COMAP. No.14 OF 2021

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 20^TH DAY OF JULY, 2021

PRESENT

THE HON’BLE MR. ABHAY S. OKA, CHIEF JUSTICE

AND

THE HON’BLE MR. JUSTICE SURAJ GOVINDARAJ

COMAP. No.14 OF 2021

BETWEEN:

M/S M.P. BROTHERS (MANGALURU)

A REGISTERED PARTNERSHIP FIRM

HAVING THEIR OFFICE AT SHREYAS CHAMBERS

KULUR FERRY ROAD, CHILIMBI

MANGALURU-575006

DULY REPRESENTED REGIONAL HEAD

AND AUTHORISED SIGNATORY

SRI. KETHAN SANGHVI

S/O SRI. DHIRAJ LAL SANGHVI

AGED 52 YEARS

R/AT NO.505

VAJRESHWARI APARTMENTS

V.T. ROAD, MANGALURU-575001

... APPELLANT

(BY SRI. S.N. PRASHANTH CHANDRA, ADVOCATE-VC)

AND:

THE PANDAVAPURA SAHAKARA

SAKKARE KARKHANE LTD.,

A COMPANY INCORPORATED UNDER

THE INDIAN COMPANIES ACT AND

HAVING ITS REGISTERED OFFICE AT

PANDAVAPURA, R.S. MANDYA-571435

DULY REPRESENTED BY ITS AUTHORISED

PERSON AND MANAGING DIRECTOR

SRI. KRISHNEGOWDA

FATHER’S NAME NOT KNOWN TO THE

COMAP. No.14 OF 2021

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PLAINTIFF, HINDU ADULT

M/S PANDAVAPURASAHAKARA

SAKKAREKARKHANE LTD

PANDAVAPURA. R.S.MANDYA-571435

… RESPONDENT

(RESPONDENT-SERVED)

THIS APPEAL IS FILED UNDER SECTION 13(1) OF THE

COMMERCIAL COURT ACT 2015, PRAYING TO ALLOW THE APPEAL

AND THEREBY SET ASIDE THE JUDGMENT AND DECREE IN

COM.O.S.NO.400/2020 DATED 15.12.2020 ON THE FILE OF IV

ADDITIONAL DISTRICT AND SESSIONS JUDGE (COMMERCIAL

COURT) DK, MANGALORE, IN THE INTEREST OF JUSTICE AND

EQUITY.

*****

THIS APPEAL COMING ON FOR ADMISSION AND HAVING

BEEN RESERVED FOR ORDERS ON 07.06.2021, THIS DAY,

SURAJ GOVINDARAJ J., DELIVERED THE FOLLOWING:

J U D G M E N T

1.

The appellant is before this Court seeking for setting

aside

the

Judgment

and

decree

in

COM.OS

No.400/2020 dated 15.12.2020 passed by the IV Addl.

District and Sessions Judge, D.K., Mangaluru (for short

‘trial Court’) .

2.

By virtue of the aforesaid Judgment, the trial Court

considered the aspect of jurisdiction as a preliminary

issue and dismissed the Suit by holding that the trial

COMAP. No.14 OF 2021

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Court did not have the jurisdiction to try the same, as

also imposed cost of Rs.20,000/- on the Plaintiff.

3.

For convenience, the parties are referred to by their

rank before the trial Court.

4.

FACTS: The material facts for the purpose of

consideration of this appeal, in brief, are as under:

4.1. Plaintiff is an authorised distributor of certain

products, the Defendant is a factory having its

office at Pandavapura, Mandya District. Plaintiff

and Defendant have had several business

transactions in the past whereunder the Plaintiff

supplied certain products to the Defendant.

4.2. The Plaintiff contended that from and out of the

said transactions, several amounts are due to the

Plaintiff and as such, a suit in O.S. No.279/2018

came to be filed in the year 2018 before the

Principal Senior Civil Judge and CJM at

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Mangaluru for recovery of Rs.11,28,521/- along

with interest at 21% p.a.

4.3. The Defendant entered appearance and filed the

written statement denying the claim of the

Plaintiff, by relying on clause 14 of the Tender

Form contended that all disputes are subject to

the jurisdiction of the Court at Pandavapura only

and hence, the Senior Civil Judge and CJM,

Mangaluru would not have jurisdiction to try the

same. Apart therefrom, it was contended that the

said Court did not have the jurisdiction, and the

Commercial Court would have to try the same.

4.4. Subsequent to the filing of the Suit due to the

government notification dated 24.01.2020 the

matter came to be transferred from the IV Addl.

Civil Judge and JMFC, Mangaluru to the IV Addl.

District and Sessions Judge, D.K., Mangaluru

and renumbered as COMP. OS. No.400/2020.

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4.5. On such transfer, the transferee Court on

29.07.2020 framed the following issues:

1.

Whether the Plaintiff proves that, the defendants

being regular custome