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Jurisdiction of Courts as to filing of Suits


1.    The significance of concept of Jurisdiction is fundamental to the existence of our operational Universe, our The Earth, the moons and various millions and billions of Planets, who move within their specified Orbit, i.e. to say, they move / rotate strictly within their “Jurisdiction”.

2.    In legal parlance, Jurisdiction ordinarily signifies the competence of a particular court/ tribunal to adjudicate dispute presented before it; it means the authority of a court to inquire into the facts, apply the applicable law, administer the justice by means of law, and pronounce the judgment and to carry out its execution.

3.    However, the concept of jurisdiction is not confined in its application to Courts, but can safely be applied to every Statutory or Constitutional body, to every Public servant / instrumentality of the State, the State as contemplated under Article 12 of the Constitution.

4.    There are three kinds of jurisdiction of courts, viz, pecuniary, territorial and jurisdiction as to subject matter.

5.    The parties while entering into contractual / business relationship, may ascertain the place, where the Courts / Arbitration shall have the jurisdiction to adjudicate upon the disputes that may arise in the future or may be in the present, with the rider, that the place of jurisdiction of the Court so agreed, must have otherwise the jurisdiction to adjudicate upon the parties before it, independent of their contract. No parties by mere their contract confer jurisdiction upon courts, which otherwise do not have.

6.    The errors of Jurisdictional arises for Want of jurisdiction: That the Court passing the impugned Order had no jurisdiction to entertain the subject matter of the dispute / that the Court wrongly assumed the jurisdiction / that the Court usurped the jurisdiction of _____ court; Mistake of jurisdiction: That the condition precedents, for the exercise of jurisdiction, were not complied with; Excess of jurisdiction: That the impugned Order contains such reliefs which the Court passing it, were incompetent to grant; Failure of jurisdiction: That the Hon’ble Court did not exercised the powers vested in it;

7.    In Suits relating to immovable property – for the Recovery / Partition / Sale or redemption in the case of a mortgage of or charge upon / determination of any other right to or interest / compensation for wrong to immovable property, shall be instituted in the Court within the local limits of whose jurisdiction the said immovable property is situate:

8.    In all other cases, the Suit may be instituted, either –

(a)  where defendants actually and voluntarily resides, or carries on business, or personally works for gain; and may also be instituted at place where any one of the Defendant actually and voluntarily resides, or carries on business, or personally works for gain, provided that either leave of the Court is obtained, or, other Defendants submit to the jurisdiction of the Court;

(b)  Where the cause of action, wholly or in part, arises. The arising of “cause of action” at a particular place or at different places, is determined on the basis of “material acts” performed or required to be performed, at particular place or at difference places, under the law or under the contract, express or implied, oral or written, by either of the parties, and that place or those different places, are said to be the places where the cause of action have arose, either wholly or in part.

The aforesaid proposition of “cause of action” would be subject to the agreement between the parties in respect of “Jurisdiction clauses”; or to their dispute resolution mechanism, if any. Nevertheless, the Court must also have the requisite pecuniary and subject matter jurisdiction to entertain and adjudicate upon their dispute.

(c)  However, where cheque, if any, was given in partial or full discharge of liability, the liability which is the subject matter of the Suit; and the said cheque if was dishonoured on presentation, the Suit may be filed at the place where the Plaintiff resides or carries on business, despite there being jurisdiction clause of courts at Defendant place. This is because the cause of action is based on dishonoured negotiable instrument, and not on the basis of the agreement which had the jurisdiction clause of a particular court.

9.    The jurisdiction of the Court also depends upon the “value of Suit”. The valuation of Suit depends upon the nature of relief sought in a particular legal action. And, “joinder of causes of action” may have significant aspect as to pecuniary jurisdiction of the Court. Like for example, assume that a person has unpaid 10 Invoices of Rs.10.00 Lac each, aggregating Rs.1.00 Crore which are to be recovered by way of filing a Suit. It may be noted that each invoice gives an independent cause of action to the concerned party; and therefore, a common Suit for the recovery of Rs.1.00 Crore comprising 10 Invoices may be filed in the [Bombay High Court], or to 10 Suits of Rs.10.00 Lacs may be filed in the [City Civil Court, at Bombay].

10.  Section 15 of CPC, 1908 provides in which Court the suits to be instituted, and says that every suit shall be instituted in the Court of the lowest grade competent to try it.

11.  Section 19 of CPC, 1908 provides for Suits for compensation for wrongs to person or movable properties and provides that where a suit is for compensation for wrong done to the person or to movable property, if the wrong was done within the local limits of the jurisdiction of one Court and the defendant resides, or carries on business, or personally works for gain, within the local limits of the jurisdiction of another Court, the suit may be instituted at the option of the plaintiff in either of the said Courts.

12.  Section 9 of CPC, 1908 provides that Civil Court would have jurisdiction to try all suits of a civil nature, excepting suits of which their cognizance is either expressly or impliedly barred.

13.  Constitution of Commercial Courts / Divisions: In order to ensure speedy disposal of disputes which arises from commercial transactions involving high value, the Parliament of India has come out with a unique legislation namely, The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015; wherein Commercial Courts / Divisions are to be constituted in the existing district Courts and in High Courts; and wherein disputes arising from specified commercial dealings involving claim of Rs.1.00 Crore or above would be adjudicated by these newly constituted commercial Courts / Divisions.

The broad framework of this newly constituted jurisdiction may thus be summarized to say that, certain disputes of commercial nature, involving claim of Rs.1.00 Crore or above, would be adjudicated under this jurisdiction. The commercial disputes with the State Govts / Central Govts / any other instrumentality of the State are also included in this regime.

Further, a commercial dispute (a) involving the recovery of immovable property; or (b) involving the realization of Monies out of immovable property which were given as security; or (c) involving any other relief pertaining to immovable property, may still be considered as a “commercial dispute”, and may be adjudicated under this special jurisdiction.

Further, these newly constituted Commercial Courts / Division would also have the jurisdiction to adjudicate upon Arbitration Applications which arises in the backdrop of Arbitration proceedings, but of course the Arbitration proceedings must be relating to commercial dispute and involves a claim of Rs.1.00 Crore or above.

Sandeep Jalan
Advocate


Legal issues !!
If you are facing any of these issues like (a) Recovery of Moneys (b) Immovable property disputes (c) grievances against Municipalities & Govts., including challenge to legitimacy of laws etc. (d) grievances against illegalities and highhandedness of Police like illegal arrests, refusal to register FIR, deliberately flawed investigations, etc (e) False FIRs (f) False Claims (g) False evidences (h) Grievances against Judges (i) Illegal or perverse Orders of the Courts / Tribunals, among others.
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