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Republic Medico Surgical v. Union Of India

Republic Medico Surgical v. Union Of India

(High Court Of Karnataka)

Miscellaneous First Appeal No. 174 Of 1978 | 13-08-1979

(1) THIS appeal is by the plaintiff - Company and ig directed against the order dated 12th September 1975 passed by the Principal Civil Judge, bangalore City on Issue No. 1 in O. S. NO. 150 of 1972 on his file. The plaintiff instituted the suit for recovery of balance of the price towards silt equipages supplied to the 2nd defendant in Bhuvaneshwar. The defendant NO. 2 raised the contention that the Court in Bangalore had nc territorial jurisdiction to entertain the suit. That is the subject matter of issue No. 1 which was set down for heading as preliminary issue.

(2) THE learned Civil Judge appreciating the evidence both oral and documentary adduced before him, came to the conclusion that no part of the causie of action took place in Bangalore and as such, the Court in bangalore has no jurisdiction to entertain the suit and accordingly he orderejd the return of the plaint for presentation before competent court. Aggrieved by the said order, the plaintiff has come up in appeal before this Court.

(3) SECTION 20 C. P. C. no doubt states.

"other suits to be instituted where defendants reside or cause of action arises. Subject to the limitations afosesaid, every suit shall be instituted in a Court within the limits of whose jurisdiction- (a) (b) (c) The cause of action, wholly or in part, ariases. "

(4) IT is the case of the plaintiff-company that the tender was offered for supply of silt equipages to the Executive Engineer, Southern guaging division in Bangalore, but that it was addrefssied to the 2nd defendant. Ultimately his tender was accepted and he supplied the silt eguipagqs for which, according to the plantiff, 2nd defendant was due the balance of price totalling to Rs. 32897. 86 paise. Accordingly, the plaintiff sued the defendatnts in the court of the Principal Civil Judge, Bangalore City in o. S. No. 150 of 1972. The defendants on entering appearance pleaded that the Court of the Principal Civil Judge had no territorial jurisdiction to entertain and try the suit, fqr according to them no part of the cause of action arose within the limits of the Court of the Principal Civil Judge, bangalore.

(5) THE learned Counsel appeairing for the appellants submitted that the learned Civil Judge was not justified in holding that no part of the cause of action took place within the territorial jurisdiction of the Principal civi] Judge, Bangalore City. According to him the offer was made in bangalore and as such, the iearned Civil Judge ought to have held that part of the cause of action arose within the limits of Bangalore City. Hence he prayed that the appeal be allowed.

(6) AS against that, the learned Counsel appearing for the respondents-deleodants submitted that a mere offer cannot be considered asi part of the cause of action and as such the Court in Bangalore City has no jurisdiction to entertain and try the suit.

(7) THE soie point, therefore, that arises for my consideration in this appeal is whether it can be stated that any pant of the cause of action arose within the territorial limits of Bangaiore Civil Court.

(8) THE contract is completed when an offer made is accepted. It is the acceptance that gives rise to the cause of action and not merely an offer. Hence, even though an offer is made from Bangalore, it cannot be said that a Part of the cause of action arises in Bangalore. In a suit the cause cf action will consist of making of the contract and its breach at the place where it is to be performed. Therefore, a suit for breach of contract can, at the option, of the plaintiff be brought either at the place where the contract was made, or at the place where the breach was committed. It can also be said that the place where money is to be paid or goods are to be supplied are also the places where parts of the cause of action arise; but certainly not the place where offer is made.

(9) THE Supreme Court of India in the case of Bhagwandas v. Giri Dharlal and. Co. , AIR 1966 SC 543 [LQ/SC/1965/214] . has laid down thus:

"making of an offer at a place which has been accepted elsewhere does not form part of the cause of action in a suit for damages for breach of the contract. Ordinarily it is the acceptance of offer and intimation of that acceptance which result in a contract. By intimating an offer, when that parties are not in the presence of each other; offerer is deemed to be making the offer continuously till the offer reaches the offered. The offered thereby merely intimates his intention to enter into a contract on the terms of the offer. The offer or cannot impose upon the offered an obligation to accept, nor proclaim that silence of the offered shall be deemed consent. A contract being the result of offer made by one party and acceptance of that very offer by the other, acceptance of the offer and intimation of acceptance by some external manifestation which the law regards ap sufficient is necessary. "

"mere making of an offer does not form part of the cause of action for a suit for damages for breach, of the contract which: has resulted from aceptcptance of the offer. "

(10) THAT being so, it is obvious that there, is no substance in the submission made by the learned counsel for the appellant that the place where the offer is made is the place where part of the cause of action arose. In the instant case, the tender was addressed to the 2nd defendant in bhuvaneshwar. It was accepted by him in Bhuvaneshwar, as can be seen by Ext. D-1. Hence, the cause of action arose at Bhuvaneshwar Further the stipulation, is that the goods shall be delivered at Bhuvaneshwar and money shall be received' at Bhuvaneshwar. Therefore, it is obvious that no part of the cause of action arises in Bangalore City. That being so, I have no compelling grqunds to differ from the finding of the learned Civil Judge. The appeal fails and is dismissed. No costs. The plaintiff is given 3 months time to take back the plaint and present it before the proper Court.

Advocate List
  • For the Appearing Parties B. Ramachandra Rao, C.V. Subba Rao, Advocates.

Bench
  • HON'BLE MR. JUSTICE SABHAHIT
Eq Citations
  • 1979 (2) KARLJ 410
  • AIR 1980 KANT 168
  • LQ/KarHC/1979/210
Head Note

A. Contract and Specific Relief — Breach of contract — Cause of action — Offer made by plaintiff in Bangalore and accepted by defendant in Bhubaneswar — Held, cause of action arises at place of acceptance of offer and not at place of offer — Civil Procedure Code, 1908 — S. 20 — Territorial jurisdiction (Para 8) B. Contract and Specific Relief — Breach of contract — Cause of action — Place of — Held, cause of action arises at place where contract is to be performed — Contract Act, 1872 — S. 30 (Para 8)