RANA SUGARS LTD. Vs. BHARAT HEAVY ELECTRICALS LTD.

JUDGEMENT

(1.) This civil revision has arisen out of an order of the Principal District Judge, Vellore dated 16.11.2011 made in I.A.No.213/2011 in O.S.No.105/2009 pending on the file of the District Court, Vellore. The defendant in the said suit is the petitioner in the revision filed under Article 227 of the Constitution of India.

(2.) The respondent herein filed the above said suit against the revision petitioner for recovery of a sum of Rs.1,26,16,301/- together with an interest at the rate of 24% per annum for the said amount from the date of suit till realisation and also for cost. The suit amount has been claimed for the materials supplied by the respondent to the revision petitioner. The respondent/plaintiff is having its Boiler Auxiliaries plant at Ranipet, Vellore District. The revision petitioner/defendant is a Registered company having its Principal office at S.C.O.49-50, Sector 8-C, Madhya Marg, Chandigarh-160 018. It also has its branch office at Amristar, Punjab. The order for the supply of Electrostatic Precipitator was placed by the revision petitioner/defendant by Purchaser Order dated 20.03.2006 from the branch office of the revision petitioner at Amristar. The terms and conditions of the purchaser order contains a stipulation in clause 13 to the effect that the disputes, which cannot be settled amicably, shall be subjected to Chandigarh jurisdiction only. However, it is an admitted case that the goods were to be delivered to the agent of the revision petitioner Ex-works Ranipet. The payment was also to be made at Ranipet.

(3.) Contending that the cause of action arose at Ranipet and hence the District Court exercising jurisdiction over Ranipet was the appropriate forum having pecuniary jurisdiction as well as territorial jurisdiction to entertain the suit for the recovery of the suit amount, the respondent herein instituted the above said suit O.S.No.105/2009 on the file of the District Court, Vellore. On receipt of summons, the revision petitioner herein/defendant entered appearance under protest and filed I.A.No.213/2010 under Order VII Rule 10 of the Code of Civil Procedure praying for an order returning the plaint for presentation in proper court. The said prayer was made based on their contention that, by the choice of the parties as per the agreement, they have conferred exclusive jurisdiction on the courts at Chandigarh and thereby the jurisdiction of the District Court at Vellore stood ousted.