Territorial Jurisdiction – Suit by Bhushan Steel & Strips Ltd. (now Tata Steel Limited) – Section 20(c) of the Civil Procedure Code, 1908 – Scope of, Explained.

Held: Section 20(c) of the Civil Procedure Code, 1908 accords dominus litis to the plaintiff to institute a suit within local limits of whose jurisdiction the cause of action, wholly or in part, arises – Situs of the cause of action, even in part, will confer territorial jurisdiction on that court – Two transactions took place – One of sale of goods of galvanised steel in Delhi and one of shipment of goods by Arcadia from Mumbai to Djibouti, Ethiopia – Although Arcadia’s involvement was restricted to the second transaction only, the transactions were intrinsically intertwined – The supply order was placed in Delhi and the payment was to be released in Delhi – However, the sale of goods and then their shipment (from Mumbai to Djibouti) was connected and synchronised – Therefore, the Delhi High Court has jurisdiction under Section 20(c) of the CPC as the cause of action arose in part in Delhi. [Paras 7, 8, 10, 13 and 14]

Code of Civil Procedure, 1908 – Order 1, Rules 3 and 7 – Scope of, Explained.

Held: Order 1 Rule 3 of the CPC provides that the plaintiff may join as a defendant in one suit, all persons against whom, the plaintiff claims the right to relief in respect of, or arising out of, the same act or transaction or series of transactions – The claim viz. the defendants can be joint, several or in the alternative – It is permissible to file one civil suit, even when, separate suits can be brought against such persons, when common questions of law and fact arise – Order 1 Rule 7 of the CPC permits a plaintiff to join two or more defendants in order that the question as to which of the defendants is liable, and to what extent, can be decided in one suit – As per Order 1, Rules 3 and 7 of the CPC, it was permissible for Bhushan Steel to enjoin in a single suit all the defendants, including Arcadia – The cause of action could not have been adjudicated without impleading all the defendants as parties – Thus, in terms of Order 1 Rule 3 of the CPC, the relief claimed by Bhushan Steel lies against all the defendants, albeit to different extents and arising out of a series of transactions – Thus, Bhushan Steel was within its rights to enjoin all the defendants under a single suit as per Order 1 Rule 7 of the CPC. [Paras 11, 12 and 13]

Bill of Lading – Purpose of, Explained.

Held: A Bill of Lading serves the following purposes: (a) it is receipt of the goods shipped and the terms on which they have been received; (b) it is evidence for the contract of carriage of goods; and (c) it is a document of title for the goods specified therein. [Para 8]

Territorial Jurisdiction – Question of – Stage at which to be decided – At the outset.

Held: The issue of territorial jurisdiction should be decided at the outset rather than being deferred till the matter is resolved. [Para 15]