Code of Civil Procedure, 1908
20.Other suits to be
instituted where defendants reside or cause of action arises.-
Subject to the
limitations aforesaid, every suit shall be instituted in a Court within the
local limits of whose jurisdiction-
(a) the defendant, or
each of the defendants where there are more than one, at the time of the
commencement of the suit, actually and voluntarily resides, or carries on
business, or personally works for gain; or
(b) any of the
defendants, where there are more than one, at the time of the commencement of
the suit, actually and voluntarily resides, or carries on business, or
personally works for gain, provided that in such case either the leave of the
Court is given, or the defendants who do not reside, or carry on business, or
personally work for gain, as aforesaid, acquiesce in such institution; or
(c) the cause of
action, wholly or in part, arises.
Explanation I.- Where a person has a permanent dwelling at one place and also a
temporary residence at another place, he shall be deemed to reside at both
places in respect of any cause of action arising at the place where he has such
temporary residence.
Explanation II.- A corporation shall be deemed to carry on business at its sole or
principal office in {Subs. by Act 2 of 1951, s.3, for "the States".}
[India] or, in respect of any cause of action arising at any place where it has
also a subordinate office, at such place.
Illustrations
(a) A is a tradesman in Calcutta.B carries on business in Delhi.B, by his agent
in Calcutta, buys goods of A and requests A to deliver them to the East Indian
Railway Company. A delivers the goods accordingly in Calcutta. A may sue B for
the price of the goods either in Calcutta, where the cause of action has
arisen, or in Delhi, where B carries on business.
(b) A resides at
Simla, B at Calcutta and C at Delhi. A, B and C being together at Benares, B
and C make a joint promissory note payable on demand and deliver it to A.A may
sue B and C at Benares, where the cause of action arose. He may also sue them
at Calcutta, where B resides, or at Delhi. There C resides; but in each of
these cases, if the non-resident defendant objects, the suit cannot proceed
without the leave of the Court.