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Jurisdiction of Civil Courts and Res Judicata, Cheat Sheet of Law

The general principles governing the jurisdiction of civil courts in india. It covers topics such as the express or implied barring of civil court jurisdiction, the concept of res judicata, and the conditions for the applicability of section 10 of the civil procedure code which deals with the stay of civil suits. The document also touches upon the territorial jurisdiction of civil courts, particularly in cases involving immovable property. Additionally, it explores the principles of forum non conveniens and the enforceability of contractual jurisdiction clauses. The information provided in this document could be useful for students studying civil procedure, property law, and dispute resolution in the context of the indian legal system.

Typology: Cheat Sheet

2019/2020

Uploaded on 04/07/2023

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MAHIMA BALAJI
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CPC Notes
INTRODUCTION AND HISTORY
-While the function of substantive laws is to confer substantive legal rights or status, or define legal duties.
The function of procedural laws are to provide machinery or the manner in which the legal rights or status
and legal duties may be enforced or recognised by a Court of law/tribunal.
-Procedural law is an adjunct to substantive law, and the two are complementary.
-First uniform civil procedure code was enacted in 1859, but was not made applicable to Supreme Courts.
In 1908 the CPC was enacted and amended by two key amendments of 1951 and 1956.
-Certain considerations with which the CPC was forwarded — !
(a) fair trial and principles of natural justice !
(b) effort to expedite the disposal of civil suits and proceedings so justice isn’t delayed!
(c) procedure not to be complicated and ensure fair deal to power sections
-1976 Amendment !
(a) Res Judicata made more effective !
(b) Power to transfer proceedings from one HC to another given to the SC. !
(c) Freedom from attachment of a portion of salary to all salaried employees. !
(d) Provision of giving notice under Section 80 before institution of a suit against the government or a
public officer is made less stringent. !
(e) Restrictions on the right to appeal and recision !
(f) Scope of summary trials widened !
(g) Important relief provisions to poorer persons
-1999 and 2000’s Amendments !
(a) In several matters like summons, written statements, amendment of pleadings, document production,
etc., time limit prescribed. !
(b) Provision for dispute settlement !
(c) Adjournments have been restricted !
(d) Provision of recording evidence by Court Commissioner !
(e) Provision for filing appeal. !
(….)
-The object of the code, as stated in the Preamble, is to consolidate and amend the laws relating to the
procedure of Courts of Civil Judicature.
-Thus it is a consolidated Code collecting all laws relating to procedure to be adopted by civil courts.
Designed to facilitate justice and further its ends.
-While the Code is exhaustive on matters specifically dealt but it, it is not exhaustive on points it does not
specifically deal with. In such matters, the court has the power to act according to principles of justice,
equity and good conscience.
-There must be a harmonious construction between the Orders/Rules and the Sections. In case of conflict,
the latter will prevail.
SCOPE OF CPC — JURISDICTION OF CIVIL COURTS
-Jurisdiction (juris + dicto = I speak by the law)
-It means the power or authority of a court of law to hear and determine a cause or a matter.
-It is the power to entertain, deal with and decide a suit, action, petition or other proceeding. In other
words, jurisdiction is the authority which a court has to decide matters that are litigated before it, or to
take cognisance of matters presented in a formal way for it’s decision.
-If a Court has no inherent jurisdiction, neither acquiescence, waiver nor estoppel can create it. A defect of
jurisdiction strikes at the authority of a court to pass a decree, where a decree passed by a court without
jurisdiction is a coram non judice.
-Conversely, where a court has jurisdiction to decide a dispute, the same cannot be taken away or ousted by
consent by the parties. An agreement to oust absolutely the jurisdiction of the court would be unlawful and
void and against public policy. But if two or more courts have jurisdiction to try the suit, parties may
select a particular forum and exclude the other forums.
-Generally the jurisdiction of a court should be decided on the basis of a case put forward by the plaintiff in
his plaint and not by the defendant in his written statement.
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CPC Notes

INTRODUCTION AND HISTORY

- While the function of substantive laws is to confer substantive legal rights or status, or define legal duties.

