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Structured Summary of the Opinion

Factual and Procedural Background

The plaintiffs are a firm carrying on business at Calcutta and Purulia. The defendants are a firm of merchants and commission agents at Bombay who were employed by the plaintiffs as agents for the purchase and sale of piece goods and cotton in the Bombay market. The plaintiffs filed Suit No. 1 of 1919 in the Court of the Subordinate Judge of Purulia on 3 January 1919 for rendition of accounts, return of papers belonging to them and recovery of Rs. 1,100 (or such further amount as may be found due on account being taken and on payment of additional court-fee). The plaint alleges that the defendants agreed to state and settle their accounts and submit all papers to the plaintiffs' firm at Purulia and that the cause of action arose at Purulia.

On 4 May 1919 the defendants filed a suit in the Bombay High Court (on its original side) against the plaintiffs for account and recovery of about Rs. 26,736. The plaintiffs (defendants in the Bombay suit) applied to the Bombay High Court for a stay of that suit until the Purulia suit was decided. The Bombay High Court, on 12 July 1919, ordered a stay of the Bombay suit and all proceedings in that suit until disposal of the Purulia suit.

The defendants in the Purulia suit then applied to the High Court (this Court) for transfer of the Purulia suit to Bombay. They alleged they were unaware of the Purulia suit until the Bombay motion and raised objections to jurisdiction and convenience. The Purulia suit had not yet been tried and the defendants had not filed a written statement when the transfer application was made.

Legal Issues Presented

  1. Whether the cause of action for the suit arose at Purulia within the jurisdiction of the Purulia Court, or at Bombay.
  2. Whether the balance of convenience preponderates in favour of trying the suit at Purulia or at Bombay.

Arguments of the Parties

Defendants' (Petitioners') Arguments

  • Most of the petitioners' witnesses (about 30) are traders and brokers residing and carrying on business at Bombay, beyond the jurisdiction of the Purulia Court; they will not be available for examination at Purulia and would have to be examined by commission, causing great inconvenience and expense and prejudicing the defendants' defence.
  • Both suits (Bombay and Purulia) arise out of the same transaction and relate to the same accounts; the Bombay suit is more comprehensive and covers all issues in the Purulia suit; the Purulia suit was instituted with mala fide intention to delay the Bombay suit.
  • They challenged the competency of the Purulia Court to entertain the suit on the ground that the contract was entered into and moneys were payable at Bombay (i.e., the cause of action did not arise at Purulia).
  • They asserted they were not aware of the suit at Purulia and only learnt of it during the pendency of the Bombay motion; they filed an affidavit disclosing names of some Bombay witnesses and reiterated jurisdictional objections.

Plaintiffs' (Opposite Party) Arguments

  • The plaintiffs would need to call, in addition to documentary evidence, oral witnesses from Purulia and Calcutta.
  • The proprietors of the defendants' firm live and have an office in Calcutta (as supported by correspondence between attorneys dated 10 December 1918 and 13 June 1919), undermining the claim that the cause of action arose only at Bombay.
  • The allegation that the cause of action arose at Bombay is refuted by the plaintiffs.
  • The defendants' firm have some office in Calcutta and were willing to show their account books to the plaintiffs in Calcutta; the plaintiffs themselves reside within the jurisdiction of the Purulia Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sachendra Nath Mitra v. Muhammad Habibullah Authority for refusal of transfer where circumstances similar (issue as to jurisdiction raised and transfer sought simultaneously). Relied on to support the conclusion that the present transfer application was incompetent because the petitioners raised jurisdictional objection while seeking transfer under S.22.
Asharan Boid v. Bhola Nath Authority for refusal of transfer in circumstances similar to the present case. Cited alongside Sachendra Nath Mitra to justify holding the application incompetent.
Abu Bakar Abdul Bahiman & Co. v. Rambux Referenced for a view (attributed to Mr. Sbanyon) that a High Court has no power to determine that a suit shall proceed in a Court subordinate to another High Court (i.e., limitation on High Court power). The Court disagreed with that view and held that under S.22 a High Court can determine in which of the several Courts having jurisdiction the suit shall proceed, and that such an order would be final.
Helliwell v. Hobson Illustrates that even where stronger grounds were alleged a change of venue was refused. Used to show that the existence of strong grounds does not necessarily justify transfer; supported refusal to change venue in the present case.
Harendra Lall Roy v. Sarvamangata Dabee Held that balance of convenience may favour transfer when a defendant's attendance would cause extreme hardship (example: a lady whose evidence was essential and who could not travel without undue hardship). Distinguished on facts: the present case did not present similar hardship; hence that precedent did not justify transfer here.
Askaran Boid v. Bhola Nath Another citation of a case where transfer was refused in circumstances similar to the present case. Referenced to demonstrate consistency of prior refusals to change venue and to support dismissal of the present application.
Abu Bakar Abdul Rahiman & Co. v. Rambux Referenced as a case similar to the present one in which an application for transfer was refused. Used to show prior practice of refusing similar applications and to strengthen the court's conclusion.
Muthia Chetty v. Arunachallam Chetty Another authority where an application for change of venue was refused. Relied upon to demonstrate precedent for refusing transfer under circumstances akin to those before the Court.

Court's Reasoning and Analysis

The Court approached the matter in two stages corresponding to the two principal questions identified in the pleadings.

First, the Court addressed the jurisdictional issue: whether the cause of action arose at Purulia or at Bombay. The Court explained that if the cause of action did not arise at Purulia the suit could not be instituted there and any transfer application under Sections 23 and 24 would be incompetent. The Court held that the question as to the jurisdiction of the Purulia Court was an issue in bar to be determined by the Purulia Court where the suit was filed. The petitioners had not filed a written statement and had instead applied directly to the High Court for transfer. The Court considered that the proper course for the petitioners, if they believed the Purulia Court lacked jurisdiction, was to file a written statement in Purulia and seek a preliminary determination of jurisdiction by that Court, and, if adverse, then apply for transfer.

On this basis the Court concluded that the petitioners could not simultaneously raise an objection as to the jurisdiction of the Purulia Court and seek a transfer under S.22 (which presupposes that the suit may properly have been instituted in one of two or more Courts). Relying on prior decisions of this Court (for example Sachendra Nath Mitra v. Muhammad Habibullah and Asharan Boid v. Bhola Nath), the Court held that the present application was incompetent in this respect.

For completeness and in order to decide the second question, the Court assumed (without deciding) that the Purulia Court had jurisdiction and that the transfer application under S.22 was competent. It then examined the proper statutory route for transfer: S.22 provides the power to determine in which of several Courts having jurisdiction the suit shall proceed; S.23 prescribes to which High Court such an application should be made. The Court noted that S.24 (which expressly empowers a High Court or District Court to transfer or withdraw suits) applies only where the several Courts are subordinate to the same appellate or High Court, and does not apply to cases where the several Courts are subordinate to different High Courts. Nevertheless, the Court held that it could determine, under S.22, which Court should try the suit and disagreed with an argument that the High Court lacked such determinative power (refuting the view attributed to Abu Bakar Abdul Bahiman & Co. v. Rambux).

The Court then considered the balance of convenience. It reviewed the parties' affidavits: the petitioners emphasized the number and location (Bombay) of their witnesses and the difficulty and expense of bringing them to Purulia; the plaintiffs emphasized the presence of witnesses in Purulia and Calcutta, the plaintiffs' own residence within the Purulia jurisdiction, the defendants' proprietors and office in Calcutta, and the ability to inspect account books in Calcutta. The Court observed that while evidence of the defendants' Bombay witnesses could be obtained by commission, the plaintiffs themselves would generally be required to give evidence in Court. It emphasized the plaintiffs' initial right to choose the venue.

The Court compared the facts to relevant authorities (including Helliwell v. Hobson and Harendra Lall Roy v. Sarvamangata Dabee), concluding that the present affidavits did not establish a manifest preponderance of convenience in favour of transfer to Bombay. The Court noted prior refusals to change venue in similar or stronger circumstances and that the stay order of the Bombay High Court (which had stayed the Bombay suit until disposal of the Purulia suit) strengthened the plaintiffs' position. Considering all circumstances, the Court found the balance of convenience did not favour transfer.

Holding and Implications

Core Ruling: The application by the defendants to transfer Suit No. 1 of 1919 from the Court of the Subordinate Judge of Purulia to Bombay is REJECTED.

