High Court Kerala High Court

M/S Crompton Greaves Limited vs M/S Navaneeth Hotels Pvt Ltd on 18 January, 2010

Kerala High Court
M/S Crompton Greaves Limited vs M/S Navaneeth Hotels Pvt Ltd on 18 January, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 915 of 2010(O)


1. M/S CROMPTON GREAVES LIMITED,
                      ...  Petitioner

                        Vs



1. M/S NAVANEETH HOTELS PVT LTD.,
                       ...       Respondent

                For Petitioner  :SRI.T.RAMPRASAD UNNI

                For Respondent  : No Appearance

The Hon'ble MR. Justice S.S.SATHEESACHANDRAN

 Dated :18/01/2010

 O R D E R
                                                        C.R.


              S.S.SATHEESACHANDRAN, J.
                  -------------------------------
                W.P.(C).NO.915 OF 2010 ()
                -----------------------------------
        Dated this the 18th day of January, 2010

                       J U D G M E N T

The writ petition is filed seeking mainly the following

reliefs:

i. to call for the records leading to the issue
of Ext.P3 and quash the same by issuance of
a writ of certiorari or any other appropriate
writ, order or direction.

2. Petitioner is the defendant in O.S.No.44 of 2008 on

the file of the Additional Sub Court, North Parur. The above

suit is one for specific performance of an agreement of sale,

and the respondent is the plaintiff. Petitioner/defendant

challenged the jurisdiction of the court to entertain the suit on

the ground that as per the terms of the agreement between

the parties, it has been agreed that only the courts in

WPC.915/10 2

Ernakulam have territorial jurisdiction to adjudicate the

disputes between them. An interlocutory application moved

by the petitioner canvassing the question of jurisdiction

raising contentions as above, after hearing both sides, was

turned down by the learned Sub Judge vide Ext.P3 order.

Propriety and correctness of that order is challenged in the

writ petition by the petitioner/defendant invoking the

supervisory jurisdiction vested with this Court under Article

227 of the Constitution of India.

3. I heard the learned counsel for the petitioner. Having

regard to the submissions made and taking note of the facts

and circumstances presented with reference to Ext.P3 order

challenged in the writ petition, I find no notice to the

respondent is necessary, and hence, it is dispensed with. The

learned counsel for the petitioner/defendant assailed Ext.P3

order passed by the court below contending that when the

parties have specifically agreed to resolve their disputes

arising out of the agreement conferring jurisdiction in the

courts at Ernakulam, the suit could not have been entertained

WPC.915/10 3

in any other court. Inviting my attention to paragraph 7 of the

Ext.P3 order, it is contended that the view expressed by the

court below that the court at North Parur is also coming

within Ernakulam, and so much so, the suit presented before

the court at North Parur is also maintainable, has no basis or

merit as the parties have specifically agreed in their

agreement, which of the courts in Ernakulam shall have

jurisdiction to entertain suits in the event of disputes between

the parties. The learned counsel for the petitioner relied on

Hanil Era Textiles Ltd. v. Puromatic Filters (P) Ltd.

(2004 (4) SCC 671), Harshad Chiman Lal Modi v. DLF

Universal Ltd. and another ( (2005) 7 SCC 791),

Tatanagar Transport Corporation v. Bharat Trading

Agency (1974 KLT 105) and Jatinder Nath v. Chopra

Land Developers (P) Ltd. and another ((2007) 11 SCC

453) to contend that where there are more than one courts

having jurisdiction to entertain the suit, it is open to the

parties to provide for and agree which of the two courts have

jurisdiction, and when that be so, the court which has been

agreed upon by the parties alone has jurisdiction to entertain

WPC.915/10 4

the suit. Among the above decisions, only one of them, that is,

Harshad Chiman Lal Modi v. DLF Universal Ltd. and

another ((2005) 7 SCC 791) deal with the question of

jurisdiction in respect of a suit involving immovable property.

All the other decisions referred to by the counsel, it is seen,

related to agreement between the parties, not involving the

determination of any right or interest in immovable property.

Section 16(d) of the Code of Civil Procedure specifically

mandates that in relation to the determination of any right or

interest to the immovable property, the suit should be

instituted where the subject matter is situate. The apex court

in the decision referred to by the counsel Harshad Chiman

Lal Modi v. DLF Universal Ltd. and another ((2005) 7

SCC 791) has stated in unambiguous terms that a suit for

specific performance of an agreement of sale of an immovable

property seeking relief of execution of sale deed and delivery

of possession has to be filed within the territorial jurisdiction

where the property is situate, and no court other than that has

any power to deal with and decide right or interest in such

property, and such jurisdiction cannot be conferred by

WPC.915/10 5

agreement. The apex court, dilating on that question has

observed thus: “The case on hand relate to specific

performance of a contract and possession of an immovable

property. Section 16 of the CPC deals with such case and

jurisdiction of the competent court where such suit can be

instituted. Under the said provision, a suit can be instituted

where the property is situated. No court other than the court

where the property is situated can entertain such suit. Hence,

even if there is an agreement between the parties to the

contract, it has no effect and cannot be enforced.” When that

be the law settled by the apex court in respect of a suit for

specific performance of an agreement of sale involving an

immovable property, it is futile to contend that the parties

have agreed to provide jurisdiction on a court where the

property covered by the contract is not situated, and that

court, in view of the specific mandate under Section 16(d) of

the CPC, cannot have any jurisdiction even if the parties

agreed to resolve disputes over the agreement of sale in such

a court. Though I do not approve of the observations and

views made by the learned Sub Judge in Ext.P3 order that Sub

WPC.915/10 6

court, North Parur, as being part of Ernakulam, can also be

considered as a competent court under the agreement entered

by the parties, in the given facts of the case and on the

question of law applicable, I find the conclusion formed by the

court below that it has jurisdiction to entertain the suit is

unassailable. In fact, the court below alone, in the territorial

jurisdiction of which the immovable property covered by the

agreement of sale is situate, the specific performance of which

was sought for in the suit, has jurisdiction to entertain the

suit. There is no merit in the writ petition, and it is dismissed.

S.S.SATHEESACHANDRAN
JUDGE

prp