The function of procedural laws are to provide machinery or the manner in which the legal rights or status and legal duties may be enforced or recognised by a Court of law/tribunal.

- Procedural law is an adjunct to substantive law, and the two are complementary.

- First uniform civil procedure code was enacted in 1859, but was not made applicable to Supreme Courts.

In 1908 the CPC was enacted and amended by two key amendments of 1951 and 1956.

- Certain considerations with which the CPC was forwarded —

(a) fair trial and principles of natural justice (b) effort to expedite the disposal of civil suits and proceedings so justice isn’t delayed (c) procedure not to be complicated and ensure fair deal to power sections

- 1976 Amendment

(a) Res Judicata made more effective (b) Power to transfer proceedings from one HC to another given to the SC. (c) Freedom from attachment of a portion of salary to all salaried employees. (d) Provision of giving notice under Section 80 before institution of a suit against the government or a public officer is made less stringent. (e) Restrictions on the right to appeal and recision (f) Scope of summary trials widened (g) Important relief provisions to poorer persons

- 1999 and 2000’s Amendments

(a) In several matters like summons, written statements, amendment of pleadings, document production, etc., time limit prescribed. (b) Provision for dispute settlement (c) Adjournments have been restricted (d) Provision of recording evidence by Court Commissioner (e) Provision for filing appeal. (….)

- The object of the code, as stated in the Preamble, is to consolidate and amend the laws relating to the

procedure of Courts of Civil Judicature.

- Thus it is a consolidated Code collecting all laws relating to procedure to be adopted by civil courts.

Designed to facilitate justice and further its ends.

- While the Code is exhaustive on matters specifically dealt but it, it is not exhaustive on points it does not

specifically deal with. In such matters, the court has the power to act according to principles of justice, equity and good conscience.

- There must be a harmonious construction between the Orders/Rules and the Sections. In case of conflict,

the latter will prevail. SCOPE OF CPC — JURISDICTION OF CIVIL COURTS

- Jurisdiction (juris + dicto = I speak by the law)

- It means the power or authority of a court of law to hear and determine a cause or a matter.

- It is the power to entertain, deal with and decide a suit, action, petition or other proceeding. In other

words, jurisdiction is the authority which a court has to decide matters that are litigated before it, or to take cognisance of matters presented in a formal way for it’s decision.

- If a Court has no inherent jurisdiction, neither acquiescence, waiver nor estoppel can create it. A defect of

jurisdiction strikes at the authority of a court to pass a decree, where a decree passed by a court without jurisdiction is a coram non judice.

- Conversely, where a court has jurisdiction to decide a dispute, the same cannot be taken away or ousted by

consent by the parties. An agreement to oust absolutely the jurisdiction of the court would be unlawful and void and against public policy. But if two or more courts have jurisdiction to try the suit, parties may select a particular forum and exclude the other forums.

- Generally the jurisdiction of a court should be decided on the basis of a case put forward by the plaintiff in

his plaint and not by the defendant in his written statement.

  • (^) Jurisdiction of a court, tribunal or authority may depend upon fulfilment of certain conditions or existence of a particular fact. KINDS OF JURISDICTIONS (a) Civil (disputes of a “civil nature” and Criminal (b) Territorial or Local (c) Pecuniary — certain limits. HC and District courts have no limitations. (d) Jurisdiction as to subject matter — e.g., only District/Civil judge can hear matters on divorce and insolvency cases (e) Original and appellate (f) Exclusive and concurrent — exclusive gives sole power to one court or tribunal to try, deal with and decide a case. No other court can render a judgement. (g) General and special — latter is particular and limited causes. (h) Legal and equitable — Former is exercised by Common Law Courts in England; while latter is Courts of Equity. Indian Courts are both. (i) Municipal and foreign — Domestic vs. Foreign country (j) Expounding and expanding —— former is define, clarify and explain jurisdiction; while latter is enlarge or extend jurisdiction. Courts duty to expound, not expand. SUBJECT MATTER OF CPC AND JURISDICTION OF CIVIL COURTS.

