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2024 Supreme(MP) 806

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
HIRDESH, J.
Sunil Lulla - Appellant
Versus
Nirmala Janki Cinemas Pvt. Ltd. - Respondent
Civil Revision No. 241 of 2015
Decided On : 05-02-2024

Advocates Appeared:
For the Appellant : Sameer Athawale
For the Respondent: Lokesh Mehta

Jurisdiction depends on the actual location of cause of action, not merely on where communications occur; e-mails do not constitute cause of action.

Headnote:(A) Civil Procedure Code - Section 115 and Order 7 Rule 10 - Jurisdiction of courts - Dismissal of application challenging jurisdiction of the court to try the civil suit - Cause of action not arising at Mhow, but at negotiations in Delhi and Mumbai. The lower court's findings were deemed erroneous as negotiations and agreements occurred outside the jurisdiction. (Paras 2, 12)

(B) Interpretation of 'Cause of Action' - Jurisdiction must be established on the basis of where the cause of action arose, not merely where communications were exchanged. The court clarified that e-mails do not create a cause of action. (Paras 8, 10, 11)

Facts of the case:
The appellant contested the jurisdiction of the court in Mhow regarding a civil suit filed by the respondent for recovery of commission on a film distribution deal. The appellant argued negotiations occurred at other locations, while the respondent claimed jurisdiction based on correspondence from Mhow.

Findings of Court:
The court determined that the trial court erred in ruling that the case was triable in Mhow, emphasizing that no significant actions connected to the cause of action took place there.

Issues: The primary issue was whether the Mhow court had jurisdiction given the location of negotiations and actions related to the case.

Ratio Decidendi: The court concluded that jurisdiction is dependent on where the cause of action arose, stating, “E-mails do not create a cause of action.”

Result: The order of the trial court was set aside, and the plaint was directed to be returned for filing at the appropriate jurisdiction.

Table of Content
1. overview of the jurisdictional challenge in the case. (Para 1 , 2)
2. arguments regarding the cause of action and jurisdiction. (Para 3 , 4 , 5 , 6)
3. court's analysis on the jurisdiction and cause of action. (Para 8 , 9 , 11)
4. interpretation of cause of action and territorial jurisdiction. (Para 10 , 12)
5. conclusion regarding the trial court's order. (Para 13 , 14)

ORDER :

1. This civil revision under Section 115 of CPC has been preferred against the impugned order dated 10.07.2015 passed by Second Additional District Judge, Mhow, District-Indore in Civil Suit No.8- B/2013, whereby an application filed by the petitioner under Order 7 Rule 10 of CPC challenging the jurisdiction of the court to try the suit has been dismissed.

2. Brief facts of the case are that petitioner and respondent Nos.4 and 5 are the office bearers of M/s. Eros International Media Ltd., Mumbai engaged in the business of purchasing and distributing the films. The respondent No.1 filed a civil suit before the court at Mhow, District- Indore against the petitioner and respondent Nos.2 to 5 for the recovery of amount of Rs.74,11,600/- on the ground that the plaintiff/respondent No.1 happens to be a limited company and are engaged in the business of commission agent in the film distribution, sale and purchase of films and they receive 2% as the commission in the process but in the present case this commission was 1.5%. The case of the plaintiff is that the defendant Nos.1 and 2 (respondent Nos.2 and 3) produced a film “Teri Meri Kahani” which was to be distributed throughout India for which services of plaintiff was availed. The contention of the plaintiff is that he got a deal struck with M/s. Wave Industries Pvt. Ltd. who agreed to purchase the film for consideration of Rs.48 Crores, therefore, petitioner is entitled for receiving his commission as Rs.72 Lacs. According to the plaintiff, the negotiation in this regard took place at various places like Mumbai, Delhi and Gaziabad and certain phone calls were also made from the plaintiff's registered office at Mhow. Hence, the cause of action has arisen at Mhow.

3. The petitioner and respondent Nos.4 and 5 preferred an application under Order 7 Rule 10 of CPC before the Court at Mhow bcontending that no cause of action has arisen at Mhow where the office of the plaintiff/respondent No.1 is situated and if at all an cause of action has arisen, the same would have arisen either at Mumbai or at Delhi. The aforesaid application was opposed by the respondent No.1 by filing a reply.

4. The contention of the learned counsel for the petitioner is that the lower court without properly considering the application of the petitioner vide order dated 10.07.2015 held that the jurisdiction to try the case of the plaintiff lies at Mhow court only, as the registered office of the plaintiff is at Mhow, District-Indore and certain e-mails and phone calls have been placed from Mhow, which has also given rise to the jurisdiction of Mhow Court. He further submits that impugned order is contrary to facts and law on record as no cause of action has arisen at Mhow. The negotiations took place at Mr. Ponty Chaddhas Farm House at New Delhi thus, no cause of action has arise at Mhow and one of the defendants have ever had any negotiations or agreements at Mhow and as such nothing material has taken place at Gram Kodariya, Tehsil, Mhow. He further submits that Section 20 of CPC does not entitle a person to file a suit where he resides or has place of business.

5. Learned for the petitioner has placed reliance upon the judgment delivered by the Apex Court in the case of Archana Sarees, Chanderi, District Ashok Nagar Vs. M.P. Handicraft and Handloom Development Corporation Ltd. and others , 2010 MPLJ 88 [MA No. 958/2007 decided on 19.02.2020].

6. Learned counsel for the respondent opposed the petition and supported the impugned order stating that cause of action has arisen at Mhow and the Court at Mhow certainly has the juris

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