Consequences and immediate effects:

  • The Purulia suit shall proceed in the Court in which it was instituted.
  • The transfer application is dismissed with costs. The hearing fee of five gold mohurs is directed.

The opinion relied on prior authorities to refuse transfer and to explain the limits of the Court's powers under the Code of Civil Procedure; it does not purport to lay down a new precedent beyond applying established principles to the facts before it. The decision's practical effect is limited to the parties: the defendants' transfer application failed and the suit at Purulia is to proceed.

Disposition: Application rejected with costs; hearing fee five gold mohurs.

    Ram Kumar Sheo Chand Rai v. Tula Ram Nathu Ram

    1. This is an application by the defendants for transfer of Suit No. 1 of 1919 pending in the Court of the Subordinate Judge of Purulia. The circumstances under which this application has been made are as follows:

    The plaintiffs are a firm carrying on business at Calcutta and Purulia. The defendants are also a firm carrying on business as merchants and commission agents at Bombay. The plaintiffs employed the defendants as their agents for the purchase and sale of piece goods and cotton in the Bombay market. The plaintiffs have brought the present suit in the Court of the Subordinate Judge of Purulia against the defendants for rendition of accounts, for returning the papers belonging to them and for recovery of Rs. 1,100 or such further amount as may be found due to them on account being taken and on payment of additional court-fee.

    2. The reason for bringing the suit in Purulia is stated in para. 5 of the plaint, to be that the defendants agreed to state and settle their accounts and submit all papers to the plaintiffs' firm at Purulia and that the cause of action arose at Purulia. The plaint in the present suit at Purulia was filed on 3rd January, 1919.

    3. On 4th May, 1919 the defendants in the present case likewise brought a suit in the Bombay High Court on its original side against the plaintiffs for account and for recovery of Rs. 26,736 odd as the amount due to them from the plaintiffs.

    4. The plaintiffs, who are defendants in the suit at Bombay, applied to the Bombay High Court for stay of that suit until the present suit at Purulia was decided. That application was opposed by the defendants in the present case, and the High Court of Bombay on 12th July, 1919 made an order that the suit and all proceedings in the Bombay Court be stayed until the disposal of the present suit at Purulia.

    5. In the meantime, on 11th July, 1919, the defendants in the Purulia case made an application to this Court, alleging that they were not aware of the suit at Purulia and came to know of it during the pendency of the motion at Bombay.

    6. In support of this application two grounds have been urged in paras. 6 to 8:

    (1) That all the witnesses of the petitioners, about 30 in number, are traders and brokers of Bombay. They reside and carry on their business at Bombay beyond the jurisdiction of the Purulia Court and will not be available for examination at Purulia and will have to be necessarily examined by commission. The defendants, who are residents of Bombay, will be put to great inconvenience and expense and will be seriously prejudiced in their defence in the event of the case being tried at Purulia.

    (2) Both the suits at Bombay and at Purulia arise out of the same transaction and relate to accounts between the parties, the former covering all the issues that will arise in the Purulia suit which has been instituted with the mala fide intention of delaying the disposal of the case at Bombay.

    7. The petitioners also challenge in para. 5 of their petition the competency of the Purulia Court to entertain the present suit, on the ground that the contract between the parties was entered into and the moneys due thereunder were payable at Bombay, where they were employed as agents by the plaintiffs. In other words, it is stated that the cause of action did not arise at Purulia and the suit could not be instituted there.

    8. The petitioners repeated the aforesaid grounds in their sworn affidavit of 11th March, disclosing the names of some of their witnesses at Bombay and stating more definitely and clearly their objection as to the jurisdiction of the Purulia Court to try the suit.

    9. On the other hand, the plaintiffs opposite party have filed counter-affidavits, dated 10th March and 9th April, 1920. In the latter it is stated that it will be necessary for them (the plaintiffs) to adduce, besides documentary evidence oral evidence of witnesses from Purulia, and Calcutta; that the proprietors of the defendants' firm live in Calcutta and have their office in Calcutta, as is shown by the correspondence between the attorneys of the defendants' firm, Messrs Marwangi Kola & Co., Bombay, and the plaintiffs' attorneys, Messrs Pugh & Co., Calcutta, dated 10th December, 1918 and 13th June, 1919. The allegation as to the cause of action having arisen in Bombay is also refuted.

