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1962 Supreme(P&H) 41

I.D.DUA
Tarsema Textile Traders – Appellant
Versus
Tarlok Singh Sadhu Singh – Respondent


Judgement Key Points

Key Points from the Judgment

Core Holding on Jurisdiction Objection: - An objection relating to the place of suing cannot be allowed by a revisional court unless there has been a consequent failure of justice. (!) (!) (!) (!) [23000140200007]

Facts of the Case: - Plaintiff, sole proprietor of Messrs. Virdi Industries (manufacturing and selling shuttles), sued defendants (firm Tarsema Textile Traders and its managing partner) for recovery of Rs. 4,783.24 (balance due after debits/credits from goods supplied since 17-9-1957).[23000140200001] (!) - Goods were dispatched from Amritsar on orders received there; rates were F.O.R. Amritsar; account verified in November 1959.[23000140200001] (!) [23000140200003] - Agency agreement dated 22-1-1958 (amended 1-4-1958) for sole selling agency in Bombay area; disputes to be settled at Bombay and Amritsar; post-agency, goods supplied on mutually settled rates. (!) [23000140200002]

Defendants' Objections: - No cause of action at Amritsar; defendants do not carry on business there; specific agreement limits disputes to Bombay courts.[23000140200002] - Prior suit filed by defendants in Bombay for accounts and commission.[23000140200002] - Claimed interpolation in agreement adding "Amritsar"; relationship as principal-commission agent, business at Bombay.[23000140200002] (!)

Trial Court's Findings: - Part of cause of action arose in Amritsar (goods dispatched from there, F.O.R. Amritsar implying delivery there); prior sale-purchase transactions included.[23000140200003] - Suit treated as seller-purchaser, not principal-agent for accounts; court had territorial jurisdiction.[23000140200003]

Issues Framed: - Whether Amritsar court had jurisdiction. - Whether objection to territorial jurisdiction barred by Section 21 CPC.[judgement_subject]

Arguments on Revision: - Petitioner argued principal-agent relationship mandates Bombay courts; erroneous jurisdiction assumption warrants interference.[23000140200004] - Respondent argued seller-purchaser relationship; no failure of justice; commission issued to Bombay for evidence.[23000140200006]

Ratio Decidendi: - Section 21 CPC bars revisional interference on territorial jurisdiction objection unless taken earliest and consequent failure of justice proven; distance alone insufficient.[23000140200007] (!) (!) (!) (!) (!) (!) - No failure of justice shown (commission to Bombay issued; no material prejudice demonstrated).[23000140200006][23000140200007] (!)

Final Decision: - Revision dismissed; Amritsar court jurisdiction upheld absent failure of justice; parties to bear own costs. (!) [23000140200007]


Judgment

1. This is a revision preferred by the defendants from the order of the learned Subordinate Judge, 1st Class, Amritsar repelling the defendants objection to the jurisdiction of the Court below and holding that a part of the cause of action arose in Amritsar with the result that the Court below is empowered to entertain and try the suit.

2. According to the plaint, Tarlok Singh, the plaintiff, claims to be the sole proprietor of the business undertaking known and styled as Messrs. Virdi Industries and carries on the business of manufacture and sale of shuttles of different sizes. Defendant No. 1, Tarsema Textile Traders, is a firm of merchants carrying on business of sale and purchase of shuttles and Shri Chaman Lal Gupta, defendant No. 2, is the Managing partner of the said concern. The defendants began to purchase goods (shuttles) from the plaintiff as from 17-9-1957 which were being supplied from Amritsar and account of which was regularly maintained in the plaintiffs books of account. During the course of dealings by means of an indent dated 22-1-1958, defendant No. 1 through defendant No. 2 offered to act as plaintiffs agents for the sale of shuttles manufactured by the



















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