NEZONE BISCUITS PVT. LTD. Vs. K. M. ENTERPRISES

JUDGEMENT

(1.) This appeal under order 41 Rules 1 and 2 of the Code of Civil Procedure is directed against the judgment and decree, dated 22.04.2010, passed by the learned Civil Judge, Sonitpur, Tezpur, in Money Suit No.15 of 2007, whereby the suit has been dismissed with costs holding lack of territorial jurisdiction to try the suit and consequently, there is no cause of action in favour of the plaintiff-appellant. Being aggrieved with the aforesaid judgment and decree the Plaintiff Company-Appellant preferred this appeal.

(2.) Heard Mr. A. Ganguli, learned counsel for the appellant and Mrs. M. Hazarika, learned senior counsel appearing for the defendant-respondent.

(3.) The brief fact of the case is that the Plaintiff Company-Appellant having its registered office at Tezpur in the District of Sonitpur manufactures and sales biscuits and its production and sale office being situated at Tezpur controls the production activities as well as distribution and sale network of the products. The defendant- respondent herein carries on its business at Tinsukia and being one of the dealers of the Plaintiff Company-Appellant, the defendant-respondent used to purchase the products of the Plaintiff Company-Appellant of various biscuits produced by it since long and the defendant- respondent used to furnish purchase orders at Tezpur, through electronic communication means or through representatives and after receipt of the supply orders, the Plaintiff Appellant-Company delivered the consignments at Tinsukia for valuable consideration and bills were used to be prepared and submitted to the defendant-respondent for payment. Such business practice of the Plaintiff Company-Appellant was continuing with the Defendant/Respondent and at the end of the financial year their books of accounts were used to be calculated and closed. According to the Plaintiff Company- Appellant, in the course of business transactions during the period 2004 to 2007, the defendant-respondent was to pay an outstanding amount of Rs. 4,64,028.00/- to the Plaintiff Company- Appellant. The Plaintiff Company-Appellant, after long deliberations with the Defendant/Respondent, issued and served Legal Notice, but did not yield any positive result and ultimately in the compelling situation filed the instant Money Suit before the Court of learned Civil Judge, Sonitpur at Tezpur. The Defendant/Respondent contested the suit amongst others disputing the territorial jurisdiction of Tezpur Court to try the suit.