{"id":71022,"date":"2002-03-01T00:00:00","date_gmt":"2002-02-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-g-khosla-compressors-ltd-vs-the-u-p-state-electricity-board-on-1-march-2002"},"modified":"2018-07-25T01:25:52","modified_gmt":"2018-07-24T19:55:52","slug":"k-g-khosla-compressors-ltd-vs-the-u-p-state-electricity-board-on-1-march-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-g-khosla-compressors-ltd-vs-the-u-p-state-electricity-board-on-1-march-2002","title":{"rendered":"K.G. Khosla Compressors Ltd. vs The U.P. State Electricity Board on 1 March, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">K.G. Khosla Compressors Ltd. vs The U.P. State Electricity Board on 1 March, 2002<\/div>\n<div class=\"doc_author\">Author: M Sharma<\/div>\n<div class=\"doc_bench\">Bench: M Sharma<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> Mukundakam Sharma, J. <\/p>\n<p> 1. The present suit is instituted by the<br \/>\nplaintiff for recovery for a sum of Rs. 1,16,558.50,<br \/>\nthat is, Rs. 78,776\/- on account of principal and<br \/>\nRs. 37,812.50 on account of interest up to 19th<br \/>\nJanuary, 1986 at 18 per annum along with pendente<br \/>\nlite and future interest and costs.\n<\/p>\n<p> 2. It is stated in the plaint that as<br \/>\nagainst the Purchase Order dated 26th September,<br \/>\n1981, placed by Senior Accounts Officer,<br \/>\nConstruction Accounts Cell, U.P. State Electricity<br \/>\nBoard on the plaintiff Company at its registered<br \/>\noffice at New Delhi, the plaintiff\/Company supplied<br \/>\ncertain goods to the defendant and, therefore, the<br \/>\nplaintiff was entitled to receive the value of the<br \/>\nsaid goods of an amount of Rs, 78,776\/- which was<br \/>\nnot paid by the defendant in spite of notice and,<br \/>\ntherefore, the present suit was instituted seeking<br \/>\nfor recovery of the aforesaid amount.\n<\/p>\n<p> 3. The defendant contested the suit by<br \/>\nfiling a written statement and one of the<br \/>\ncontentions raised in the written  statement was<br \/>\nthat this Court does not have territorial<br \/>\njurisdiction to entertain the present suit as an<br \/>\nappropriate suit should have been filed and<br \/>\ninstituted in the appropriate Civil Court under the<br \/>\njurisdiction of the Allahabad High Court. In view<br \/>\nof the aforesaid pleadings of the parties, an issue<br \/>\nwas framed by this Court while framing issues and<br \/>\nIssue No. 2 reads as follows :-\n<\/p>\n<p>  2. Whether this Court has no<br \/>\njurisdiction to try this suit?\n<\/p>\n<p> Although several other issues were framed<br \/>\nand evidence was led by the parties thereto, it may<br \/>\nnot be necessary for me to discuss and deal with<br \/>\nthe other issues framed in the suit as the present<br \/>\nsuit could be disposed of on the issue of the<br \/>\njurisdiction alone.\n<\/p>\n<p><span class=\"hidden_text\"> 4.  Issues No. 2<\/span><\/p>\n<p> The parties adduced evidence in respect<br \/>\nof the aforesaid issue as well. The plaintiff<br \/>\naltogether examined two witnesses. Shri B.P. Chand<br \/>\nwas examined as PW-1 and Shri O.P. Bhatia was<br \/>\nexamined as PW-2. So far the first witness is<br \/>\nconcerned, namely PW-1, he did not deal with the<br \/>\naspect of jurisdiction at all. PW-1 examined on<br \/>\nbehalf of the plaintiff proved the tender filed by<br \/>\nthe plaintiff with the defendant dated 27th<br \/>\nDecember, 1980 which was &#8216;Ex.PW-2\/1&#8217;. He also<br \/>\nstated that the tender for supply was submitted at<br \/>\nLucknow and that negotiation before the award of<br \/>\nwork was also held at Lucknow. He further stated<br \/>\nthat the plaintiff dispatched the materials before<br \/>\nreceipt of instructions to send it by road. On<br \/>\nbehalf of the defendants also two witnesses were<br \/>\nexamined.