Diamond & Gem Development Corporation Limited v. Morex Petrochem Private Limited
2013-03-01
R.M.SAVANT
body2013
DigiLaw.ai
Judgment 1. The Revisionary Jurisdiction of this Court under Section 115 of the Code of Civil Procedure is invoked against the order dated 09/05/2012 passed by the learned Judge, City Civil Court, Dindoshi, Mumbai by which order the learned Judge has decided the preliminary issue and has come to a conclusion that the said Court would have jurisdiction. 2. The facts necessary to be cited for adjudication of the above Civil Revision Application can in brief be stated thus:- Applicant herein is the original Defendant No.1 whereas the Respondent No.1 herein is the original Plaintiff in the Short Cause Suit No.818 of 2011. Respondent No.2 herein is the original Defendant No.2 in the said Suit. The said suit has been filed inter alia for the following substantive reliefs. “(a) that it be declared that the Defendant No.1 have no right to implement any such exit policy contrary to the terms of the Agreement being the Agreement dated 21st July 2005 in respect of reassignment of the rights in respect of the property purchased under the said Agreement to any third party by giving retrospective effect to the so-called new exit policy in any manner whatsoever; (b) that this Hon'ble Court be pleased to pass a permanent order and injunction restraining the Defendant No.1 and/or persons claiming through Defendant No.1 from in any manner implementing any such exit policy framed after the Agreement being the Agreement dated 21st July 2005 by giving a retrospective effect in any manner whatsoever.” The parties would be referred to as per their status in the said Suit. The Defendant No.1 was leased out a plot of land bearing No.44 situated at Surat Special Economic Zone, Sachin, Tal. Choryasi, Dist. Surat (SurSEZ). The said lease was for a period of 99 years. The Defendant No.1 granted a sub-lease in favour of the Plaintiff, which document was executed on 21st July 2005 on the terms and conditions mentioned in the said document. The plot in question is governed by the policy framed by the Central Government which is amended from time to time as per the Central Government Rules. The sublease which was executed in favour of the Plaintiff was in terms of the extant policy of the Central Government at the relevant time. A dispute between the parties arose in respect of the exit policy applicable.
The sublease which was executed in favour of the Plaintiff was in terms of the extant policy of the Central Government at the relevant time. A dispute between the parties arose in respect of the exit policy applicable. It seems that the Central Government had issued a new exit policy in respect of the surrender of the plots in the SuratSEZ, which was a policy different than the policy when the sub-lease in favour of the Plaintiff was executed. The Plaintiff wanted to take benefit of the said exit policy and had accordingly entered into correspondence with the Defendant No.1. The letter of the Plaintiff communicating to the Defendant No.1 that it desires to transfer the plot in question to a party who has agreed to buy the same at a price of Rs.Fifty Two lacs, was communicated the Defendant No.1 by its letter dated 17/9/2010. By the said letter a cheque of Rs.2,60,000/- towards transfer fees was also enclosed. It seems that correspondence was exchanged between the parties, and ultimately by a letter dated 8/11/2010 the Defendants informed the Plaintiff that the exit of the Plaintiff from the SurSEZ shall be as per the current prevailing exit policy. This has given rise to the filing of the suit in question in which as indicated above the substantive reliefs which are claimed have been adverted to herein above. 3 The Applicant herein i.e. the Defendant No.1 filed its Written Statement and at the outset raised an issue of the territorial jurisdiction of the City Civil Court to entertain the suit in question. It is the case of the Defendant No.1 in the said Written Statement that since the subject matter of the suit i.e. the plot is situated at Surat and the Agreement being executed at Surat, the City Civil Court at Mumbai would have no jurisdiction. The Defendant No.1 therefore prayed that the City Civil Court Mumbai may frame a preliminary issue of its territorial jurisdiction under Section 9A of the Code of Civil Procedure and decide the same. The other defences which have been taken in the Written Statement are not relevant for the purposes of the present Petition. In view of the issue of territorial jurisdiction being raised by the Defendant No.1.
