Application No.1958 of 2011, in C.S.No.120 of 2011 (filed by the Appellant/1st Defendant), on 07.03.2013, has, inter alia, observed that 'the cause of action, for filing of the suit viz., is the Agreement dated 08.09.2007, which relates to the business activity in India, hence, this Court has no hesitation to come to the conclusion that no leave is required to maintain the suit, more so when the address of the 1st Defendant is clearly mentioned in their own documents as situate at Taramani, Chennai only because the address shown in the agreement is the Head Quarters at United States of America, that by itself will not entitle the Applicant/1st Defendant to raise the plea that leave has to be taken and the said plea is factually incorrect and has no basis.'

3. According to the Learned Counsel for the Appellant/1st Defendant, the order of the Learned Single Judge, dated 07.03.2013, in Application No.1958 of 2011, in C.S.No.120 of 2011, in rejecting the Application, is contrary to law, weight of evidence and probabilities of the case.

4. The Learned Counsel for the Appellant/1st Defendant urges before this Court that the Learned Single Judge, while rejecting the Application, has rendered a finding beyond the suit pleadings itself. Further, it is the stand of the Appellant/1st Defendant that nowhere in the Plaint, the Respondent/Plaintiff has pleaded that the entire cause of action had arisen within the jurisdiction of this Court and/or that the Appellant/1st Defendant has its place of business at Chennai.

5. Advancing his arguments, the Learned Counsel for the Appellant/1st Defendant contends that the Learned Single Judge failed to appreciate that the Respondent/Plaintiff itself claimed M/s.@ Road Inc., a Trimble Company, being c/o At Road Software India (P) Limited and in fact, the Company referred to in the documents/brochure of the Appellant/1st Defendant is only that of its Subsidiary, and the same being a separate legal entity. In effect, the plea of the Appellant/1st Defendant is that, by no stretch of imagination, it could be said that the Appellant/1st Defendant has its place of business at Chennai within the jurisdiction of this Court.

6. However, the Learned Counsel for the Appellant/1st Defendant submits that 2nd and 3rd Defendants are separate entities in the eye of law and in fact, the Appellant/1st Defendant has the subsidiary companies in India.

7. The primordial submission of the Learned Counsel for the Appellant/1st Defendant is that since the Appellant/1st Defendant is a company incorporated in U.S.A. [outside the jurisdiction of this Court] in terms of ingredients of Clause 12 of the Letters Patent, leave ought to have been obtained by the Respondent/Plaintiff to entertain the Suit filed by it. In the instant case, since the Leave was not obtained for filing of the Suit by the Respondent/Plaintiff as a condition precedent, the Appellant/1st Defendant, as Applicant, filed Application No.1958 of 2011, to dismiss the Suit.

8. Lastly, the Learned Counsel for the Appellant/1st Defendant submits that the Learned Single Judge failed to take into account of a very vital fact that the Annual Report was of the Trimble Group, which invariably would also refer to its wholly-owned Subsidiary which is a separate legal entity. Also that, the Subsidiary's place of business could not be termed as 'the place of business of the Appellant/1st Defendant'.

9. The Learned Counsel for the Appellant/1st Defendant cites the decision in Devidatt Ramniranjandas V. Shriram Narayandas, AIR 1932 Bombay 291, wherein it is held that 'Under Clause 12 of the Letters Patent, the obtaining of leave to sue,














































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