Section 9.

  • (^) An enabling provision
  • (^) 2 conditions to be fulfilled for a Civil Court to try a suit: (i) suit must be of civil nature; and (ii) cognisance of such a suit should not have been impliedly barred. SUIT OF A CIVIL NATURE:
  • (^) Civil relates to private rights and remedies of a citizen as distinguished from civil and political rights.While nature relates to certain fundamental qualities
  • (^) ‘Civil nature’ is wider than civil proceedings.
  • (^) Civil nature suits are where the principle question relates to the determination of a civil right and enforcement thereof. Width of civil stretched by ‘nature’
  • (^) Not the status of parties to the suit, but the subject matter COGNISANCE OF SUIT SHOULD NOT BE BARRED, EXPRESSLY OR IMPLIEDLY
  • (^) Expressly barred: Barred by an enactment for the time-being in force. — Such must be by a competent legislature to bar jurisdiction of civil courts with respect to a particular class of suits of a civil nature, provided that it doesn’t contravene constitutional provisions.
  • (^) Impliedly barred: When a suit is barred by general principles of law. — Where a specific remedy is given by a statute, which thus deprives a person who insists upon a remedy of any other form than given by the statute — Where an Act creates an obligation and enforces it’s performance in a specified manner, the performance cannot be enforced in any other manner. — Similarly some suits are barred on the grounds of public policy where they might be injurious to public benefit. PRESUMPTION OF JURISDICTION
  • (^) In dealing whether a civil court’s jurisdiction to entertain a suit is barred or not, presumption should be made in favour of jurisdiction.
  • (^) Exclusion of jurisdiction of a civil court to entertain civil causes should not be inferred unless statute contains provisions to that effect, or lends to a necessary and inevitable implication of that nature. BURDEN OF PROOF
  • (^) Party seeking ousting of jurisdiction of a civil court to establish it.
  • (^) Statute ousting jurisdiction must be strictly construed — words, purpose of enactment, scheme of provisions.

RES SUBJUDICE

Section 10. [Stay of Civil Suits: Res Subjudice ]

  • (^) No Court to proceed with trial of any suit in which matter in issue is directly and substantially in issue in a previously instituted suit between the same parties and the court before the previously instituted suit is pending is competent to grant the relief sought
  • (^) The rule applies to trial of a suit and not the institution. Does not preclude passing of interim orders like injunctions, stay, appointment of receiver, etc. [ Indian Bank vs. Maharashtra State Coop ]. OBJECT OF THE SECTION
  • (^) The rule contained is to prevent Courts of concurrent jurisdiction simultaneous entertaining and adjudicating on two parallel litigations in respect of the same cause of action, same subject matter, and same relief.
  • (^) Object is to confine the plaintiff to one litigations, obviating the possibility of two contradictory verdicts by one and the same court in respect of the same relief.
  • (^) Application is only insofar that the matter is ‘directly and substantially in issue in a previously instituted suit’ — thus the matter in controversy is to be the same. CONDITIONS OR ELEMENTS FOR APPLICABILITY OF SECTION 10
  1. There must be 2 suits — one previously instituted and the other subsequent instituted
  2. Matter in issue in the subsequent suit is ‘directly and substantially’ in issue in the previous suit
  3. Both suits must be in between the same parties or their representatives
  4. Previously instituted suit must be pending in the (a) same Court in which the subsequent suit is brought; (b) or in any other Court in India; (c) or in any Court beyond the limits of India, established or continued by the Central Government or before the Supreme Court.
  5. Court in which the previous suit is instituted must have the jurisdiction to grant the relief claimed in the subsequent suit.
  6. Such parties must be litigating under the same title in both the suits.
  • (^) Essential that the subject-matter in controversy must be the same between the previous and subsequent suit
  • (^) Mere common grounds would not be sufficient
  • (^) Order staying proceedings in the subsequent suit can be made at any stage.
  • (^) Test is to see: if the decision in a previously instituted suit would operate as res judicata in the subsequent suit. If so, the subsequent suit must be stayed.
  • (^) If a suit is pending in a foreign Court, then there is no bar on the power of the Indian court to try a subsequently instituted suit.
  • (^) Note that there is also an inherent power to stay under Section 151, CPC, where the Court can stay a suit to achieve ends of justice — irrespective of where Section 10 of the Code doesn’t strictly apply. CONTRAVENTION *
  • (^) A decree passed in contravention to Section 10 is no a nullity. Therefore cannot be disregarded in execution proceedings.
  • (^) It is only the trial and not the institution of a subsequent suit which is barred.
  • (^) Thus, this is a rule of procedure which can be waived by a party. Hence, if parties waive their right and ask the Court to proceed with the subsequent suit, then cannot afterwards challenge the validity of the subsequent proceedings.