    10. Both the suits relate to accounts between the parties who are at variance with regard to the two important points which arise for consideration in connexion with this application:

    (1) Whether the cause of action for the suit arose at Purulia within the jurisdiction of this Court, or at Bombay.

    (2) Whether the balance of convenience lies in trying the suit at Purulia or at Bombay.

    11. If the first question is decided in favour of the defendants, then the application for transfer would become unnecessary, and unless that question is decided against the plaintiffs and it is held that the case has been properly instituted in the Purulia Court, the application for transfer is incompetent, inasmuch as under Section 22 of the CPC, such an application can only lie

    “where a suit may be instituted in any one of two or more Courts and is instituted in one of such Courts.”

    12. If the cause of action did not arise at Purulia, the suit could not be instituted in that Court and any application under Ss. 23 and 24 would be incompetent. This is an issue in bar and has to be determined by the Purulia Court where the suit has been filed. This issue has not yet been tried and in fact the defendants have not filed their written statement even. Mr. Manuk says that his clients could not delay the filing of this application and await the decision of that issue, inasmuch as an application under S. 22 has to be made

    “at the earliest possible opportunity and in all cases where issues are settled at or before such settlement.”

    13. But in a case of this kind where the defendants contemplated an application for transfer and also thought that the Purulia Court had no jurisdiction to try the case, the proper course to my mind was to file a written statement and to apply to the Purulia Court to try in the first instance, the question as to the jurisdiction of that Court to entertain: the suit and at the same time intimating that, if the decision was against them, they intended to apply for the transfer of the case to the Bombay High Court. It was, to my mind, also open to them to ask this Court to have the issue as to jurisdiction tried by the Purulia Court in the first instance and then to take up this application for transfer in case that issue was decided against them. In any case the petitioners cannot raise an issue as to jurisdiction of the Purulia Court and at the same time apply for transfer of the case under S. 22 of the Code, which contemplates that the suit may be properly instituted in the Purulia Court as well as in some other Court. In this view the present application for transfer is incompetent as was held in cases similar to the present one, Sachendra Nath Mitra v. Muhammad Habibullah(1) and Asharan Boid v. Bhola Nath(2).

    14. In order to decide the second question I shall assume that the case has been properly instituted in the Purulia Court and that the present application for transfer is competent.

    15. The prayer in the application is that the suit in question be transferred to Bombay. I understand from Mr. Manuk that the application is under Ss. 22 and 23 of the Code, although, probably by inadvertence, S. 21 has been mentioned in place of S. 23 in the petition to this Court. S. 22 provides for an application for transfer and empowers the Court, to which such application is made, after considering the objections of the other parties to the suit, to “determine in which of the several Courts having jurisdiction the suit shall proceed.” S. 23 indicates the Court to which an application under S. 22, should be made. Cls. (1) and (2) do not apply to this case as they relate to cases where the several Courts having jurisdiction to try the suit are subordinate to the same appellate Court or to the same High Court. The application of the defendants, therefore, comes under Cl. (3), S. 23, which provides that where the several Courts are subordinate to different High Courts, the application under S. 22 shall be made to the High Court within the local limits of whose jurisdiction the Court in which the suit is brought is situate.

    16. The question is whether this Court can transfer the suit from the Purulia Court to any Court subordinate to the High Court at Bombay. S. 24 of the Code deals with transfer and withdrawal of suits on application having been made under Cls. (1) and (2), S. 23, and does not therefore apply to the present application. By that section express power of transfer has been given to the High Court or the District Court, as the case may be, but for cases which may be instituted in Courts subordinate to different High Courts, no such special provision has been made, so that this Court has no power by any express provision of the Court to transfer a case from the Court subordinate to it to any other Court subordinate to the Bombay High Court, or to the Bombay High Court itself. The Court can only dispose of the present application for transfer in the manner prescribed by S. 22, under which it can only “determine in which of the several Courts having jurisdiction the suit shall proceed.” The power of the Court is therefore limited to the determination as to where the suit shall proceed, at Bombay or at Parulia, assuming that the Courts at both the places have jurisdiction to try it, I do not agree with the view taken by Mr. Sbanyon in Abu Bakar Abdul Bahiman & Co. v. Rambux(3) that a High Court has no such power of determination and that such a determination will in any way create anomaly or difficulty. An order of a High Court under S. 22, that a suit shall proceed in a Court subordinate to another High Court, will be final and it will not be open to another High Court to refuse the suit being tried in the Court subordinate to it having jurisdiction to try it.