\n<\/p>\n<p> 5. Mr. P.K. Srivastava who was the Accounts<br \/>\nOfficer of the defendant\/organisation was examined<br \/>\nas DW-1. He had stated that the Agreement as well<br \/>\nas the purchase order  was placed from Lucknow and<br \/>\nthe goods were to be delivered at OBRA Thermal<br \/>\nUnit, U.P. and that the payment was to be made<br \/>\nfrom construction account OBRA. He  had also stated<br \/>\nthat as per the Agreement, the jurisdiction clause<br \/>\nprovided that in case of dispute jurisdiction would<br \/>\nbe under the High Court of Allahabad. In the<br \/>\ncross-examination, he was asked as to whether a<br \/>\nletter of intent was sent at Delhi to which he<br \/>\ndeposed that he cannot say whether such a letter of<br \/>\nintent was sent at Delhi. He, however, stated that<br \/>\nit is correct that the purchase order was sent at<br \/>\nthe headquarters of the plaintiff\/Company at Delhi.<br \/>\nHe was also asked as to whether in the condition of<br \/>\nsale by the plaintiff, the jurisdiction  clause was<br \/>\nthat of Delhi. In his deposition, he had stated<br \/>\nthat although it is correct that the condition of<br \/>\nsale by the plaintiff and the jurisdiction clause<br \/>\nwas mentioned to be at Delhi, but the same was not<br \/>\naccepted by the defendant.\n<\/p>\n<p> 6. The next witness examined on behalf of<br \/>\nthe defendant was Mr. S.C. Diwedi, who was posted<br \/>\nat the concerned plant as Assistant Accountant. He<br \/>\nalso stated in his cross-examination that the offer<br \/>\nwas received at Lucknow Electricity Board and that<br \/>\nthe purchase order was also issued from Lucknow to<br \/>\nthe registered officer of the plaintiff\/Company at<br \/>\nDelhi and that the purchase order was under the<br \/>\nsignature of Superintending Engineer, Thermal<br \/>\nDesign Circle, Lucknow.\n<\/p>\n<p> 7. In the light of the aforesaid evidence<br \/>\nadduced by the parties, I have looked into the<br \/>\npleadings as also heard the learned counsel<br \/>\nappearing for the parties on the aforesaid issue,<br \/>\ni.e., issue No. 2.\n<\/p>\n<p> 8. The tender offer of the plaintiff is<br \/>\nproved as &#8216;Exb.PW-2\/1&#8217;. The said tender offer was<br \/>\nmade by the plaintiff on 27th December, 1980 and in<br \/>\nthe said tender the plaintiff had included a clause<br \/>\nregarding jurisdiction stating that for all matters<br \/>\nof disputes, jurisdiction would be a Court in<br \/>\nDelhi\/New Delhi. The purchase order of the<br \/>\ndefendant as against the aforesaid tender is also<br \/>\nproved by the parties, being  an admitted document.<br \/>\nThe said purchase order was issued in the month of<br \/>\nAugust, 1981. The said purchase order states that<br \/>\nwith reference to the tender of the plaintiff<br \/>\nfollowed by up to date correspondence exchanged<br \/>\ntherewith, an order is placed for supply of air<br \/>\ncompressors and accessories as per specifications<br \/>\nto the plaintiff making it clear therein that the<br \/>\nsaid purchase order would be further governed by<br \/>\nthe terms and conditions mentioned in the said<br \/>\npurchase order.\n<\/p>\n<p> 9. I have carefully gone through the terms<br \/>\nand conditions governing the said purchase order<br \/>\nand Clause 24 thereof clearly states that the<br \/>\naforesaid purchase order would be further governed<br \/>\nby all the clauses and specifications and general<br \/>\nconditions of Contract UPSEB from &#8216;B&#8217; expect for<br \/>\nthose which were specifically excluded in the said<br \/>\ndocument. Clause 32 of the aforesaid General<br \/>\nConditions of Contract provides that any action<br \/>\ntaken or proceeding initiated on any of the terms<br \/>\nof this Agreement shall be only in the Court of<br \/>\ncompetent jurisdiction under the High Court of<br \/>\nJudicature at Allahabad. The said clause is not an<br \/>\nexcluded clause in the purchase order and,<br \/>\ntherefore,t he said clause is applicable to the<br \/>\ntransaction and the contract involved in the<br \/>\npresent suit. It is thus proved and established<br \/>\nthat the parties were governed by the aforesaid<br \/>\nClause 32 of the General Conditions of Contract.