1998 Supreme(P&H) 675
PUNJAB & HARYANA HIGH COURT
Sat Pal, J.
Harinder Kumar Sole Prop.Of Kissan Khad Store
Versus
Coromandal Fertilizers Ltd.
Civil Revision No. 363 of 1997,
Decided On : MAY 13, 1998
A court may treat an issue of law as a preliminary issue if it relates to the jurisdiction of the court or a bar to the suit created by any law.
Headnote:
ORDER 14 RULE 2(2) CPC - PRELIMINARY ISSUE - ORDER 14 RULE 2(2) CPC - COURT'S DISCRETION TO TREAT ISSUE AS PRELIMINARY - JURISDICTION - INTERPRETATION AND APPLICATION.
Fact of the Case:
Petitioner filed a suit against the respondent for recovery of money. Respondent raised a preliminary objection that the court lacked jurisdiction. The trial court allowed the respondent's application to treat the issue of jurisdiction as a preliminary issue.
Finding of the Court:
The court held that the trial court was correct in treating the issue of jurisdiction as a preliminary issue. The court noted that sub-rule (2) of Rule 2 of Order 14 CPC allows the court to try an issue of law as a preliminary issue if it relates to the jurisdiction of the court or a bar to the suit created by any law.
Issues: Whether the trial court erred in treating the issue of jurisdiction as a preliminary issue.
Ratio Decidendi: The court held that the trial court did not err in treating the issue of jurisdiction as a preliminary issue. The court noted that the issue of jurisdiction was an issue of law and that if it was decided in favor of the respondent, the suit would be dismissed. The court also noted that the trial court had afforded the parties an opportunity to lead evidence before deciding the issue.
Final Decision: The petition was dismissed.
Sat Pal, J.
1. This petition has been directed against the order dated 10.12.1996 passed by Additional Civil Judge (SD) Rajpura. By this order, the learned trial court has allowed the application filed by respondent-defendants under order 14 Rule 2(2) read with Sections 20 and 151 CPC for treating issue regarding the territorial jurisdiction as preliminary issue. Notice of this petition was issued to the respondent.
2. In this case, the petitioner-plaintiff has filed a suit against the respondent-defendant for recovery of Rs. 9,63,523-94 P alongwith interest at the rate of 18% per annum. In the written statement filed on behalf of the respondent-defendants, preliminary objection has been raised that the court has no jurisdiction to try, entertain and to adjudicate upon the suit filed by the petitioner. On the basis of the pleadings of the parties, the issues were framed by the learned trial court and one of the issues framed is with regard to the territorial jurisdiction of the learned trial court.
3. After framing of the issues, the respondents-defendants filed an application under Order 14 Rule 2(2) read with Section 20 and Section 151 CPC for treating the issues regarding territorial jurisdiction of the court as a preliminary issue. The said application has been allowed by the learned trial court vide impugned order dated 10.12.1996.
4. Mr. Gupta, the learned counsel appearing on behalf of the petitioner submitted that issue with regard to territorial jurisdiction involves disputed questions of facts and law in the present case and as such this issue could not be treated as a preliminary issue. In support of his submission, the learned counsel has placed reliance on a Division Bench judgment of this Court in Bhag Singh v. Nek Singh, (1994-3)108 P.L.R. 151 and a Single Bench judgment of this court in Saraswati Spinning Mills v. Gheru Lal Bal Chand, 1980 P.L.J. 572.
5. Mr. Kanwaljit Singh, the learned counsel appearing on behalf of the respondents, however, submitted that trial Court can treat an issue as a preliminary issue if it is of the opinion that the case or any part thereof can be disposed of on that issue and further the said issue relates to the jurisdiction of the court. He, therefore, contended that in the present case the learned trial court after examining the pleadings of the case has come to the conclusion that the issue of jurisdiction should be tried as a preliminary issue and as such this court in its jurisdiction under Section 115 CPC should not interfere with such an order. In support of his submission the learned counsel has placed reliance on a judgment of this Court in Gurbaksh Singh v. Gurbakshish Singh, (1995-3) P.L.R. 435. As regards the case of Bhag Singh (supra), the learned counsel submitted that the facts in that case were different to the facts of the present case as in that case it was held that the issue of jurisdiction could not have been decided without affording the parties opportunity to lead evidence and as such the learned Single Judge was not justified deciding the said issue without affording the other party an opportunity to lead evidence in support of their contention.
6. In have given my thoughtful consideration to the submissions made by the learned counsel of the parties and have perused the records of the case.
7. Before dealing with the rival contention of the learned counsel of the parties it will be relevant to refer to Sub rule (2) of Rule 2 of Order 14 CPC which reads as under :-
"Order 14 Rule 2(1) xxx xxx xxx
(2) 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) a bar to the suit created by any law for the time being in force, and for that purpose, may, if it thinks fit, postpone the settlement of the other issues until after that issue has been determi