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1997 Supreme(P&H) 822

PUNJAB AND HARYANA HIGH COURT
Sat Pal, J.
Harinder Kumar - Petitioner
Versus
M/s Coromandal Fertilizers Ltd. - Respondents
Civil Revision No. 363 of 1997.
Decided On : 13 May, 1997

Advocates Appeared:
For the Petitioner:Mr. P.K. Gupta, Advocate.
For the Respondents:Mr. Kanwaljit Singh, Advocate.

A 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.

Headnote:

ORDER 14 RULE 2(2) CPC - JURISDICTION - ORDER 14 RULE 2(2) CPC - PRELIMINARY ISSUE - 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.

Fact of the Case:

Petitioner filed a suit against the respondent for recovery of money. Respondent raised a preliminary objection that the court has no jurisdiction to try the suit. The trial court allowed the respondent's application to treat the issue of territorial jurisdiction as a preliminary issue.

Finding of the Court:

The court held that the trial court was justified in treating the issue of territorial jurisdiction as a preliminary issue. The court noted that the issue of territorial jurisdiction is an issue of law and that if it is decided in favor of the respondent, the suit will be dismissed. The court also noted that the trial court had afforded the parties an opportunity to lead evidence before deciding the preliminary issue.

Issues: Whether the trial court was justified in treating the issue of territorial jurisdiction as a preliminary issue.

Ratio Decidendi: The court held that the trial court was justified in treating the issue of territorial jurisdiction as a preliminary issue because: * The issue of territorial jurisdiction is an issue of law. * If the issue of territorial jurisdiction is decided in favor of the respondent, the suit will be dismissed. * The trial court had afforded the parties an opportunity to lead evidence before deciding the preliminary issue.

Final Decision: The petition was dismissed with no order as to costs. The trial court was directed to afford the parties an opportunity to lead evidence if they so desire before deciding the preliminary issue with regard to territorial jurisdiction.

JUDGMENT

Sat Pal, J. - 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. 963528.94 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 treading 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) Recent Revenue Reports 271 (P&H) (DB) and a single Bench judgment of this court in M/s Saraswati Spinning Mills v. M/s Gheru Lal Bal Chand, 1980 PLJ 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 PLJ 572. 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 in deciding the said issue without affording the other party an opportunity to lead evidence in support of their contention.

6. I 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 which reads a under :-

"Order 14 Rule 2

(1) xxx xxxx 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 ha







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