Bombay High Court Allows Appeal Against Return of Plaint in Licensee Possession Suit — City Civil Court Has Jurisdiction to Entertain Suit for Declaration and Injunction by Licensee. The impugned order was set aside as cryptic and without reasons, and the trial court was directed to proceed with the suit.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The appellants, original plaintiffs, filed a suit in the City Civil Court at Bombay seeking a declaration that the respondents had no right, title or interest to dispossess or disturb their possession over the suit premises, along with a permanent injunction. The appellants claimed to be licensees under a leave and licence agreement dated 26th September 2001. The suit was adjourned from time to time due to non-appearance of the respondents. Without any reply filed by the respondents, the learned trial Judge passed an order dated 18th July 2003 directing return of the plaint, holding that the City Civil Court had no inherent jurisdiction to entertain the suit as it related to protection of possession of a licensee under a leave and licence agreement. The appellants challenged this order in appeal. The High Court noted that the impugned order was cryptic and no reasons were assigned for the conclusion that the City Civil Court lacked inherent jurisdiction. The learned counsel for the appellants argued that the City Civil Court has jurisdiction to entertain such a suit. The High Court, after hearing the matter, set aside the impugned order and directed the trial court to proceed with the suit in accordance with law. The appeal was allowed.

Headnote

A) Civil Procedure - Jurisdiction - Inherent Jurisdiction - City Civil Court - Suit by Licensee for Declaration and Injunction - The trial court returned the plaint holding that the City Civil Court had no jurisdiction as the suit pertained to protection of possession of a licensee under a leave and licence agreement. The High Court held that the City Civil Court has inherent jurisdiction to entertain such a suit and the impugned order was cryptic and without reasons. (Paras 2-3)

B) Civil Procedure - Return of Plaint - Order 7 Rule 10 CPC - Lack of Reasons - The impugned order directing return of plaint was set aside as it was a cryptic order with no reasons assigned for concluding lack of inherent jurisdiction. (Para 2)

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Issue of Consideration

Whether the City Civil Court has inherent jurisdiction to entertain a suit filed by a licensee seeking declaration and injunction for protection of possession under a leave and licence agreement.

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Final Decision

Appeal allowed. Impugned order dated 18th July 2003 set aside. Trial court directed to proceed with the suit in accordance with law.

Law Points

  • Jurisdiction of City Civil Court
  • Leave and Licence Agreement
  • Inherent Jurisdiction
  • Return of Plaint under Order 7 Rule 10 CPC
  • Suit for Declaration and Injunction
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Case Details

2005 LawText (BOM) (01) 22

Appeal from Order No. 566 of 2003

2005-01-17

Abhay S. Oka

Shri A.M. Saraogi with Shri N.D. Kamble for the Appellants

Mohan Sardarmal Jain and Paresh Jayantilal Jain

Rajiv Kishor Shah, Kali Kishor Shah, Mrs. Manjula Kishor Shah, Shrayen Kishor Shah

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Nature of Litigation

Civil suit for declaration and injunction by licensees against alleged dispossession.

Remedy Sought

Appellants sought declaration that respondents had no right to dispossess them and permanent injunction.

Filing Reason

Appellants were inducted as licensees under a leave and licence agreement and sought protection of possession.

Previous Decisions

Trial court ordered return of plaint for lack of jurisdiction.

Issues

Whether the City Civil Court has inherent jurisdiction to entertain a suit by a licensee for declaration and injunction.

Submissions/Arguments

Appellants argued that the impugned order was cryptic and no reasons were assigned for lack of jurisdiction; the City Civil Court has jurisdiction.

Ratio Decidendi

The City Civil Court has inherent jurisdiction to entertain a suit filed by a licensee seeking declaration and injunction for protection of possession under a leave and licence agreement. The trial court's order returning the plaint was cryptic and without reasons, hence unsustainable.

Judgment Excerpts

The learned trial Judge held that the Court had no inherent jurisdiction to entertain and try the suit. The impugned order is a cryptic order and no reasons are assigned for coming to the conclusion that there was no inherent jurisdiction in the City Civil Court to grant the reliefs prayed for in the plaint.

Procedural History

Appellants filed suit in City Civil Court. Trial court passed order dated 18th July 2003 directing return of plaint. Appellants filed Appeal from Order No. 566 of 2003 in the High Court. High Court heard appeal on 11th January 2005 and adjourned for respondents' appearance. None appeared for respondents on 17th January 2005, and the High Court delivered judgment.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 7 Rule 10
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