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1933 Supreme(All) 145

ALLAHABAD HIGH COURT
NIAMATULLAH, RACHHPAL SINGH, JJ.
Gaekwar Baroda State Railway - Appellant
Versus
Sheik Habib Ullah - Respondent
Decided On : 22-12-1933

JUDGMENT

Niamatullah, J. - I agree with the conclusions arrived at by any learned brother and desire to make a few observations on some of the questions of law which ha has so elaborately discussed in his judgment. It is contended on behalf of the defendant-appellant that the Court of the Subordinate Judge at Agra had no jurisdiction to try the suit. It is pointed out that the contract between the parties was entered into at Baroda, where payment was to be made, and that the defendant's place of business is also at Baroda. The plaintiff's reply to this objection is that the cause of action for the suit arose partly, at any rate, at every one of the places where, according to the terms of the contract between the parties, sleepers could be delivered and that Agra was one of the places where the contract made it permissible for the plaintiff to make delivery. The agreement does not mention in clear terms that the plaintiff could deliver at Agra; but the language employed in the various orders can leave no room for doubt that Agra was one of the places where sleepers could be delivered. To quote the precise words : "F.O.R. Stations on R.K., N.W., E.I., B.N., and B.N.W. Railways." These words are entered in a column headed materials to be supplied." I have no doubt that the words imply that sleepers may be supplied by the contractor free of rail at stations on the railway lines therein mentioned. It is not disputed that Agra is one of such stations. It was faintly suggested that the words merely make the dafendant liable for freight from the place where they are loaded and that there is nothing to warrant the supposition that delivery was to be made anywhere but the destination. I do not think that the words and the surrounding circumstances justify that view. It is not merely the liability to pay freight which is intended to be dealt with by these words in this part of the agreement. The words "materials to be supplied" with the words "F.O.R. Stations on... Railways" clearly mean that the sleepers shall be supplied at any of the stations on certain railway lines and thereafter the supplier's responsibility will end. This view finds support from Benaim and Co. v. Debono (1924) A.C. 514 decided by their Lordships of the judicial Committee. In that case a merchant carrying on business in Gibralter agreed to sell F.O.B. Gibralter to a merchant of Malta. It was found that the acceptance of the agreement having taken place in Malta the contract should be deemed to have been entered into there. In determining the place of performance the place of delivery assumed considerable importance. Their Lordships found that delivery was to be made in Gibralter which should be deemed to be the place of performance. In this view, I take it to be established that the agreement between the parties was that the plaintiff could supply sleepers at Agra where the defendant would take delivery and thereafter pay all charges of transport.

2. The second ground on which the jurisdiction of the learned Subordinate Judge of Agra, and indeed of every other Court in British India, is questioned has reference to the domicile of the defendant, Gaikwar of Baroda's State Railway, no part of whose organization is in British India. It is contended, mainly on the authority of Gurdial Singh v. Raja of Faridkot (1894) 22 Cal. 222 that territorial jurisdiction attaches (with special exceptions) upon all persons either permanently or temporarily resident within the territory, while they are within it; but it does not follow them after they have withdrawn from it, and when they are living in another independent country. Some of the dicta occurring in that case, at first sight, lend considerable force to the appellant's contention. To ascertain the ratio decidendi of that case in its true perspective, the circumstances of that case should be clearly borne in mind. The defendant in that case, who was a native of Jhind, an independent territory was sued by the Raja of Faridkot w

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