Code of Civil Procedure, 1908 | S. 20

S. 20. Other suits to be instituted where defendants reside or cause of action arises.- Subject to the limitations aforesaid, every suit shall be instituted in 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 work for gain, as aforesaid, acquiesce in such institution; or

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

[* * * *]

[Explanation].—A corporation shall be deemed to carry on business at its sole or principal office in India or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place.

NOTES

* Territorial jurisdiction – textile milss situate at Bombay – order for purchase of cloth placed by party having business at Calcutta – supply of cloth was to be made ex-factory at Bombay – writ petition by purchaser-petitioner against mills maintaible at Bombay – petitioner carries business at Calcutta or reply by mills to correspondence made by its was received at Calcutta is not integral part of cause of action – Calcutta High Court has no jurisdiction to entertain writ petitione.
AIR 2004 SC 1998 A (National Textile Corp. v. Haribox Swalram)

* Jurisidiction – choice of forum by agreement – not invalid – explanations s. 20 – intendment explained.

* Choice of forum by agreement – jurisdiction – suit based on consignment note – note providing that “Court at head office city shall only be the jurisdiction” – at the top of note jurisidiction was also specified to be with court at place “U” – held, it is only the court at place “U” which had jurisdiction to try the suit.
AIR 2004 SC 2154 (New Moga Transport v. United India Insurance)