RES JUDICATA

Section 11 [a matter adjudged // a rule of conclusiveness and avoidance of vexatious litigation]

  • (^) Deals with the rule of conclusiveness of a judgement — as to points decided of fact, law, or fact and law, in every subsequent suit between the same parties.
  • (^) When a matter is decided by a competent court, no party can be permitted to reopen it in a subsequent litigation. In the absence of such a rule, there would be no end to litigation.
  • (^) Decided by two parties in one suit/proceeding, and the decision is final. Either because there no appeal was taken to a higher court, or because appeal was dismissed, or o appeal lies.
  • (^) In such a case, neither party will be allowed in a future suit or proceeding between the same parties to canvass the matter again. ACTUAL RES JUDICATA: It means a matter actually resolved by Court, between the parties in earlier suit cannot be reopened through subsequent suit. In-other words an issue has been alleged by one party and either denied or admitted, (expressly or impliedly) by other party in earlier suit, second suit in respect of the same matter can not be filed, and if any is filed, the same would be hit by actual Res Judicata. CONSTRUCTIVE RES JUDICATA: It means a matter, which might and ought to have been made ground of claim or defense in a former suit, but a party ignores it, then that issue shall be deemed to have been a matter directly and substantially in issue in such suit. In other words if a party had an opportunity that he ought to have taken a plea (as a plaintiff or defendant) if he fails to do so, and the matter is decided, the decision will operate as Res-judicata in-respect of all issues, which were taken, and which ought and might have taken/ and second suit would not lie for such issue. OBJECT / 3 MAXIMS OF RES JUDICATA (i) No man should be vexed twice for the same cause (ii) It is in the interest of the State that there should be an end to litigation (iii) A judicial decision must be accepted as correct. RES JUDICATA vs. OTHERS A. RES JUDICATA DIFFERS FROM RES SUB JUDICE
  1. The doctrine of Res Judicata is contained in section (11) of C.P.C, which provides when and how it can apply, while the doctrine of Res Subjudice is contained in section (10) of C.P.C, which provides when and how it can apply.
  2. In Res Judicata the Court shall not try at all a case, which has previously tried, while in Res Subjudice the Court shall not proceed with a case, in-respect of which a suit is already pending.
  3. Res judicata deals with cases, which have already been decided by a Court of competent jurisdiction, but Res Subjudice deals with cases which are pending before the Court of competent jurisdiction.
  4. Res Judicata prohibits second trial of the same dispute between same parties, while Res Subjudice prohibits proceedings of two parallel suits between same parties. B. RES JUDICATA AND LIS PENDENS
  • (^) Lis Pendens is an aspect of the rule of Res Judicata. Where the former is laid down under Section 52, TPA.
  • (^) Where a conflict between the two arises, res judicata will prevail. I.e. when a judgement is duly pronounced by a competent court in regard to the subject matter of the suit in which doctrine of lis pendens applies — the decision would operate as res judicata and would bind not only the parties, but also the transferres pendente lite. C. RES JUDICATA AND WITHDRAWAL OF SUIT.
  • (^) O. 23/Rule I deals with withdrawal of suits. It enacts where P withdraws suit or abandons his claim without leave of the Court, he will be precluded from instituting a fresh suit w.r.t the same cause of action.
  • (^) In res judicata, the matter is heard and finally decided between the parties; in the latter, the P withdraws or abandons his claim before it is adjudicated on merits. D. RES JUDICATA AND ESTOPPEL
  • (^) Res judicata is estoppel by verdict/judgement.

