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2004 (4) TMI 529 - SC - Indian LawsWhether in the facts and circumstances of the present case, it can be inferred that the jurisdiction of all other Courts except Courts in Mumbai is excluded? Held that - Having regard to the fact that the order was placed by the defendant at Bombay, the said order was accepted by the branch office of the plaintiff at Bombay, the advance payment was made by the defendant at Bombay, and as per the plaintiffs case the final payment was to be made at Bombay, there was a clear intention to confine the jurisdiction of the Courts in Bombay to the exclusion of all other Courts. The Court of Additional District Judge, Delhi had, therefore, no territorial jurisdiction to try the suit. In the result, the appeal succeeds and is hereby allowed. The order dated 28.3.1997 of the Additional District Judge, Delhi as affirmed by the order dated 21.12.2001 by the Delhi High Court is set aside. The plaint filed by the respondent herein is ordered to be returned for presentation before the competent Court at Bombay.
Issues involved:
1. Territorial jurisdiction of the Court in a legal proceeding arising from a purchase order. 2. Interpretation of a clause in the purchase order regarding jurisdiction of Courts. 3. Application of Section 20, Order VII Rule 10, and Section 151 of the Civil Procedure Code (CPC) in determining territorial jurisdiction. 4. Effect of the location of the offer, acceptance, and payments on the jurisdiction of the Court. 5. Examination of previous legal precedents regarding jurisdiction clauses in contracts. Detailed Analysis: 1. The case involved a dispute over the territorial jurisdiction of the Court in a legal proceeding arising from a purchase order placed by the appellant with the respondent for the supply of filters. The respondent filed a suit for recovery in the Court of District Judge, Delhi, claiming that the cause of action had arisen in Delhi due to the delivery of goods. The appellant challenged this jurisdictional claim based on a clause in the purchase order stipulating Mumbai as the jurisdiction for legal proceedings. 2. The interpretation of Clause 17 of the purchase order, which stated that any legal proceedings arising from the order shall be subject to the jurisdiction of Courts in Mumbai, was a crucial aspect of the case. The appellant argued that this clause clearly indicated the intention to confine jurisdiction to Mumbai, while the respondent contested this interpretation, claiming that other factors, such as the delivery location, should determine jurisdiction. 3. The application of Section 20, Order VII Rule 10, and Section 151 of the CPC was central to the Court's analysis of the jurisdictional issue. The appellant invoked these provisions to request the return of the plaint for presentation before a Court with the appropriate territorial jurisdiction, emphasizing the contractual clause specifying Mumbai as the jurisdiction for legal disputes. 4. The Court considered the effect of the location of the offer, acceptance, and payments on determining the jurisdiction of the Court. It noted that the purchase order was placed, accepted, and payments were made in Bombay, indicating a significant connection to that jurisdiction despite the delivery of goods in Delhi, as claimed by the respondent. 5. The judgment extensively referred to legal precedents such as Hakam Singh v. Gammon (India) Ltd. and A.B.C. Laminart Pvt. Ltd. v. A.P. Agencies to analyze the validity and enforceability of jurisdiction clauses in contracts. These precedents highlighted the importance of clear and unambiguous language in jurisdiction clauses and the need to consider all relevant factors in determining the appropriate forum for legal proceedings. In conclusion, the Supreme Court allowed the appeal, setting aside the previous orders and directing the return of the plaint for presentation before the competent Court in Bombay, emphasizing the significance of the contractual clause and the overall circumstances surrounding the transaction in determining territorial jurisdiction.
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