Suit for recovery of the remainder of the amount | Determine the forum for the institution of the suit where ‘A’ who resides in Patna sells a plot of land situated in Ranchi to `B who resides at Gaya for Rs. 50,000. ‘B’ has paid half the price to ‘A’. ‘A’ now wishes to file a suit.

Question: Suit for recovery of the remainder of the amount | Determine the forum for the institution of the suit where ‘A’ who resides in Patna sells a plot of land situated in Ranchi to 'B who resides at Gaya for Rs. 50,000. ‘B’ has paid half the price to ‘A’. ‘A’ now wishes to file a suit for recovery of the remainder of the amount from the ‘B’. [Bihar C.J. 1986]

Find the answer to the mains question only on Legal Bites. Suit for recovery of the remainder of the amount | [Determine the forum for the institution of the suit where ‘A’ who resides in Patna sells a plot of land situated in Ranchi to 'B who resides at Gaya for Rs. 50,000. ‘B’ has paid half the price to ‘A’. ‘A’ now wishes to file a suit.]

Answer

This problem is based on Section 20 of The Code of Civil Procedure, 1908. Section 20 states that –

Other suits to be instituted where defendants reside or cause of action arises.

Subject to the limitations aforesaid, every suit shall 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 works for gain, as aforesaid, acquiesce in such institution; or

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

The relevant part of Section 20 on which this problem is based speaks when the case does not fall under Section 16 to 19 (the case is covered by section 20) then suit by the plaintiff may be instituted either in a court within the local limits of whose jurisdiction defendant resides/carries on business/personally works for gain or in a court within the local limits of whose jurisdiction cause of action wholly or partly arises.

In the given problem the cause of action arose in Ranchi because the contract of sale was made there and the defendant (‘B’) resides at Gaya. Thus, in view of the provision made in Section 20, ‘A’ may institute the suit for recovery of remainder price either in Ranchi or at Gaya.

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