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  • S. 4(c), Consolidation Act.
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citation codes
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  • S. 4(c), Consolidation Act.
Smart Summary

Factual and Procedural Background

The plaintiff-opposite party filed a suit against the defendant-petitioners at Patna, alleging that the defendants agreed to sell a property located at Rohni Road, Jasidih in the district of Santhai Parganas. The plaintiff paid Rs. 2,501 as part consideration. Subsequently, on 28-3-1980, the defendants informed the plaintiff at his Patna address that they could not proceed with the sale and returned the Rs. 2,501. The agreement to sell was executed in Calcutta, where the defendants reside and conduct business, while the property is situated outside the jurisdiction of the Patna Court. The plaintiff sought specific performance of the agreement upon payment of the balance amount, possession of the property if the defendants failed to register the sale deed, and a permanent injunction preventing the defendants from transferring the property to others.

The defendants objected to the jurisdiction of the Patna Court, contending that since the land is located at Jasidih and the defendants reside in Calcutta, the Patna Court lacked jurisdiction. The Subordinate Judge, 1st Court, Patna, held that the suit could be filed at Patna under Section 20(c) of the Civil Procedure Code (Civil P.C.) as part of the cause of action arose there.

Legal Issues Presented

  1. Whether the suit filed by the plaintiff-opposite party against the defendant-petitioners at Patna is governed by Section 16(d) or Section 20(c) of the Civil Procedure Code.

Arguments of the Parties

Defendant-Petitioners' Arguments

  • The suit is not merely for specific performance but also for possession of the property, and therefore jurisdiction lies only with the Court where the property is situated or where the defendants reside.
  • Relied on New Mofussil Co. Ltd. v. Sankarlal Narayan Das Mundade, AIR 1941 Bom 247, where a suit for specific performance and possession was held to be under the jurisdiction of the Court where the property was located under Section 16(d) of the Code.
  • Also cited S. Muhammad Eusoof Maricar v. K. Subramanian Chettiar, AIR 1950 Mad 272, where a suit for specific performance and possession was maintainable only in the Court within whose jurisdiction the property was situated.

Plaintiff-Opposite Party's Arguments

  • The suit is purely for specific performance and does not create any interest or charge over the property; hence, it can be filed at Patna where part of the cause of action arose.
  • Relied on Matanhella Brothers v. Shri Mahabir Industries Pvt. Ltd., AIR 1970 Pat 91, relating to movable property, which was argued as not applicable to the present case.
  • Also relied on Sukhilal Sah v. Angrahit Jha, 1979 Pat LJR 544 (AIR 1980 Pat 18), where it was held that a contract for sale of land does not itself create interest or charge on the land, and thus a suit for specific performance does not fall under Section 4(c) of the Consolidation Act.
  • However, acknowledged that where the suit includes a claim for possession, it creates an interest or charge over the land.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
New Mofussil Co. Ltd. v. Sankarlal Narayan Das Mundade, AIR 1941 Bom 247 Jurisdiction under Section 16(d) of Civil P.C. for suits involving specific performance and possession where the property is situated. Supported the argument that jurisdiction lies with the Court where the property is located when possession is also claimed.
S. Muhammad Eusoof Maricar v. K. Subramanian Chettiar, AIR 1950 Mad 272 Suit for specific performance and possession maintainable only in the Court within whose jurisdiction the property is situated. Reinforced the position that possession claims affect jurisdiction and must be tried where the property lies.
Matanhella Brothers v. Shri Mahabir Industries Pvt. Ltd., AIR 1970 Pat 91 Jurisdiction in suits relating to movable property for specific performance. Distinguished as not applicable since the present case involves immovable property.
Sukhilal Sah v. Angrahit Jha, 1979 Pat LJR 544 (AIR 1980 Pat 18) A contract for sale of land does not create interest or charge on land; suit for specific performance does not fall under Section 4(c) of Consolidation Act. Clarified that pure specific performance suits do not affect jurisdiction under Consolidation Act, but possession claims do.

Court's Reasoning and Analysis

The Court analyzed whether the suit is governed by Section 16(d) or Section 20(c) of the Civil Procedure Code. It noted that the plaintiff's suit was not solely for specific performance but also included a prayer for possession of the property. The Court emphasized that where possession is claimed along with specific performance, the suit creates an interest or charge over immovable property. Consequently, such suits fall under Section 16(d), which mandates jurisdiction in the Court where the property is situated or where the defendants reside. The Court found that the property is located at Jasidih, outside the jurisdiction of the Patna Court. Therefore, the Patna Court lacks jurisdiction to try the suit. The Court relied on precedents establishing that possession claims affect jurisdiction and that suits involving possession must be tried where the property lies. The earlier order of the Subordinate Judge holding jurisdiction under Section 20(c) was set aside on this basis.

Holding and Implications

Application allowed. The impugned order dated 2-6-1981 passed by the learned Subordinate Judge is set aside, and the suit is held not maintainable at Patna.

The direct effect of this decision is that the plaintiff must file the suit in a Court having jurisdiction over the location of the property or the residence of the defendants. No broader precedent beyond the jurisdictional ruling is established.

