Territorial Jurisdiction under CPC

Territorial Jurisdiction under CPC

1. Introduction

Territorial Jurisdiction refers to the authority of a court to try a case based on the geographical area within which the cause of action arises or where the defendant resides or conducts business.

Under the CPC, for a court to entertain a suit, it must have both jurisdiction over the subject matter (subject matter jurisdiction) and jurisdiction over the territory (territorial jurisdiction).

2. Legal Provisions Governing Territorial Jurisdiction

The primary provisions related to territorial jurisdiction in CPC are found in:

Section 15 to Section 20 of the CPC

Order 1 Rule 10 CPC

3. Key Sections on Territorial Jurisdiction

Section 15 CPC — Suits to be Instituted Where Subject-Matter Situated

In suits related to immovable property, the suit should be instituted where the property is situated.

Section 16 CPC — Suits for Compensation for Wrong to Person or Movable Property

Suit for compensation for wrongs done to person or movable property should be instituted where the wrong was committed.

Section 17 CPC — Suits for Compensation for Wrongful Acts or for Recovery of Movable Property

Suit for compensation for wrongful acts (other than personal injury or movable property) can be instituted where the defendant resides or carries on business or where the cause of action wholly or partly arises.

Section 18 CPC — Suits for Partition, Mortgage, or Foreclosure

Suit related to partition, mortgage, or foreclosure of immovable property should be instituted where the property is situated.

Section 19 CPC — Suits by or Against Government

Specifies where suits involving government may be filed.

Section 20 CPC — Suits by or Against Corporation, Company, or Firm

Provides jurisdiction based on the place of registration, principal office, or where the cause of action arises.

4. Order 1 Rule 10 CPC — Suits Against Several Defendants

If there are multiple defendants residing in different jurisdictions, the suit may be instituted in any court having jurisdiction over any one of the defendants.

5. What is Cause of Action?

The cause of action is a bundle of facts that gives a person the right to seek legal relief.

Territorial jurisdiction is usually linked to where the cause of action arises (fully or partly).

6. Principles of Territorial Jurisdiction

General Rule: Suit must be filed in the court within whose territorial limits the cause of action wholly or partly arises.

Exception: In suits relating to immovable property, the suit must be filed where the property is situated.

When multiple defendants are involved, suit can be filed in any court having jurisdiction over any defendant.

7. Important Case Law

1. Bhardwaj v. State of Punjab, AIR 1954 SC 621

Held: Territorial jurisdiction depends on where the cause of action arises. It is a question of fact and not law.

2. Balvinder Singh v. Parminder Singh, AIR 2001 SC 29

Held: For tort or compensation suits, the place where the tortious act was committed confers territorial jurisdiction.

3. Ranjit Thakur v. Union of India, AIR 1965 SC 845

The Supreme Court held that in suits related to immovable property, territorial jurisdiction lies only where the property is situated.

4. Ashvinbhai Punjabhai Patel v. Union of India, AIR 2010 SC 3047

The court explained the scope of Section 20 CPC in determining jurisdiction against corporations.

8. Examples of Territorial Jurisdiction Application

Type of SuitCourt Having Territorial Jurisdiction
Suit relating to immovable propertyWhere the immovable property is situated
Suit for compensation for personal injuryWhere the injury or tort was committed
Suit for breach of contractWhere the defendant resides or cause of action arises
Suit against multiple defendantsCourt where any defendant resides

9. Importance of Territorial Jurisdiction

Prevents forum shopping.

Ensures convenience to parties and witnesses.

Helps in efficient administration of justice.

Courts lacking territorial jurisdiction will dismiss the suit even if the cause of action is valid.

10. Summary Table: Territorial Jurisdiction

Section/RulePurposeCourt Having Jurisdiction
Section 15 CPCSuits related to immovable propertyCourt where property is situated
Section 16 CPCSuits for compensation for wrong to person/movable propertyCourt where wrong was committed
Section 17 CPCSuits for wrongful acts not covered by Section 16Court where defendant resides/business or cause of action arises
Section 18 CPCPartition, mortgage suitsCourt where immovable property situated
Section 20 CPCSuits by or against companies or firmsPlace of registration or principal office or cause of action arises
Order 1 Rule 10Suits against multiple defendantsCourt where any defendant resides

11. Conclusion

Territorial jurisdiction under the CPC is crucial for determining which court can hear a suit based on geographical considerations related to the cause of action or defendant’s residence. It promotes fairness and convenience and avoids parallel proceedings.

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