    17. The petitioners urge that the suit at Purulia should not proceed inasmuch as the suit in the Bombay High Court is more comprehensive and covers the issues involved in the Purulia Court (vide para. 12 of the petition). But the suit in Bombay has already been stayed by an order of the Bombay High Court until the disposal of the suit at Purulia. The order of the Bombay High Court is final and the Bombay suit therefore cannot proceed. The present suit at Purulia must therefore proceed.

    18. Mr. Manuk however contends that although the suit at Bombay has been stayed and the order cannot be reopened in this Court, he is still entitled to a determination that the present suit should be tried at Bombay. This he will be entitled to only upon showing either that he will not have an impartial trial at Purulia; or that the manifest preponderance convenience in the present case is in favour of the present suit being tried at Bombay. There is no suggestion as to the existence of the former ground in the present case, namely, that there will not be an impartial trial of the suit at Purulia.

    19. Now as to whether there is manifest preponderance of convenience in the present suit being tried at Bombay rather than at Purulia, Mr. Manuk says that on behalf of the petitioners 30 witnesses will have to be examined in the case, all of Bombay and men of great wealth and position, and that it would not be possible to bring them to Purulia and in fact under the law they cannot be compelled to come to Purulia, inasmuch as the place of their residence is beyond the jurisdiction of the Purulia Court. Further it is said that it will cause great inconvenience to bring on record huge account books from Bombay either in the applicants' own possession or in the possession of their witnesses.

    20. Mr. Ashgar, on the other hand asserts that his witnesses live in Calcutta and Purulia, and contends that no such voluminous documents, as has been stated on behalf of the petitioners, will be required in the case. Upon the affidavit in this case filed on behalf of the clients of Mr. Ashgar it appears that the defendants' firm have also some office in Calcutta and that they were willing to show their account books to the plaintiffs in the present case in Calcutta. Whereas the witnesses on behalf of the defendants are said to reside in Bombay the plaintiffs themselves reside within the jurisdiction of the Purulia Court; and whereas the evidence of the witnesses can he had by commission, the evidence of the plaintiffs themselves if they want to examine themselves in the case must necessarily be taken in Court, for parties can seldom examine themselves by commission. While looking to the convenience of the defendants, one cannot overlook the inconvenience of the witnesses on behalf of the plaintiffs or the plaintiffs themselves, particularly when they have in the first instance the right to choose the venue in which they would prosecute their suit.

    21. I am not satisfied upon the affidavit in this case that the balance of convenience preponderates in favour of the defendants. Much stronger grounds than in the present case were alleged in the case of Helliwell v. Hobson(4), and still the Court did not allow the change of venue. No doubt in the case of Harendra Lall Roy v. Sarvamangata Dabee(5) the balance of convenience was held to lie in the Court other than the Court in which the suit was instituted; but the defendant in that case was a lady whose evidence was essential in the case and who, the Court held, could not go to Dinagepur without much inconvenience and expense which she was not able to afford. The circumstances of that case might have been sufficient to entitle the defendant to have his case transferred to Calcutta. But the circumstances of each case differ. The majority of the Judges have in the circumstances more or less similar to those in the present case or even under stronger circumstances declined to change the venue and to deprive the plaintiff of the right to choose his own venue. The facts of this case are similar to those of Askaran Boid v. Bhola Nath, Abu Bakar Abdul Rahiman & Co. v. Rambux and Sachendra Nath Mitra v. Muhammad Habibullah, where applications for transfer similar to the present one were refused: vide also Muthia Chetty v. Arunachallam Chetty(6). The fact that the Bombay High Court has already stayed the suit pending there strengthens the position of the plaintiffs in the present case.

    22. Considering all the circumstances I do not see my way to accede to the request of the defendants-petitioners and dismiss the application and direct that the case at Purulia do proceed.

    23. The application is rejected with costs. Hearing fee five gold mohurs.

    V.S/R.K

    24. Application rejected.

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    Ram Kumar Sheo Chand Rai v. Tula Ram Nathu Ram
    (Apr 30, 1920)