The other defences which have been taken in the Written Statement are not relevant for the purposes of the present Petition. In view of the issue of territorial jurisdiction being raised by the Defendant No.1. The Trial Court framed the following preliminary issue for adjudication:- “Whether this Court has jurisdiction to try and decide the suit?” The Trial Court has by the impugned order dated 9/5/2012 ruled upon its jurisdiction and has held that it would have jurisdiction to try and decide the suit in question. In reaching the said conclusion, the Trial Court observed that since there is a dispute as to where the agreement in question has been executed, the same can be resolved only after the parties lead evidence. The Trial Court further discussed that the suit in question is not in respect of the plot in respect of which the Plaintiff is the sub-lessee, but is in respect of the exit policy as it is the specific case of the Plaintiff that the exit policy which has come into force after the agreement has been executed cannot be applied to the Plaintiff. The Trial Court further held that since it is the case of the Plaintiff that the exit policy is formulated in Bombay, the City Civil Court would have jurisdiction. This is the gist of reasoning of the Trial Court in coming to a conclusion that it has territorial jurisdiction. As indicated above, it is the said order dated 9/5/2012 passed by the learned Judge, City Civil Court, Dindoshi, Mumbai, which is taken exception to by way of the above Civil Revision Application. 4. Heard the learned counsel for the parties. The learned Senior Counsel appearing for the Applicant would contend that thought the Plaintiff is claiming reliefs in respect of the exit policy which is applicable in terms of the agreement, the subject matter of the suit is the plot of land situated at SuratSEZ wherein the Plaintiff is a sub-lessee. It is an undisputed position that it is in respect of the exit from the said plot of land that is an issue in the suit.
It is an undisputed position that it is in respect of the exit from the said plot of land that is an issue in the suit. The learned Senior counsel for the Applicant would seek to rely upon Clause (d) of Section 16 of the Code of Civil Procedure which reads thus:- “(d) for the determination of any other right to or interest in immovable property” The learned Senior Counsel would rely upon the said Clause (d) to contend that since the plot is situated at SuratSEZ and since the issue can be said to be in respect of the exit policy the same would be covered by clause (d) of Section 16 of the Code of Civil Procedure, and it is only a Court at Surat that would have jurisdiction. The learned Senior Counsel in support of the said contention would seek to rely upon the judgment of a learned Single Judge of this Court reported in 2005(6) Bom. C R 164 in the matter of PusaramDashrathlalji Agrawal & ors. v/s. Ratilal Valji Laddha & ors. and the judgment of a learned Single Judge of the Madras High Court reported in 2001(3) CTC 416 in the matter of Tamil Nadu Cements Ltd., Alangulam through its General Manager v/s. Balakrishnan and anr. 5. Per contra, the learned counsel appearing on behalf of the Respondent No.1 would contend that the suit in question as disclosed by the prayers is in respect of an injunction sought by the Plaintiff restraining the Defendants from applying any other exit policy than the policy contemplated under the Agreement. The learned counsel would therefore contend that the suit in question has nothing to do with the plot in respect of which the Plaintiff is a sub-lessee. The learned counsel would contend that clause (d) of Section 16 of the Code of Civil Procedure would have no application as the suit filed by the Plaintiff is not in respect of any other right or interest in a immovable property. The right or interest as contemplated by clause (d) of Section 16 of the Code of Civil Procedure would take its colour from the earlier clauses which concern the various rights which are claimed in respect of immovable property viz recovery of rent, profits, partition etc. However, the suit in question is only as regards the application of the exit policy.
However, the suit in question is only as regards the application of the exit policy. The learned counsel for the Plaintiff would contend that the situs of the property therefore would have no relevance in the facts and circumstances of the case, and therefore, the reliance placed by the learned Senior Counsel appearing on behalf of the Applicant on the judgments cited (supra) is misplaced. 6. Having heard the learned counsel for the parties, I have bestowed my anxious consideration to the rival contentions. The question that is posed in the instant matter is, whether the City Civil Court, Dindoshi, Mumbai would have territorial jurisdiction to try and decide the suit in question. In the said context it would be relevant to note the principal reliefs have been sought in the suit. The principal reliefs as can be seen from prayer clauses (a) and (b) in the suit revolve around the exit policy. The occasion to apply the exit policy has arisen in view of the fact that the Plaintiff wants to exit from the plot in question by selling it to some third party. The Agreement in question between the Plaintiff and the Defendant No.2 contains a clause relating to the exit policy. The Plaintiff has therefore sought a relief of a declaration that the Defendant No.1 has no right to implement any such exit policy contrary to the terms of the Agreement dated 21/7/2005, and has further sought an injunction restraining the Defendant No.1 and/or the persons claiming through Defendant No.1 from in any manner implementing any such exit policy framed after the Agreement 21/7/2005. What the Plaintiff is therefore seeking is the application of the exit policy in terms of the Agreement dated 21/7/2005. Though undoubtedly the plot in respect of which the Plaintiff is a sub-lessee is situated in SuratSEZ. The Plaintiff by way of the suit in question is only claiming the relief as regards the exit policy which is to be applied to it for exiting from the plot in question. Therefore, the said Agreement assumes significance. Since there is a dispute as to the place where the Agreement has been executed, the Trial Court has observed that same can be resolved only after the parties lead evidence.
