CENTRAL GOVERNMENT EMPLOYEES WELFARE HOUSING ORGANIZATION REP BY ITS CHIEF EXECUTIVE OFFICER Vs. CONSOLIDATED CIVIL CONSTRUCTIONS (I) LTD. REP. BY ITS EXECUTIVE DIRECTOR

JUDGEMENT

(1.) THIS revision filed, under Section 115 of the Civil Procedure Code (CPC), is directed against the order dated 22.06.2005, passed by the learned VII Assistant City Civil Court, Chennai, in O.S.No.1755 of 2004, dismissing the plea of the petitioner to reject the plaint under Order 7, Rule 11, CPC.

(2.) THE first defendant in O.S.No.1755 of 2004, is the revision petitioner and the first respondent herein is the plaintiff. THE second respondent bank is the second defendant in the suit. THE respondent/plaintiff filed the suit against the petitioner for a judgment and decree of permanent injunction restraining the petitioner from invoking the amount secured under the bank guarantee, dated 14.10.2005, from the second defendant bank, except by due process of law. THE case of the respondent/plaintiff is that a tender floated by the petitioner for a turn key Housing Project at Chennai, and the tender conditions were stipulated, by letter dated 02.09.2003. THE respondent/plaintiff participated in the tender and submitted their bid on 14.10.2003 and executed a proforma for bid security in the form of bank guarantee for Rs.10,00,000/- in favour of the petitioner and such bank guarantee was arranged through the second respondent bank, by document dated 14.10.2003, executed at Chennai.

(3.) WITH the above averments, the parties went for trial and issues were settled and proof affidavit was filed by the plaintiff and the Court has also drawn an issue as to whether the suit is maintainable and whether the Court has territorial jurisdiction over the subject matter and these issues were directed to be considered as first among the several issues, which have been framed for consideration. At that stage of the matter, a petition was filed by the petitioner herein under Order 7, Rule 11 CPC, to decide the preliminary issue and to reject the plaint. An affidavit filed in support of the said petition, primarily raising two grounds, that the suit being not filed in the Court within the jurisdiction of which the head office of the petitioner organization is situated, namely at New Delhi, as per clause 37.1.3 of the General Conditions of the contract and as per law laid down by the Hon'ble Supreme Court, the plaint is liable to be rejected. Further, it was stated that the cause of action arose at New Delhi and the parties having agreed to the jurisdiction of the Court at New Delhi, the City Civil Court has no territorial jurisdiction to entertain the suit. Apart from that it was contended that the bank guarantee in question was invoked at 10.50 a.m on 15.04.2004 and it is alleged that the suit was numbered only on afternoon on 15.04.2004 and the relief of injunction as sought for cannot be granted.