former suit (Expl. I) — Expl. VII is to be read with this condition. II. Former suit must have been a suit between the same parties or between parties under whom they, or any of them claim. — Expl. VI to be read with this condition. III. Such parties must have been litigating under the same title in the former suit. IV. Court which decided the former suit must be a court competent to try the subsequent suit or the suit in which such issue is subsequently raised — Expl. II and VIII to be read with this condition. V. Matter directly and substantially in issue in the subsequent suit must have been heard and decided by the court in the former suit. — Expl. V to be read with this condition. I. Matter directly and substantially in issue in the subsequent suit or issue, must be the same in which it was directly and substantially in issue either actually (Expl. III) or constructively (Expl. IV) in the former suit (Expl. I) — Expl. VII is to be read with this condition. A. General and Meaning

  • ‘Matter in issue’— may be issue of fact, issue of law, or one of mixed law and fact.
  • ‘Matter in issue’ means the rights litigated between the parties. The facts on which such right is claimed, and the law applicable to the determination. B. Directly and substantially in issue, actually (Expl. III)
  • (^) Directly has been used in the sense of being immediately or at once. In contradistinction to ‘collaterally or incidentally.’ Fact cannot be directly in issue if the judgement is about whether the fact exists or does not exist.
  • (^) Substantially means essentially or materially. It is something short of certainly but more than mere suspicion — in effect, though not in express terms.
  • (^) Whether or not a matter is directly and substantially an issue would depend upon whether a decision of such an issue would materially affect the decision of a suit. The question thus is based on the plaint, written statement, issues and judgement. The question should be decided on the facts of each case. C. Matter constructively in issue, actually (Expl. IV)
  • (^) Constructively in issue, if a matter ‘might and ought’ to have been made a ground of defence/attack in former suit.
  • (^) Expl IV is a deeming provision, which lays down that any matter which might and ought to have been made a ground of defence or attack in the former suit, but wasn’t, shall be deemed to have been a matter directly and substantially in issue in such suit.
  • (^) Principle is that where parties had the opportunity. that should have been taken to be the same thing as if the matter had been controverted and decided. A party is bound to bring forward his whole case. > Constructive Res Judicata. Artificial form of res judicata, and provides that if a plea could have been taken and wasn’t, one cannot be permitted to take that plea against the same party in a subsequent proceeding w.r.t the same subject mater. > Might and Ought.
  • (^) If the P or D fails to take up a ground that they ‘might’ and ‘ought’ to have taken, it would be treated as raised and decided.
  • (^) Might presupposes that party affected had knowledge of grounds of attack; while ought compels party to take such ground. They must be read in conjunction.
  • (^) ‘Ought’ depends on the facts of each case. D. Matter collaterally or incidentally in issue
  • (^) Decisions collateral or incidental to the main issues will not operate as res judicata.
  • (^) A collateral or incidental issue means one which is ancillary to the direct and substantive issue. No relied is claimed and yet it is put in issue to enable a court to adjudicate upon the matter which is directly and substantially in issue.
  • (^) A matter is directly and substantially in issue if it is necessary to decide upon it in order to adjudicate the principle issue, and if the judgement is based upon the decision.
  • (^) A matter is collaterally or incidentally in issue if it is necessary to decide it in order to grant relied to the P/ D in a manner that it doesn’t affect the final judgement.
  • (^) Depends on facts of the case— no cut and dried test can be laid. E. ‘Suit’
  • (^) Suit is a proceeding which is commenced by presentation of a plaint.
  • (^) Ordinarily means a civil proceeding instituted by the presentation of a plaint. F. Issue
  • (^) Issues are of 3 kinds — issue of fact, issue of aw and mixed issues of law and fact
  • (^) How far does a decision just based on law operate as res judicata? It has been held that — A pure question of law unrelated to facts which gives rise to a right doesn’t operate as res judicata. Thus when the cause of action is different, or when the law has been altered, or when the decision relates to the jurisdiction of a Court to try readier proceeding, or where the earlier decision declared valid a transaction prohibited by law — it is not res judicata.
  • (^) A pure question of law is the interpretation of stature. II. Former suit must have been a suit between the same parties or between parties under whom they, or any of them claim. — Expl. VI to be read with this condition. A. General and Meaning
  • (^) The second condition relates to the fact that the former suit must have been between the same parties or between the parties under whom they had any claim.
  • (^) A party who has intervened is a party, but not one who is discharged through the suit or dies pending the suit. B. Persons other than parties a) Persons who claim under the parties to the suit — privies. b) Persons not claiming under parties, but representing them. c) Interveners d) Minors e) Strangers — not bound by decree passed between parties to a suit. C. Res judicata between co-defendants
  • (^) There may be res-judicata between co-defendants and co-plaintiffs, (a) There must be a conflict of interest between co-defendants (b) Necessary to decide that conflict in order to give relief to the P (c) The question between co-defendants must have been finally decided (d) Co-defendants were proper parties in the former suit.
  • (^) Eg. Case of a will. A sues B, C and D. While interpreting the will, B, C and D might have competing rivalries. The decision of the Court in interpreting the will operates as res judicata in subsequent suits between any of the D’s against the rest. D. Pro forma Defendant
  • (^) Defendant to a suit against whom no relief is claim is a pro forma defendant.
  • (^) Such a D may be added to a suit merely because his presence is necessary for a complete and final decision.

