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1981 Supreme(MP) 606

High Court Of Madhya Pradesh
H. G. Mishra, J.
KIRLOSKAR BROS.LTD., INDORE - Appellant
Versus
ENGINEERING MACHINERY MART, NARSINGHPUR, M.P. - Respondents
Misc. Appeal 181 Of 1978
Decided On : 10/26/1981

Advocates Appeared:
G.M.CHAPHEKAR, M.L.Agrawal, S.K.JAIN

Headnote:(1) Civil P.C., 1908 - S. 20 - agreement as to place of suing - two Courts having territorial jurisdiction - parties can agree to jurisdiction of any one of them-cannot impose jurisdiction on a Court which has no jurisdiction at all, such contract being against public policy-Contract Act, 1872-S. 28.

       (2) Contract Act, 1872 - S. 28 - contract as to place of suing - when against public policy.

       It is not open to the parties by agreement to confer by their agreement jurisdiction on a Court which it does not possess under the Code. But where two Courts or more have under the Code of Civil Procedure jurisdiction to try a suit or proceeding an agreement between the parties that the dispute between them shall be tried in one of such Courts is not contrary to public policy. Such an agreement does not contravene section 28 of the Contract Act. AIR 1971 SC 740 relied on.

       (Para 8)

       (3) Evidence Act, 1872 - S. 114-letter properly addressed and posted-presumption is not only of posting but also of its reaching the addressee-presumption is rebuttable-General Clauses Act, 1897-S. 27.

       On proof of the facts that a letter properly addressed containing the particular document is proved to have been put into the post office, it is presumed that the letter was sent through the post office reached the addressee. This presumption is not confined to the presumption of that letter being posted merely, but extends to its receipt by the addressed at its destination and at the proper time according to the regular course of business of the post office.

       (Para 10)

       It cannot be successfully contended that even when a letter is sent by post by pre-paying and properly addressing it, the presumption is confined to its being posted merely, but the presumption extends to the receipt thereof by the addressee. AIR 1918 PC 102, AIR 1957 SC 857, AIR 1976 SC 869, AIR 1961 SC 1284 and 1963 JLJ 85 relied on. 1974 JLJ 440 held not to be good law.

       (Para 12)

       The aforesaid presumption is of course rebuttable.

       (Para 14)

       (4) Precedents-High Court cannot be regarded to have proceeded contrary to the law laid down by the Privy Council and the Supreme Court governing the point.

       (Para 11)

       (5) Civil P.C., 1908 - agreement as to place of suing-continues till the transactions continue.

       (Para 17)

       

H. G. MISHRA, J.

( 1 ) THIS appeal is directed against the order of return of the plaint for presentation to the Court at Narsinghpur competent to entertain the same, passed on 31-8-1976, by the Second Addl. District Judge, Indore, in Civil Suit No. 19b of 1975.

( 2 ) NO exhaustive statement of facts is necessary for the decision of this appeal. Suffice it to state that the plaintiff-appellant-herein brought the suit giving rise to this appeal on 18-3-1975, in the Court of the Second Additional District Judge, Indore, for recovery of Rs. 37,580/-on the allegations that the defendant-respondent herein was the authorised dealer of the plaintiff-company for Narsinghpur district, Madhya Pradesh. As such, the defendant was afforded the facility of purchasing goods on credit and the defendant had opened an account with the plaintiff-company. After giving adjustment to the amount paid by the defendant in the account up to 31-7-1974, from time to time for goods purchased on credit from the plaintiff company, an amount of Rs. 27,132. 37 paise (Principal amount as per the ledger) is due from the defendant besides interest in an amount of Rs. 10,347. 63 paise. Adding to this amount Rs. 100/ on account if notice charges the suit has been brought for recovery of Rs. 37,580/- besides future interest and costs. In the cause of action clause para 12 of the plaint inter alia it has been averred that the plaintiff had also made it a condition of accepting execution of the defendant's order for supply of goods that all disputes relating to the supply of goods and payments thereof would be subject to the jurisdiction of the Courts at Indore.

( 3 ) IN answer to the suit the defendant denied the claim of the plaintiff and inter alia, in para 12 of the written statement raised an objection to the effect that the Courts at Indore have no jurisdiction to entertain the suit. The averments made by the plaintiff in para 12 of the plaint with regard to the Indore Courts having exclusive jurisdiction to entertain the suit, were denied and it was averred that in accordance with the terms of the initial agreement of dealership dated 1-8-1967, only the Courts at 'kirloskarwadi' had jurisdiction. On the expiry of the abovesaid agreement a fresh agreement was entered into between the parties for dealership on 12-12-1969 by virtue of which the defendant had made an express condition that "all disputes arising between the parties would be subject to the jurisdiction of the Narsinghpur Courts only. " This condition was endorsed by defendant on the dealership agreement and was forwarded to the plaintiff along with a letter of defendant of the same date, wherein this condition was reiterated and it was stated that unless the plaintiff agreed to defendant's condition of Narsinghpur jurisdiction only the defendant would not accept the dealership. On receipt of the aforesaid letter and the dealership agreement the plaintiff never raised any objection, but on the contrary started supplying goods to the defendant under the dealership agreement. Thus the plaintiff accepted that the dispute arising out of the agreement shall be subject to the jurisdiction of Narsinghpur Courts only. The defendant has accordingly instituted Civil Suit No. 4a/75 in the Court of Additional District Judge, Narsinghpur foe declaration and injunction and another Suit No 50b/75 in the Court of Civil Judge, Narsinghpur for rendition of accounts. This agreement dated 12-12-1969 was signed and accepted by the defendant at Narsinghpur. Under this agreement the goods were to be supplied at Narsinghpur and the price was also payable at Narsinghpur. The Courts at Narsinghpur have thus an exclusive jurisdiction to try the suit. It is humbly submitted that this Hon'ble Court has no jurisdiction to entertain the suit and the plaint is liable to returned for presentation to the proper Court.

( 4 ) ON the basis of the pleadings of the parties the trial Court framed issues, including issue No. 6 which reads a

































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