Bombay High Court Allows Second Appeal in Territorial Jurisdiction Dispute Under Section 21 CPC — Lower Appellate Court Erred in Reversing Trial Court's Finding on Jurisdiction Without Considering Waiver. The Court Remanded the Matter for Fresh Consideration on Whether the Objection Was Waived and Whether There Was Failure of Justice.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The appellant, Miss Mridula Nikhar, filed a suit for recovery and possession of movable assets based on an agreement with the respondent, Shah Nature and Health Project Pvt. Ltd. The suit was filed before the Civil Judge Junior Division, Canacona, as the movable assets were located in a structure at Canacona. The respondent opposed the suit, raising an objection that the court lacked territorial jurisdiction, claiming the suit should have been filed in Panjim. The trial court decreed the suit in favor of the appellant, holding that Canacona Court had jurisdiction. The respondent appealed to the District Judge, South Goa at Margao, who allowed the appeal and set aside the trial court's decree solely on the ground of lack of territorial jurisdiction. The appellant then filed a second appeal before the Bombay High Court at Goa. The High Court admitted the appeal on the substantial question of law whether the Lower Appellate Court was justified in concluding that the suit lacked territorial jurisdiction under Section 21 of the Code of Civil Procedure, 1908. The High Court observed that the Lower Appellate Court did not consider whether the respondent had waived the objection by not raising it at the earliest opportunity or whether there was any failure of justice. The High Court set aside the Lower Appellate Court's order and remanded the matter for fresh consideration, directing the appellate court to decide the appeal afresh after giving both parties an opportunity to be heard, specifically on the applicability of Section 21 CPC.

Headnote

A) Civil Procedure - Territorial Jurisdiction - Section 21 CPC - Waiver of Objection - The Lower Appellate Court reversed the trial court's decree on the ground of lack of territorial jurisdiction without considering whether the respondent had waived the objection under Section 21 CPC. The High Court held that the appellate court must examine if the objection was taken at the earliest opportunity and if there was any consequent failure of justice. The matter was remanded for fresh consideration on this aspect. (Paras 2, 8-10)

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Issue of Consideration

Whether the Lower Appellate Court was justified to come to the conclusion that the suit filed by the appellant had no territorial jurisdiction in terms of Section 21 of the Civil Procedure Code.

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Final Decision

The High Court allowed the second appeal, set aside the impugned order of the Lower Appellate Court dated 7/09/2012, and remanded the matter to the Lower Appellate Court for fresh consideration. The Lower Appellate Court was directed to decide the appeal afresh after giving both parties an opportunity to be heard, specifically on the applicability of Section 21 of the Code of Civil Procedure, 1908.

Law Points

  • Territorial jurisdiction
  • Section 21 CPC
  • waiver of objection
  • substantial question of law
  • second appeal
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Case Details

2013 LawText (BOM) (07) 143

Second Appeal No.189 of 2012

2013-07-23

F.M. Reis

Shri R.G. Ramani for Appellant, Shri S.M. Singbal for Respondent

Miss Mridula Nikhar

Shah Nature and Health Project Pvt. Ltd.

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Nature of Litigation

Second appeal against order of Lower Appellate Court setting aside trial court decree on ground of lack of territorial jurisdiction.

Remedy Sought

Appellant sought to restore the trial court decree and challenge the Lower Appellate Court's order.

Filing Reason

Appellant aggrieved by Lower Appellate Court's decision that the suit lacked territorial jurisdiction.

Previous Decisions

Trial court decreed suit in favor of appellant; Lower Appellate Court allowed respondent's appeal and set aside decree.

Issues

Whether the Lower Appellate Court was justified in concluding that the suit had no territorial jurisdiction under Section 21 CPC.

Submissions/Arguments

Appellant argued that the Lower Appellate Court erred in reversing the trial court's finding on jurisdiction without considering waiver under Section 21 CPC. Respondent contended that the suit ought to have been filed in Panjim and that the trial court lacked territorial jurisdiction.

Ratio Decidendi

The Lower Appellate Court must consider whether the objection to territorial jurisdiction was waived under Section 21 CPC, i.e., whether it was taken at the earliest possible opportunity and whether there was any consequent failure of justice. The appellate court cannot reverse a decree solely on the ground of lack of territorial jurisdiction without examining these aspects.

Judgment Excerpts

Whether the Lower Appellate Court was justified to come to the conclusion that the suit filed by the appellant had no territorial jurisdiction in terms of Section 21 of the Civil Procedure Code. The Lower Appellate Court did not consider the aspect of waiver under Section 21 CPC.

Procedural History

Appellant filed Regular Civil Suit No.54/2010 before Civil Judge Junior Division, Canacona, which was decreed on 31/12/2010. Respondent appealed to District Judge, South Goa at Margao in Regular Civil Appeal No.46/2011, which was allowed on 7/09/2012, setting aside the trial court decree. Appellant then filed Second Appeal No.189/2012 before the Bombay High Court at Goa, which was admitted on 23/07/2013 and disposed of on the same day.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 21
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