In the context of Indian civil litigation, territorial jurisdiction determines the geographical area within which a civil court can entertain and decide a suit. It ensures that a suit is filed in a court most closely connected with the dispute, making it convenient for parties and just for adjudication.
What is Territorial Jurisdiction?
Territorial Jurisdiction refers to the authority of a civil court to hear and decide a case based on the geographical location where the cause of action arose, where the defendant resides or carries on business, or where the property in dispute is situated.
Legal Provisions: CPC Sections and Orders
| Provision | Subject |
|---|---|
| Section 15 to 20 CPC | General provisions regarding jurisdiction of civil courts |
| Section 16 CPC | Suits related to immovable property |
| Section 17 CPC | Suits where property is situated in more than one jurisdiction |
| Section 18 CPC | Jurisdiction where local limits are uncertain |
| Section 19 CPC | Suits for compensation for wrongs to person or movable property |
| Section 20 CPC | Other suits—based on residence or cause of action |
Types of Territorial Jurisdiction under CPC
1. Place where the Defendant Resides or Carries on Business
Under Section 20(a) CPC, a suit can be instituted where the defendant resides, carries on business, or personally works for gain.
Example: If the defendant runs a business in Delhi, the suit can be filed in Delhi.
2. Place Where the Cause of Action Arises
Under Section 20(c) CPC, a suit may also be instituted in the court where the cause of action, wholly or in part, arises.
Example: If a contract was signed in Mumbai but breached in Pune, suit can be filed in either city.
3. Place Where Immovable Property is Situated
Under Section 16 CPC, suits related to rights in immovable property must be filed where the property is located.
Example: A dispute over agricultural land in Jaipur must be filed in the court having jurisdiction over Jaipur.
Special Situations and Provisions
Section 17: Property in Different Jurisdictions
If the property is situated in areas under different courts, the suit may be filed in any court within whose jurisdiction any portion of the property is located, provided that court can provide effective relief.
Section 18: Uncertain Jurisdiction
Where there is uncertainty about the jurisdiction, the High Court may direct in which of the courts the suit should be filed.
Section 19: Wrong to Person or Movable Property
A suit for compensation for wrong done to person or movable property may be filed either where the wrong was done or where the defendant resides.
Case Law on Territorial Jurisdiction
ABC Laminart Pvt. Ltd. v. A.P. Agencies (AIR 1989 SC 1239)
Held that a part of cause of action is sufficient to give jurisdiction to a court.
Oil and Natural Gas Commission v. Utpal Kumar Basu (1994 AIR SC 1415)
The Supreme Court emphasized that filing a case outside territorial jurisdiction is abuse of process.
Summary Table: Territorial Jurisdiction
| Basis of Jurisdiction | Relevant Section | Explanation |
|---|---|---|
| Residence/Business of Defendant | Section 20(a) | Suit can be filed where defendant resides or carries on business |
| Cause of Action | Section 20(c) | Suit can be filed where the cause of action wholly or partly arises |
| Location of Immovable Property | Section 16 | Mandatory to file where property is situated |
| Multiple Jurisdictions of Property | Section 17 | File in any jurisdiction where part of property is located |
| Jurisdiction Uncertain | Section 18 | High Court can direct appropriate court |
| