Bombay High Court Holds That Court Has Jurisdiction to Entertain Suit for Renewal of Lease Based on Cause of Action Arising Within Its Territorial Limits. The court found that the suit property is situated in Mumbai, the lease deed was executed in Mumbai, the renewal was to be performed in Mumbai, and the defendants carry on business in Mumbai, thus the court has jurisdiction.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, BPM Industries Limited, filed a suit on 27 August 1999 seeking a declaration that the Indenture of Lease dated 6 May 1949 in respect of the suit property had been renewed with effect from 1 May 1999 for a period of 50 years, and for specific performance of the contract for renewal of the lease contained in the said Indenture of Lease, the Agreement dated 31 August 1955, and the Deed of Conveyance dated 25 November 1993. The defendants, Samartha Development Corporation, filed a written statement raising a preliminary objection regarding the jurisdiction of the Bombay High Court to try and entertain the suit. Consequently, on 24 September 2010, the court framed a preliminary issue: 'Whether this Court has jurisdiction to try and entertain the present Suit?' The court examined the pleadings and found that the suit property is situated in Mumbai, the lease deed was executed in Mumbai, the renewal was to be performed in Mumbai, and the defendants carry on business in Mumbai. Therefore, the court held that it has jurisdiction to try and entertain the suit. The issue was answered in the affirmative.

Headnote

A) Civil Procedure - Jurisdiction - Cause of Action - Sections 16, 20 Code of Civil Procedure, 1908 - The court held that the suit property is situated in Mumbai, the lease deed was executed in Mumbai, the renewal was to be performed in Mumbai, and the defendants carry on business in Mumbai, thus the court has jurisdiction. (Paras 1-3)

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Issue of Consideration

Whether the Bombay High Court has jurisdiction to try and entertain the suit for renewal of lease and specific performance of the contract for renewal.

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Final Decision

The court answered the preliminary issue in the affirmative, holding that it has jurisdiction to try and entertain the suit.

Law Points

  • Jurisdiction
  • Cause of action
  • Lease renewal
  • Specific performance
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Case Details

2010:BHC-OS:13485

SUIT NO. 5244 OF 1999

2010-11-22

R.Y. Ganoo, J.

2010:BHC-OS:13485

Mr. Shyam Mehta with Zal Andhyarujina i/b. Yasmin Bhansali & Co. for the Plaintiffs; Mr. V.A. Thorat, Sr. Counsel with Vaibhav Sugdare, Rohan Rajadhyaksha and Vinay Bandiwadekar i/b. Mahimtura and Co. for the Defendants.

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Nature of Litigation

Civil suit for declaration of renewal of lease and specific performance of contract for renewal.

Remedy Sought

Plaintiff seeks declaration that lease stood renewed for 50 years from 1 May 1999 and specific performance of renewal contract.

Filing Reason

Defendants refused to renew the lease as per the terms of the original lease deed and subsequent agreements.

Issues

Whether this Court has jurisdiction to try and entertain the present Suit?

Submissions/Arguments

Defendants raised preliminary objection regarding jurisdiction of the court.

Ratio Decidendi

The court has jurisdiction because the suit property is situated in Mumbai, the lease deed was executed in Mumbai, the renewal was to be performed in Mumbai, and the defendants carry on business in Mumbai, thus the cause of action arose within the court's territorial limits.

Judgment Excerpts

The Plaintiffs instituted this Suit on 27th August 1999 for following reliefs... Whether this Court has jurisdiction to try and entertain the present Suit ?

Procedural History

Suit filed on 27 August 1999. Written statement filed raising jurisdiction issue. On 24 September 2010, preliminary issue framed. Judgment delivered on 22 November 2010.

Acts & Sections

  • Code of Civil Procedure, 1908: Sections 16, 20
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