PATTNAIK INDUSTRIES PVT LTD Vs. KALINGA IRON WORKS

JUDGEMENT

(1.) The question posed for decision in this case is if a party can be relieved of an agreement that a dispute arising between him and the other contracting party shall be tried in one of the Courts where two or more Courts under the Civil P. C. have jurisdiction to try the suit or proceeding ?

(2.) The facts leading to the present dispute in nutshell are as follows : The petitioner is a private limited company dealing in manufacture of Cast Iron articles. Opposite party No. 1 is a Government of Orissa Undertaking being a unit of Industrial Development Corporation of Orissa, opposite party No. 2. The petitioner entered into a contract with opposite party No. 1 for purchase of scrap. The petitioner has alleged that he deposited the security money. It appointed labourers for collection of materials and other staff for supervision thereof. It received a letter from opposite party No. 1 on 3-1-75 for payment of certain amount owed to opposite party No. 1 and to one Ferro Chrome Project. The petitioner was intimated that unless the amount was deposited lifting of the scrap would not be permitted. Despite protest, the petitioner was not allowed to lift the materials. On 27-1-75 it received a letter that fox non-payment of the outstanding dues the contract was cancelled. So, it fifed Money Suit No. 600 of 1977 in the Court of the Subordinate Judge, Bhubaneswar, claiming damages of a sum of Rs. 67,569.43. The opposite parties besides other defences raised the question of jurisdiction of the Court to entertain the suit. The opposite parties relied upon Clause 5 (f) of the terms and conditions. Clause 5 (f) of Ext. B, the Tender Call Notice, is the same as Clause 12 in the letter of acceptance, Ext. A.

(3.) The question of jurisdiction was taken as a preliminary issue and the Court relying upon the condition stipulating that in case of dispute the "Court at Keonjhar shall have jurisdiction to entertain the suit or proceeding" directed return of the plaint for presentation in the appropriate Court.