High Court Kerala High Court

Mrs.Latha S.Menon vs M/S. Southern Refineries Limited on 30 June, 2009

Kerala High Court
Mrs.Latha S.Menon vs M/S. Southern Refineries Limited on 30 June, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

FAO.No. 234 of 2006()


1. MRS.LATHA S.MENON, W/O.A.V.S.MENON,
                      ...  Petitioner

                        Vs



1. M/S. SOUTHERN REFINERIES LIMITED,
                       ...       Respondent

                For Petitioner  :SRI.C.P.MOHAMMED NIAS

                For Respondent  :SRI.MOHAN JACOB GEORGE

The Hon'ble MR. Justice P.R.RAMAN
The Hon'ble MR. Justice P.BHAVADASAN

 Dated :30/06/2009

 O R D E R
                     P.R. RAMAN & P. BHAVADASAN, JJ.
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                              F.A.O. No. 234 of 2006
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                     Dated this the 30th day of June, 2009.

                                        JUDGMENT

Raman, J,

Appellant is the plaintiff in O.S. No.46 of 2000 on the

file of the First Additional Sub Court, Kozhikode. The respondent

is the sole defendant in the suit. The suit is for realization of

money for goods sold and for return of the security. The defendant

contended among other things that the Kozhikode court has no

jurisdiction and the Trivandrum court alone has got exclusive

jurisdiction in the matters arising out of the contract and sought for

an adjudication on the question of jurisdiction as a preliminary

issue by filing I.A. 2618 of 2001. The court held that the

Kozhikode court has no jurisdiction and the Trivandrum court

alone had jurisdiction and directed return of the plaint. Reliance

was placed on clause 23 of the agreement and nothing else. It is

contended by the appellant that the decision on the jurisdictional

issue rendered by the court below is erroneous and clause 23 is

misconstrued.

F.A.O. 234/2006. 2

2. We have heard the parties.

3. Clause 23 of the agreement reads as follows:

“For any dispute that may arise from this

agreement the same shall be subject to Trivandrum

jurisdiction.”

It is stated that while construing a clause ousting jurisdiction, it is

pertinent to see whether there is ouster of jurisdiction of other

courts. If the clause is clear, unambiguous and specific accepted

notions of contract would bind the parties and unless the absence of

ad idem can be shown, the other courts should avoid exercising

jurisdiction. As regards the construction of the ouster clause, if the

words like “alone”, “only”, “exclusive” and the like are used, there

may not be any difficulty. But there may be cases, where such

expressions might not have been used. But still, there may be

scope for application of the maxim expressio unius est exclusio

alterius provided the intention of the parties can be gathered from a

variety of circumstances proved. In other words, what is an

appropriate case will depend upon the facts of each case. In such a

case, mention of one thing may imply exclusion of another. When

F.A.O. 234/2006. 3

jurisdiction is specified in a contract, an intention to exclude all

others from its operation may in such cases be inferred. Therefore,

it has to be properly construed. Admittedly, from the extracted

clause, it can be seen that here is a case where the words like

“alone”, “only” and “exclusive” are absent in the clause.

Therefore, the question is whether this is a case where expression

of one could be said to be the exclusion of another and whether

facts pleaded and proved would justify such an interpretation arise

for consideration. Admittedly, either side did not and could not

adduce any evidence and the court below proceeded to construe and

interpret clause 23 and held that the Kozhikode court has no

jurisdiction. The view as taken by the court below is clearly wrong

and contrary to the settled position. In this regard, we need to refer

only two decisions of the Apex Court. In A.B.C. Laminart Pvt.

Ltd. v. A.P.Agencies, Salem ((1989) 2 SCC 163), it was held that

even in the absence of express exclusionary words in the clause,

maxim expressio unius est exclusio alterius may be applied in

appropriate cases where the clause only specifies one of the two

F.A.O. 234/2006. 4

courts having jurisdiction without specifically excluding

jurisdiction of the other, the court has to examine the facts to see

whether the clause, which specified one of the courts has

jurisdiction have the effect of excluding the other. The same view

is reiterated in the subsequent decision of the Supreme Court

reported in Vijay Shekhar v. Union of India ((2004) 4 SCC 670)

In the result, we set aside the order passed by the court

below and remand the case for considering the issue afresh after

affording an opportunity to adduce evidence to both sides on this

issue and depending upon the finding on the said issue, it will

proceed to deal with the case accordingly. Parties shall appear

before the court below on 27.7.2009.

The appeal is allowed as above.

P.R. Raman,
Judge

P. Bhavadasan,
Judge

sb.