K SANKARANARAYANA PILLAI Vs. MYSORE FERTILISER COMPANY

JUDGEMENT

(1.) The respondent-Company appointed the revision petitioner as its advocate for conducting its cases in the different courts in Alleppey. It has instituted the present suit against its former advocate for recovery of amounts that may be found due to it on rendition of accounts by him of all sums paid by it to him, as also of all sums realised by him on its behalf and of the amounts spent by him on its behalf. He resides and carries on his profession in Alleppey. The respondent-Company instituted this suit in the Munsiff's Court, Palghat within the jurisdiction of which Court it has a branch office. The revision petitioner questioned that Court's jurisdiction to try the suit. That Court held that it has no jurisdiction. On appeal by the respondent-Company the learned District Judge held that the suit was properly instituted and that the Munsiff's Court, Palghat has jurisdiction to entertain the same. The defendant has coma up in revision.

(2.) According to the lower appellate court the defendant's 'accountability to the Palghat branch of the Company is apparent from the correspondence between the parties', and therefore 'part of the cause of action at least had arisen within the limits of the Palghat Munsiff's Court'. The learned District Judge then proceeds to say that 'if any cause of action has arisen at Palghat, by virtue of Explanation II to Section 20 of the Code of Civil Procedure, 1908 the Company shall be deemed to carry on business at Palghat' and that therefore 'the Palghat Munsiff's Court has jurisdiction to try the instant suit.'

(3.) First of all, it has to be pointed out that Explanation II to Section 20 of the Civil P. C., 1908 has no relevance to Clause (c) of that section, whereunder, a suit can be instituted in the court within the local limits of which the cause of action, wholly or in part arises, and it (the Explanation) only enlarges the meaning of the words 'carries on business' occurring in Clauses (a) and (b) of Section 20 where the defendant (not the plaintiff) is a Company. Therefore, the only question, that falls for consideration is as to whether the cause of action for the suit has arisen, wholly or in part, within the local limits of the Munsiff's Court, Palghat.