MEGHRAJ SANCHIALAL Vs. MALPANI RICE AND OIL MILLS

JUDGEMENT

(1.) This application in revision is by the defendant and arises out of an order of the court below deciding the question of territorial jurisdiction against it.

(2.) The opposite party is resident of a place Murliganj in the district of Saharsa and the petitioner is a firm carrying on business inter alia of commission agency in the town of Khagaria in the district of Begusarai. According to the plaintiff-opposite party's case an oral agreement of agency was entered into between the parties at Murliganj whereby the defendant was to sell the plaintiff's rice at Khagaria, According to this agreement the plaintiff despatched certain consignments of rice to be delivered to the defendant with 'Self' Railway Receipts. Some payments were made but according to the case of the plaintiff, the defendant did not pay a sum of Rs. 3695.69 in spite of repeated demands. Therefore, the above suit was instituted in the Court of the Subordinate Judge, Madhepura which lies in the district of Saharsa. According to the plaintiffs case the Madhepur court had the necessary territorial jurisdiction on two grounds, namely, (1) the contract of agency itself was made at Murliganj and (2) there was an agreement between the parties that payments were to be made at the plaintiff's place. The defendant raised a preliminary issue in the written statement regarding absence of territorial jurisdiction of the Court below and challenged both the above grounds.

(3.) The Additional Subordinate Judge took evidence on this question and on a consideration of the same, came to a definite conclusion that neither the agreement of agency was formed at Murliganj nor there was any agreement between the parties for the payment at the plaintiff's place.