Question

'A' resides at Delhi, and 'B' at Agra. B borrows Rs.20,000/- from A at Benares and passes a promissory note to A payable at Benares.B fails to repay the loan. A may sue B at

• A. Benares or Agra
• B. Benares only
• C. Agra only
• D. Benares, Agra and Delhi.

Hint:

For territorial jurisdiction under Section 20 CPC, remember the two primary tests: 1. Defendant's Location: Where does the defendant live/work? 2. Cause of Action: Where did the key events of the dispute (e.g., contract formation, breach) happen? The plaintiff's location is generally not a ground for jurisdiction.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This question deals with the rules of territorial jurisdiction of civil courts, as laid down in the Code of Civil Procedure, 1908 (CPC). Specifically, it pertains to the place of suing for a suit based on a contract.
Step 2: Key Formula or Approach:
The relevant provision is Section 20 of the CPC, which deals with "Other suits to be instituted where defendants reside or cause of action arises." According to Section 20, a suit can be filed:
(a) in the court within whose jurisdiction the defendant resides or carries on business, or personally works for gain; or
(b) where any of the defendants reside (if there are multiple defendants), with the leave of the court; or
(c) where the cause of action, wholly or in part, arises.
Step 3: Detailed Explanation:
Let's apply these rules to the given facts:
- Defendant's Residence (Rule (a)): The defendant is 'B', who resides at Agra. Therefore, 'A' can file the suit in Agra.
- Cause of Action (Rule (c)): The "cause of action" refers to the bundle of essential facts that the plaintiff must prove to succeed. In a contract suit, the cause of action arises at:
i. The place where the contract was made. (Here, the loan was taken and the promissory note was passed at Benares).
ii. The place where the contract was to be performed. (Here, the note was payable at Benares).
iii. The place where the breach occurred. (Here, the failure to repay occurred at Benares, where the payment was due).
Since the cause of action wholly arises in Benares, 'A' can also file the suit in Benares.
Combining the two possibilities, 'A' may sue 'B' either at Agra (where the defendant resides) or at Benares (where the cause of action arose).
The plaintiff's residence (Delhi) is irrelevant for determining territorial jurisdiction.