V. Matter directly and substantially in issue in the subsequent suit must have been heard and decided by the court in the former suit. — Expl. V to be read with this condition. A. General and Scope

  • (^) Final consideration is that the matter directly and substantially in issue in the subsequent suit must have been heard and finally decided by a Court in the former suit.
  • (^) Means a matter upon which the court has exercised it’s judicial mind and has come to the conclusion that one side is right and has pronounced a decision accordingly.
  • (^) A matter can be said to be heard and finally decided notwithstanding that the former suit was disposed — ex parte, by failure to produce evidence, or by a decree on an award, or by oath.
  • (^) Matter on the former suit must have been decided on merits. Thus if the former suit was dismissed for want of jurisdiction, or for lack of P’s appearance, or ground of non-joinder of misjoinder or lack of being properly framed, then it would not operate as res-judicata. B. Necessity of Decision
  • (^) Findings of a court must have been necessary for determination of a suit. If finding is not necessary, it will not operate as res judicata.
  • (^) What operates as res judicata is the ratio of what is fundamental to the decision. It cannot be ramified or expanded by logical extension.
  • (^) Everything that should have the authority of res judicata is, and ought to be, subject to appeal, and reciprocally an appeal is not admissible on any point not having the authority of res judicata. C. Findings
  1. If P’s suit is wholly dismissed: no issue decided against D can operate as res judicata against him in a subsequent suit, for he cannot appeal from a finding on any such issue as the decree is wholly against him.
  2. Suit is decreed — no issue decided against him can operate as res judicata for he cannot appeal form a finding as the decree is wholly in his favour
  3. Appeal against finding — no appeal lies against a mere finding as the Code doesn’t provide for filing of any such appeal. D. Explanation V mainly relates only when the relief claimed is — substantial relief and the Court is bound to grant it.

