Case Note & Summary
The appellant, M/s Ambarwadikar & Co., a registered firm, filed Special Civil Suit No.18/2012 before the Civil Judge, Senior Division, Latur, seeking declaration and injunction regarding a contract for canal lining work awarded by the respondents (State of Maharashtra and Godawari Marathwada Irrigation Development Corporation). The appellant submitted its tender at Latur, and the contract was executed at Aurangabad. Disputes arose, and the respondents invoked the bank guarantee furnished by the appellant at Latur. The appellant filed the suit at Latur, claiming that part of the cause of action arose there. The respondents filed an application (Exhibit 35) challenging the territorial jurisdiction of the Latur court. The trial court allowed the application and ordered the plaint to be returned for presentation before the proper court at Aurangabad, holding that no part of the cause of action arose at Latur. The appellant appealed against this order. The High Court considered the facts and held that the submission of the tender at Latur and the invocation of the bank guarantee at Latur constituted part of the cause of action, giving the Latur court jurisdiction under Section 20(c) CPC. The court allowed the appeal, set aside the trial court's order, and directed the trial court to proceed with the suit on its merits.
Headnote
A) Civil Procedure - Territorial Jurisdiction - Cause of Action - Section 20(c) Code of Civil Procedure, 1908 - The court held that part of cause of action arose at Latur where the tender was submitted and the bank guarantee was invoked, and thus the Latur court had jurisdiction. The order returning the plaint was set aside. (Paras 1-10) B) Contract Law - Tender - Invocation of Bank Guarantee - The dispute arose from a contract for canal lining work; the appellant submitted tender at Latur and the bank guarantee was invoked at Latur, which constituted part of cause of action. (Paras 2-5) C) Civil Procedure - Order Returning Plaint - Section 20(c) CPC - The trial court erred in holding that no part of cause of action arose at Latur; the High Court reversed the order and directed the trial court to proceed with the suit. (Paras 6-10)
Issue of Consideration
Whether the Civil Judge, Senior Division, Latur had territorial jurisdiction to entertain Special Civil Suit No.18/2012, given that the tender was submitted at Latur and the bank guarantee was invoked at Latur, even though the contract was executed at Aurangabad.
Final Decision
The appeals are allowed. The impugned order dated 7.8.2014 passed by the Civil Judge, Senior Division, Latur below Exhibit 35 in Special Civil Suit No.18/2012 is set aside. The trial court is directed to proceed with the suit on its merits. Civil applications are disposed of.
Law Points
- Territorial jurisdiction
- Cause of action
- Section 20 CPC
- Contractual dispute
- Tender
- Bank guarantee invocation
