The plaintiff is resident of Faridabad and filed a suit for declaration against the defendant, a resident of Gurgaon, in District Courts... The defendant contested in the suit that the Gurgaon Courts have no jurisdiction.. How will you decide?....

Question: The plaintiff is resident of Faridabad and filed a suit for declaration against the defendant, a resident of Gurgaon, in District Courts, Gurgaon that he has half share in a house situated in Ghaziabad (U.P.) and a sum of 1 Lakh are lying deposited in SBI, Gurgaon. The defendant got wrongly executed the house in his name and is also not admitting the claim in the amount lying in the bank. The defendant contested in the suit that the Gurgaon Courts have no jurisdiction to hear the case. How will you decide? Give reasons. [JJS 2018]

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Answer

In the given case, the plaintiff, a resident of Faridabad, has filed a suit for declaration against the defendant, a resident of Gurgaon, in the District Courts of Gurgaon. The suit concerns the issue of jurisdiction about Plaintiff’s claim for:

a) half share in a house situated in Ghaziabad (U.P.) and

b) a sum of 1 Lakh deposited in SBI, Gurgaon.

To decide the jurisdiction where the suit will lie, it is essential to analyse the principles of territorial jurisdiction, and the place of cause of action, in light of Section 20 of the Civil Procedure Code (CPC).

According to Section 20 of the CPC, a suit can be instituted in a court within the local limits of whose jurisdiction:

a) The defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or

b) Any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or

c) The cause of action, wholly or in part, arises.

As far as the Territorial Jurisdiction of the suit is concerned, it may be noted that the suit property is located in Ghaziabad, Uttar Pradesh. As per principles of territorial jurisdiction, the courts in Ghaziabad would typically have jurisdiction over disputes concerning immovable property situated within their territorial limits. But on the other hand, a sum of 1 Lakh is deposited in a bank in Gurgaon so Gurgaon courts have jurisdiction over disputes related to the bank deposit as part of the cause of action has arisen there. This also suggests that the cause of action arises from two interconnected claims: the ownership dispute over the suit property and the monetary claim in SBI bank.

The Residence of the Defendant is another factor as he resides in Gurgaon, which provides the Gurgaon courts with personal jurisdiction over the defendant. This means the defendant can be summoned and required to appear in the courts of Gurgaon.

In light of the provision under CPC and facts provided in the proposition, it can be settled that the District Courts in Gurgaon shall have the jurisdiction to hear the suit filed by the Plaintiff. The reason is that there are interconnected claims of the plaintiff, wherein the dispute over the suit property lies with Ghaziabad but the financial claim and residence of the Defendant is in Gurgaon. To prevent the multiplicity of proceedings, the plaintiff is advised to approach the courts of Gurgaon to exercise jurisdiction over the entire suit.