Question:
Certain legal principles and specific factual situations are provided in each of the following questions. Apply the principles to the given facts and select the most appropriate answer.
LEGAL PRINCIPLE : A suit shall be instituted in the court within whose jurisdiction the cause of action arises; or the defendant actually and voluntarily resides or carries on business, or personally works for gain.
FACTUAL SITUATION : ‘Y’ carries on business in Mumbai. ‘Z’ carries on business in Delhi. ‘Z’ buys goods of ‘Y’ in Mumbai through his agent and request ‘Y’ to deliver them at Delhi. Accordingly, ‘Y’ delivered the goods at Delhi. But he did not get the price of the goods delivered in Delhi. Therefore, he intends to move the Civil Court for recovery of amount of ‘Z’. Which court may ‘Y’ approach ?
DECISION :
Certain legal principles and specific factual situations are provided in each of the following questions. Apply the principles to the given facts and select the most appropriate answer.
LEGAL PRINCIPLE : A suit shall be instituted in the court within whose jurisdiction the cause of action arises; or the defendant actually and voluntarily resides or carries on business, or personally works for gain.
FACTUAL SITUATION : ‘Y’ carries on business in Mumbai. ‘Z’ carries on business in Delhi. ‘Z’ buys goods of ‘Y’ in Mumbai through his agent and request ‘Y’ to deliver them at Delhi. Accordingly, ‘Y’ delivered the goods at Delhi. But he did not get the price of the goods delivered in Delhi. Therefore, he intends to move the Civil Court for recovery of amount of ‘Z’. Which court may ‘Y’ approach ?
DECISION :
LEGAL PRINCIPLE : A suit shall be instituted in the court within whose jurisdiction the cause of action arises; or the defendant actually and voluntarily resides or carries on business, or personally works for gain.
FACTUAL SITUATION : ‘Y’ carries on business in Mumbai. ‘Z’ carries on business in Delhi. ‘Z’ buys goods of ‘Y’ in Mumbai through his agent and request ‘Y’ to deliver them at Delhi. Accordingly, ‘Y’ delivered the goods at Delhi. But he did not get the price of the goods delivered in Delhi. Therefore, he intends to move the Civil Court for recovery of amount of ‘Z’. Which court may ‘Y’ approach ?
DECISION :
Updated On: Aug 5, 2024
- ‘Y’ may institute the suit either at Delhi where ‘Z’ carries on business or at Mumbai where the cause of action arose.
- ‘Y’ may institute the suit at Delhi where ‘Z’ carries on business.
- ‘Y’ may institute the suit simultaneously at Delhi where ‘Z’ carries on business and at Mumbai where the cause of action arose.
- ‘Y’ may institute the suit at Mumbai where the cause of action arose.
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The Correct Option is A
Solution and Explanation
The correct option is (A): ‘Y’ may institute the suit either at Delhi where ‘Z’ carries on business or at Mumbai where the cause of action arose.
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