EXECUTION PROCEEDINGS: EXPLANATION VII General principles of res judicata were held to be applicable even to execution proceedings. DISMISSAL IN LIMINE Application dismissed by one word: ‘dismissed’. Such dismissal in liming without passing a speaking order without reasons will not operate as res judicata in subsequent proceedings. Prima facie, such dismissal would indicate that a court considered contentions and dismissed, but without grounds it is difficult to realise the factors weighed in. EX PARTE DECREE

  • (^) An ex party decree is one passed in absence of the defendant, even though duly served.
  • (^) An ex party decree passed by a competent court on merits will operate as res judicata. Non appearance is immaterial for application of Section 11. WITHDRAWAL OF SUIT Does not operate as res judicata in filing a subsequent suit for the same cause of action. There are no merits discussed if a suit is withdrawn. RES JUDICATA: STATIC SITUATIONS — not to changing circumstances or change in law. ERRONEOUS DECISION
  • (^) An incorrect decision by a court that has jurisdiction is as much binding between the parties as a right one, and may be set aside only in appeals or revisions to higher courts if such is provided by the law.
  • (^) A pure question only of law or jurisdiction does not operate as res judicata. TEST TO SEE IF SUBSEQUENT PROCEEDING IS BARRED BY RES JUDICATA
  • (^) Forum or competence of the Court
  • (^) Parties and their representatives
  • (^) Matters in issue
  • (^) Matters which ought to have been made ground for attack/defence in former suit
  • (^) Final decision. INTERIM ORDERS
  • (^) Doctrine of res judicata applies to different stages of the same suit/proceeding.
  • (^) Interlocutory order decides a controversy in part, such decision would bind the parties and operate as res judicata at all subsequent stages of the suit.

(c) SECTION 20. All suits in cases not covered by previous rules can be filed at the P’s option at the following courts — (a) Where the cause of action, wholly or partly arises (b) Where the defendant resides, or carries on business or personally works for gain (c) Where there are 2 or more defendants, any of them resides or carries on business or personally works for gain, provided that in such case — (i) either the leave of the court is obtained; or (ii) the defendants who do not reside or carry on business or personally work for gain at that place acquiesce in such institution. FORUM SHOPPING SC disapproved and deprecated the practice of litigants crossing a forum which may oblige them by entertaining suits though they have no jurisdiction. SECTION 21. OBJECTION AS TO JURISDICTION

  • (^) Object is to protect honest litigants and to avoid harassment to P’s who have bonafide initiated proceedings which is later found to be wanting in jurisdiction.
  • (^) Objection as to local jurisdiction does not stand on the same footing of a court to try the case. Competence of a court to try a case does to the root of the jurisdiction.
  • (^) Under Section 21(I), no objection as to the place of suing will be allowed unless the following 3 conditions are satisfied, and the conditions must coexist. (a) Objection was taken in the court of first instance (b) It was taken at the earliest possible opportunity and in cases where issues are settled at/before settlement of issues (c) There has been a consequent failure of justice
  • (^) If the D allows the trial court to proceed without raising an objection as to the place of suing and takes the chance of a credit in his favour, he waives the objection and it will not be subsequently permitted to be raised.
  • (^) Whether there has been prejudice or not is a matter to be determined based on the facts of each case. OBJECTION AS TO SUBJECT MATTER Court cannot adjudicate upon a subject-matter which does not fall within it’s province as limited or defined by law. Jurisdiction as to the subject matter is essential and is a condition precedent to the acquisition of authority over parties and the matter. — Section 21 (ss. 3) says the principles apply to execution proceedings also. As per Section 21 — no objection to the place of suing can be taken at an appellate or revisions stage of the proceedings. Section 21A (1976 Amendment) states that no substantive suit can be filed to set aside a decree passed by a Court on an objection as to the place of suing. GENERAL PRINCIPLES
  1. Every suit should be instituted in Court of the lowest grade
  2. Court of a higher grade is not deprived of the jurisdiction to try such suit
  3. Once a suit is properly instituted, the court has power to pass a decree exceeding it’s pecuniary jurisdiction
  4. Suits relating to immovable property should be instituted where the property is situated
  5. Suits relating to movable property/person may be instituted where the wrong is committed/where the defendant resides, business, works for gain,
  6. Other suits see S. 20
  7. Consent can neither confer nor take away jurisdiction of a competent court.
  8. Where 2 or more courts have jurisdiction and parties agree to submit to jurisdiction of one of the courts, it is a valid, legal, binding and enforceable agreement.
  9. No objection as to territorial/pecuniary jurisdiction can be entertained by appellate or revisions court (or executing court) unless see Objections as to Jurisdiction S. 21.
  10. No suit would lie to set aside a decree on objection as to territorial (or pecuniary) jurisdiction of a court.

