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2024 Supreme(Online)(KER) 10863

HIGH COURT OF KERALA
V. G. Arun, J
SANGHA ERECTORS PVT LTD – Appellant
Versus
LAXMI CRANES AND TRAILERS PVT LTD – Respondent
CRP NO. 288 OF 2019 | OS 1358/2017



Advocates:
For the Appellants/Petitioners: P.SANJAY, SMT.A.PARVATHI MENON
For the Respondents: MANU ROY

A contract's jurisdiction is enforceable only when there is clear mutual consent among parties, particularly in the absence of exclusive wording in the jurisdiction clause.

Headnote:(A) Civil Procedure Code - Section 20(c) - Jurisdiction - Suit for recovery of hire charges - Revision petition against dismissal of application for return of plaint on grounds of lack of territorial jurisdiction - Parties had not conferred exclusive jurisdiction on courts mentioned in purchase order - Need for consensus on jurisdiction established through correspondence - Decision backed by precedent. (Paras 7, 10, 11)

(B) Contract Law - Exclusive jurisdiction clause - Conditions for enforcing - Mere absence of terms 'alone', 'only', 'exclusive' not decisive - Evident intention of the parties crucial - Court must ascertain mutual consensus regarding jurisdiction. (Paras 8, 10)

Facts of the case:
The revision petitioner, a defendant, is being sued for unpaid hire charges corresponding to a crane hired under an agreement. The petitioner contended lack of jurisdiction of the Ernakulam court based on the agreement's clause granting jurisdiction to Telangana courts.

Findings of Court:
Court ruled that there was no exclusive jurisdiction conferred by the parties on the Telangana courts since relevant clauses lacked necessary terms and no clear consensus was observed in their communications.

Issues: Whether the court had jurisdiction in light of the contested agreement and circumstances of the case.

Ratio Decidendi: The court determined that exclusive jurisdiction was not conferred due to lack of unequivocal evidence of mutual consent between the parties, thus affirming the lower court's ruling.

Result: Revision petition dismissed.

Table of Content
1. facts of the case presented. (Para 1)
2. arguments regarding territorial jurisdiction. (Para 2 , 3)
3. munsiff's dismissal of jurisdiction application. (Para 4)
4. arguments on intended jurisdiction based on agreements. (Para 5 , 6)
5. analysis of exclusive jurisdiction clauses. (Para 7 , 8)
6. discussion on consensus for jurisdictional acceptance. (Para 9 , 10)
7. conclusion on jurisdiction dismissal. (Para 11)

ORDER

Dated this the 08th day of January, 2024 The revision petitioner is the defendant in O.S.No.1358 of 2017 on the files of the Additional Munsiff Court, Ernakulam. The suit is filed by the respondent/plaintiff, seeking to realise a sum of Rs.8,69,836/- from the revision petitioner, along with interest at the rate of 18% per annum from 17.04.2016 onwards. The averments in the suit are to the following effect;

In 2016, the defendant expressed interest in hiring one Crawler Mounted Crane having capacity of 165 MT from the plaintiff for engaging in their project site in Chattisgarh. After negotiations, the defendant issued a purchase order dated 11.03.2016 containing the commercial terms and conditions for hiring the Crawler Mounted Crane. The purchase order was accepted by the plaintiff with certain modifications and the crane was given on hire. Thereafter, the defendant failed and neglected to pay the hire charges, even after issuance of repeated demand notices.

2. On receipt of notice in the suit, the revision petitioner entered appearance and filed I.A.No.3160 of 2018, praying to return the plaint for presentation before the court in which the suit should have been instituted. It was contended by the revision petitioner that the Munsiff Court, Ernakulam lacks territorial jurisdiction since no part of the cause of action had arisen at Ernakulam. It was further contended that, as per Clause 17 of the terms and conditions of the purchase order dated 11.03.2016, only the courts in Secunderabad, Hyderabad, Telangana State have jurisdiction with respect to the disputes arising out of the agreement.

3. The plaintiff filed counter affidavit, contending that, in the letter dated 14.03.2016, issued in reply to the purchase order dated 11.03.2016, amendments with respect to the working hours and payment of hire charges had been suggested and the revision petitioner had not objected to those amendments. In the reply letter, it was also specified that the actions of the plaintiff would be subject to Cochin jurisdiction alone.

4. The learned Munsiff, after detailed consideration, dismissed the application seeking return of plaint, finding the contention regarding lack of territorial jurisdiction to be untenable. Hence, this revision petition.

5. Adv. Parvathi Menon, learned Counsel for the revision petitioner contended that, the parties having agreed to confer exclusive jurisdiction on the courts situated in the places mentioned in the purchase order dated11.03.2016, the court below grossly erred in relying on the printed words in the letter dated 14.03.2016, to hold that the court at Ernakulam has got jurisdiction. In the reply letter dated 14.03.2016 issued by the plaintiff, only the conditions with respect to working hours and payments were sought to be amended. The silence on the part of the plaintiff with respect to the exclusive jurisdiction clause amounts to consent. The Apex Court decision inSwastik Gases (P) Ltd v Indian Oil Corpn.Ltd [ (2013) 9 SCC 32 ] and decision of the High Court of Calcutta in Shridhar Vyapaar Private Limited v Gammon India Limited [2018 SCC OnLine Cal 11749] are pressed into service to buttress the contention. Relying on the Division Bench decision of this Court in India Roadway Corporation v. Unneerikutty [1990 (1) KLT 292], it is contended that the printed words 'subject to Cochin jurisdiction', at the bottom of the letterhead, cannot be treated as a special contract conferring exclusive jurisdiction on Cochin Courts.

6. Adv.Manu Roy, learned Counsel appearing for the respondent, support

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