Case Note & Summary
The appellant, original plaintiff, filed a Short Cause Suit No. 3585 of 2001 seeking enforcement of an agreement dated 30th March 2000 executed by Respondent No.1 in his favour for sale of flat No.101. The suit also sought a declaration that the agreement was binding on Respondent No.2, who had acquired the entire property by a subsequent document dated 6th July 2001. The trial court, by judgment and order dated 2nd September 2003, answered the issue of jurisdiction against the appellant and ordered return of the plaint. The appellant challenged this order in appeal. The High Court held that the trial court erred in returning the plaint without considering that part of the cause of action, including the execution of the suit agreement and the location of the flat, arose within its territorial jurisdiction. The court set aside the impugned order and directed the trial court to proceed with the suit in accordance with law.
Headnote
A) Civil Procedure - Territorial Jurisdiction - Return of Plaint - Section 26, Code of Civil Procedure, 1908 - The trial court erred in returning the plaint on the ground of lack of jurisdiction without considering that the suit agreement was executed within its jurisdiction and the flat was situated within its jurisdiction, giving rise to part of the cause of action. Held that the court must examine the plaint allegations to determine jurisdiction and cannot return the plaint solely based on the location of the property if other parts of cause of action arise within its jurisdiction (Paras 1-5).
Issue of Consideration
Whether the trial court was justified in returning the plaint on the ground of lack of territorial jurisdiction when part of the cause of action arose within its jurisdiction.
Final Decision
The appeal is allowed. The impugned judgment and order dated 2nd September 2003 is set aside. The trial court is directed to proceed with the suit in accordance with law.
Law Points
- Jurisdiction
- Cause of Action
- Agreement to Sell
- Specific Performance
- Return of Plaint
- Territorial Jurisdiction
Case Details
2005 LawText (BOM) (03) 6
Appeal from Order No. 850 of 2003
Mr. R.S. Apte with M.S. Lagu for the appellant; T.M. Joshi for respondent No.2
Shri Jaydeep Jaywant Chaudhary
Shri Sharad Krishnajirao Raut and M/s. Arihant Enterprises
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Nature of Litigation
Civil suit for specific performance of an agreement to sell a flat and declaration that the agreement is binding on a subsequent purchaser.
Remedy Sought
The appellant (original plaintiff) sought enforcement of the suit agreement dated 30th March 2000 and a declaration that it is binding on Respondent No.2.
Filing Reason
The appellant filed the suit because Respondent No.1 failed to perform the agreement and transferred the property to Respondent No.2.
Previous Decisions
The trial court answered the issue of jurisdiction against the appellant and ordered return of the plaint by judgment and order dated 2nd September 2003.
Issues
Whether the trial court was correct in returning the plaint on the ground of lack of territorial jurisdiction.
Submissions/Arguments
The appellant argued that part of the cause of action arose within the jurisdiction of the trial court as the suit agreement was executed there and the flat was situated there.
The respondents contended that the property was outside the jurisdiction and therefore the court lacked jurisdiction.
Ratio Decidendi
The trial court must examine the plaint allegations to determine if any part of the cause of action arose within its jurisdiction. The mere fact that the property is situated elsewhere does not oust jurisdiction if other parts of cause of action arise within the court's territorial limits.
Judgment Excerpts
This Appeal is preferred by the original Plaintiff - Appellant for challenging the judgment and order dated 2nd September 2003 passed by the learned trial Judge.
By the impugned order, the learned Judge has answered the issue of jurisdiction against the Appellant - Plaintiff and has ordered the return of the plaint.
Procedural History
The appellant filed Short Cause Suit No. 3585 of 2001. The trial court, after hearing, passed an order on 2nd September 2003 returning the plaint for lack of jurisdiction. The appellant appealed against that order.
Acts & Sections
- Code of Civil Procedure, 1908: Section 26
