‘A’ is a tradesman in Calcutta ‘B’ carries on business in Delhi. ‘B’ by his agent in Calcutta buys goods from ‘A’ and requests `A’ to deliver them to the Eastern Railway in Calcutta. ‘A’ delivers goods accordingly in Calcutta. At which place ‘A’ may sue ‘B’ for the price of goods?

Question: ‘A’ is a tradesman in Calcutta ‘B’ carries on business in Delhi. ‘B’ by his agent in Calcutta buys goods from ‘A’ and requests 'A’ to deliver them to the Eastern Railway in Calcutta. ‘A’ delivers goods accordingly in Calcutta. At which place ‘A’ may sue ‘B’ for the price of goods? [B.C.J. 1991, UP C.J. 1997, WB J.S.1992, Raj. J.S. 1986]

Find the answer to the mains question only on Legal Bites. [‘A’ is a tradesman in Calcutta ‘B’ carries on business in Delhi. ‘B’ by his agent in Calcutta buys goods from ‘A’ and requests 'A’ to deliver them to the Eastern Railway in Calcutta. ‘A’ delivers goods accordingly in Calcutta. At which place ‘A’ may sue ‘B’ for the price of goods?]

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 provides that the case is covered under Section 20. The section states that the suit may be instituted either in a court within the local limits of whose jurisdiction, the cause of action arises or in a court within the local limits of whose jurisdiction defendant resides/carries on business/personally works for gain.

The basis of the suit in the given problem is contract and thus covered by Section 20. In this case, ‘A’ may sue ‘B’ for the price of goods either in the court of Kolkata/Calcutta where the cause of action arose (contract was made) or in the court of Delhi where ‘B’ (defendant) carries on business.

The facts of this problem are based on Illustration (a) of Section 20.

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