JURISDICTION INVOLVING A FOREIGN ELEMENT

LIS ALIBI PENDENS

- Based on the principle of comity. This rule is followed primarily in civil law jurisdictions.

- This is triggered “factual basis of the claim and the laws are same with view to obtain the same outcome.”

This is not a formal test, and technical and procedural rules cannot be used to defeat the outcome.

- Section 10 incorporates the rule of lis alibi pendens.

- [Sr.] “Lis alibi pendens is a Latin term that means an action on the same cause of action is pending

elsewhere. When two courts are hearing the same dispute they can reach inconsistent decisions. Res judicata provides that a once a case is determined as final only appeal can rise from the case. No party to the case can commence another case on the same dispute in another court. When a case is pending, no other case on the same issue can be commenced in another court. Lis alibi pendens arises from international comity and it permits a court to refuse to exercise jurisdiction when there is parallel litigation pending in another jurisdiction. However, when a case is filed about materially different issues, documents, and parties, lis alibi pendens can not apply to terminate the proceedings.”

FORUM NON CONVENIENS

- Forum non-conviens is a much wider rule, where the Court considers a host of legal and policy questions

before exercising jurisdiction.

- Forum non-conviens: A Court may refuse to exercise jurisdiction where a more appropriate forum is

available. US host of factors (Gulf Oil v Gilbert 330 US 501)

  1. Location of witness, evidence etc
  2. Whether overwhelming hardship is caused to the defendant
  3. Adequacy of alternative remedy
  4. Expeditious use of judicial resources
  5. Choice of applicable law
  6. Public policy (US public policy should not be outsourced)
  7. Vexatious motive, oppressive litigation
  8. Jurisprudential developments The Indian position :- “whether there is an alternative competent forum.” The desire of FNC Flows from:
  9. Avoid multiplicity of proceedings
  10. Factors like economic strength of the parties
  11. To be applied pursuant to a court which has more natural jurisdiction
  12. Balance of convenience is not the sole criterion — though a material consideration, but not the sole criteria justifying FNC. Notwithstanding the appropriateness of a particular forum, courts in general give primacy to the governing law contractually chosen by the parties, particularly in commercial transactions. Modi Entertainment v. W.S.G. Cricket (AIR 2003 SC 1177)

- Was stated that only in exceptional circumstances, a contractually agreed court (court of choice) can be

declared as a ‘FNC’ through an anti suit injunction by the court of natural jurisdiction.

- This anti suit injunction can be granted by the court to prevent injustice if the scenario is such that it permits

a contracting party to be relieved of the burden of the contract.

- The exceptions include events since the date of the contract which have made it impossible for the party

seeking injunction to litigate the case because the essence of the jurisdiction of the contractually chosen court no longer exists , or the court does not exist at a later point of time or because of force majeure (unforeseen events beyond the control of the parties).

(6) A party to the contract containing jurisdiction clause cannot normally be prevented from approaching the court of choice of the parties as it would amount to aiding breach of the contract; yet when one of the parties to the jurisdiction clause approaches the court of choice in which exclusive or non-exclusive jurisdiction is created, the proceedings in that court cannot per se be treated as vexatious or oppressive nor can the court be said to be forum non-conveniens; and (7) The burden of establishing that the forum of the choice is a forum non-conveniens or the proceedings therein are oppressive or vexatious would be on the party so contending to aver and prove the same.” TABLE RE. JURISDICTION