    Ananda Bazar Patrika Ltd. And Others v. Biswanath Prasad Maitin .

    1. The short question for consideration in this case is whether the suit filed by the plaintiff-opposite party against defendant-petitioners at Patna shall be governed by S. 16(d) or S. 20(c) Civil P.C

    2. The plaintiff-opposite party has filed a suit alleging, inter alia, that defendant-petitioners agreed to sell a property situate at Rohni Road, Jasidih in the district of Santhai Parganas and a sum of Rs. 2,501 was paid by the plaintiff as part consideration. On 28-3-1980 the petitioners intimated the plaintiff by a letter at his Patna address that the petitioners were unable to proceed with the proposed sale of the above property and enclosed a draft of Rs. 2,501/- which had been paid by the plaintiff as part consideration. The agreement to sell was executed at Calcutta where the defendant-petitioners reside and conduct their business. The property is situate at Rohni Road, Jasidih in the district of Santhai Parganas outside the jurisdiction of Patna Court. The plaintiff-opposite party has prayed for a decree for specific performance of the agreement to sell the property situate at Jasidih on payment of balance of the consideration money amounting to Rs. 45,874/- to the petitioners. The plaintiff has further prayed that in case the defendants failed to register the sale deed, the sale deed should be registered through the Court and the plaintiff be put in possession of the property so conveyed. They also prayed for permanent injunction restraining the defendants from transferring the said propety to anybody else.

    3. The defendants took an objection in the suit before the Subordinate Judge 1st Court, Patna, regarding jurisdiction. It was contended that the Patna Court had no jurisdiction to try the suit inasmuch as the land was situate at Jasidih outside the jurisdiction of Patna Court and the defendants resided at Calcutta which too was beyond the jurisdiction of the Patna Court. The learned Subordinate Judge held that since part of the cause of action arose at Patna, the suit could be filed at Patna under S. 20(c), Civil P.C

    4. Mr. K.D Chatterji learned counsel appearing on behalf of the petitioners contended that the suit is not merely for specific performance of the contract but is also for possession and, therefore, it can lie only in a Court within whose jurisdiction the property is situate or where the defendants reside. He relied upon the case of New Mofussil Co. Ltd. v. Sankarlal Narayan Das Mundade, AIR 1941 Bom 247. That was also a suit for specific performance and possession. The property was situate at Dhulia and belonged to a limited company with its registered office in Bombay. The vendee resided at Dhulia. Before the transaction was completed the liquidator put an end to the negotiation and sold the factory to some other person. The vendee sued the company and the subsequent purchasers of the factory for specific performance of the agreement and for possession of the factory. It was held that Dhulia Court alone had jurisdiction to try the suit against the company as well as the subsequent purchasers under S. 16(d) of the Code as the suit in the form in which it was brought was not a suit in personam. Mr. Chatterji also relied upon a decision of the Madras High Court in S. Muhammad Eusoof Maricar v. K. Subramanian Chettiar, AIR 1950 Mad 272. In this case a non-resident foreigner entered into a contract for sale of a house which was situate within the jurisdiction of Indian Court, a suit by the vendee for specific performance of that contract and for recovery of possession was held to be maintainable by the Indian Court within whose jurisdiction the property was situate.

    5. Mr. S.C Ghose learned counsel appearing on behalf of the plaintiff-opposite party, on the other hand, submitted that this was purely a suit for specific performance of a contract and did not create any interest in or charge over any property and, therefore, the suit could be filed at Patna where the cause of action arose in part. He relied upon the case of Matanhella Brothers v. Shri Mahabir Industries Pvt. Ltd., AIR 1970 Pat 91. This was not a case relating to land but it related to moveable property and is not applicable to the facts of the present case. He then relied upon a decision of this Court in Sukhilal Sah… v. Angrahit Jha…Opp. Party. Jha, 1979 Pat LJR 544 : (AIR 1980 Pat 18). The question for consideration in that case was whether the suit for specific performance of contract comes within the mischief of S. 4(c), Consolidation Act. It was held that a contract for sale of land did not itself create any interest in or charge on such land, and, therefore, such a suit did not come within the mischief of S. 4(c), Consolidation Act. The Court was considering regarding a pure suit for specific performance of contract. But, where the suit is not merely for specific performance of contract but also for possession it cannot be said that it does not create any interest in or charge over the land.

    6. So far the present case is concerned the plaintiff has specifically prayed not only for specific performance of the contract but also for being put in possession over the property in suit. Such a suit is covered by S. 16(d), Civil P.C and not S. 20(c) of the Code as has been held by the learned Subordinate Judge. The property in the present case is situate at Jasidih which is outside the jurisdiction of Patna Court. The Patna Court, in my view, has obviously no jurisdiction to try such a suit.

    7. The application, therefore, succeeds, the impugned order dated 2-6-1981 passed by the learned subordinate Judge is set aside and the suit is held to be not maintainable at Patna There shall be no order as to costs.

    Application allowed.

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    Comments

    Ananda Bazar Patrika Ltd. And Others v. Biswanath Prasad Maitin .
    (Nov 29, 1984)