Therefore, the said Agreement assumes significance. Since there is a dispute as to the place where the Agreement has been executed, the Trial Court has observed that same can be resolved only after the parties lead evidence. Assuming for a moment that the Agreement has been executed at Surat as contended on behalf of the Defendant No.1, the question would be whether the City Civil Court, Dindoshi Mumbai would have jurisdiction. On behalf of the Defendant No.1 reliance is placed on clause (d) of Section 16 of the Code of Civil Procedure so as to contend that the said relief is referable to clause (d) and since the plot in respect of which the Plaintiff is a sub-lessee is situated in Surat, it is only a court in Surat which would have jurisdiction. A reading of Section 16 of the Code of Civil Procedure discloses that the said Section covers the suits where various reliefs which have been mentioned therein in respect of an immovable property are covered. In so far as clause (d) is concerned, the said clause reads as under:- “(d) for the determination of any other right to or interest in immovable property” The said clause therefore has to take its colour from the earlier clauses as well as the subsequent clauses which all concern the reliefs relating to immovable property viz recovery, partition, foreclosure, sale, redemption, compensation, distraint or attachment. Therefore the right which is contemplated by clause (d) has to be a right akin to the rights which have been mentioned by the earlier clauses or the subsequent clauses. In the instant case, as indicated above, the Plaintiff is seeking applicability of a particular exit policy and non-applicability of the subsequent exit policy which is sought to be applied by the Defendant No.1. The said relief therefore in my view, would not be covered by clause (d) as the Plaintiff is not claiming any right in respect of immovable property as it is an undisputed position that the Plaintiff is a sub-lessee. In my view, therefore, the submission made by the learned Senior Counsel appearing for the Applicant herein is mis-founded. If clause (d) does not apply, then obviously Section 16 would not come into play.
In my view, therefore, the submission made by the learned Senior Counsel appearing for the Applicant herein is mis-founded. If clause (d) does not apply, then obviously Section 16 would not come into play. Thereafter Sections 17, 18 and 19 of the Code of Civil Procedure would also not apply as the suit in question is not of the nature which would come within the ambit of the said Sections. We have to therefore go to Section 20 the said Section 20 contemplates the suits which are not covered by Sections 16 to 19. The said Section 20 postulates that the suits other than the suits which are covered by Sections 16 to 19 shall be instituted in a court within the local limits of whose jurisdiction the Defendants, or each of the Defendants actually and voluntarily resides or carries on business or personally works for gain. It is required to be noted that the Defendant No.1 has its office in Bombay from which the letters addressed to the Plaintiff in respect of the exit policy applicable to the Plaintiff have emanated. It is also pertinent to note that the decision in respect of the policy which is applicable appears to be taken in Mumbai, the Defendant No.1 has not denied the correspondence which has been annexed to the plaint. In view of the fact that the Defendant No.1 has its office in Mumbai from which the letters which have given rise to the suit have emanated, the suit in question would be covered by Section 20 of the Code of Civil Procedure since the Defendant No.1 has its office in Mumbai. The Trial Court therefore has rightly observed that since the Defendant No.1 has its office in Mumbai, the City Civil Court, Mumbai would have jurisdiction. In my view, therefore, assuming that the Agreement has been executed in Surat, the same would have no effect on the jurisdiction of the City Civil Court, Mumbai to entertain the suit in question. The reliance placed by the learned Senior Counsel for the Applicant on the judgments (supra) is misplaced, as in the facts involved in the cases before the learned Single Judge, the right sought was in respect of the immovable property which was not situated within the jurisdiction of the courts where the suit was filed.
The reliance placed by the learned Senior Counsel for the Applicant on the judgments (supra) is misplaced, as in the facts involved in the cases before the learned Single Judge, the right sought was in respect of the immovable property which was not situated within the jurisdiction of the courts where the suit was filed. However, as indicated above, the instant suit concerns the applicability of a particular exit policy and sticto senso does not apply to any relief sought in respect of the plot of land in question. The order of the Trial Court ruling that it has jurisdiction cannot be faulted with. In that view of the matter no case for exercising the revisionary jurisdiction under Section 115 of the Code of Civil Procedure is made out. The above Civil Revision Application is accordingly dismissed.