<br \/>\nThe Offer of the plaintiff providing jurisdiction<br \/>\nin Delhi was not accepted and did not form part of<br \/>\nthe Agreement.\n<\/p>\n<p> 10. The plaintiff while making his offer put<br \/>\na condition that the jurisdiction for any dispute<br \/>\nwould be in the Court of Delhi\/New Delhi whereas,<br \/>\nthe said offer was not accepted and in the purchase<br \/>\norder a specific clause in the aforesaid nature was<br \/>\nincorporated which was accepted by the plaintiff<br \/>\nand pursuant to which, according to the plaintiff,<br \/>\nit made the deliveries also. Therefore, the said<br \/>\nClause No. 32 is definitely binding and is the only<br \/>\nrelevant Clause for the purpose of the present<br \/>\ntransaction and the contract in question. The said<br \/>\nclause specifically says that any action taken or<br \/>\nproceeding initiated on any of the terms of the<br \/>\nagreement would be only in the court of competent<br \/>\njurisdiction under the  High Court of Judicature at<br \/>\nAllahabad. The emphasis is on the word only<br \/>\nwhereby the jurisdiction even if it is vested in<br \/>\nany other Court stood excluded and the parties by<br \/>\ntheir mutual consent have vested the jurisdiction<br \/>\nof the action taken on the proceeding initiated in<br \/>\nthe court of competent jurisdiction under the High<br \/>\nCourt of Judicature at Allahabad.\n<\/p>\n<p> 11. In this connection, reference may also be<br \/>\nmade to the decision of the Supreme Court  in the<br \/>\ncase of <a href=\"\/doc\/997135\/\">A.B.C. Laminart Pvt. Ltd. and Anr. v.<br \/>\nA.P. Agencies, Salem<\/a>; . In paragraph 18 of the said judgment,<br \/>\nthe Supreme Court held that where there may be two<br \/>\nor more competent Courts which can entertain a suit<br \/>\nconsequent upon a part of the cause of action<br \/>\nhaving arisen therewithin, if the parties to the<br \/>\ncontract agreed to vest jurisdiction in one such<br \/>\ncourt to try the dispute which might arise as<br \/>\nbetween themselves, the agreement would be valid.<br \/>\nThe ratio of the aforesaid decision is fully<br \/>\napplicable to the facts of the present case.\n<\/p>\n<p> 12. In view of the aforesaid position,<br \/>\ntherefore, the present suit should have been<br \/>\ninstituted in the competent Civil Court having<br \/>\njurisdiction under the High  Court of Judicature at<br \/>\nAllahabad. The suit filed in this court,<br \/>\ntherefore, cannot be entertained in view of lack of<br \/>\nterritorial jurisdiction. Therefore, exercising my<br \/>\npowers under Order VII Rule 10 CPC, I direct that<br \/>\nthe plaint and the documents be returned to the<br \/>\nplaintiff in order to enable the plaintiff to<br \/>\npresent the same in the competent Court in which<br \/>\nthe suit should have been instituted. While<br \/>\nreturning the plaint as also the documents in<br \/>\naccordance with law, the Registry shall follow the<br \/>\nprocedure as prescribed under Order VII Rule 10<br \/>\nCPC.\n<\/p>\n<p> 13. The suit stands disposed of in terms of<br \/>\nthe aforesaid order. There shall be no order as to<br \/>\ncosts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court K.G. Khosla Compressors Ltd. vs The U.P. State Electricity Board on 1 March, 2002 Author: M Sharma Bench: M Sharma JUDGMENT Mukundakam Sharma, J. 1. The present suit is instituted by the plaintiff for recovery for a sum of Rs. 1,16,558.50, that is, Rs. 78,776\/- on account of principal and Rs. 37,812.50 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-71022","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>K.G. Khosla Compressors Ltd. vs The U.P. 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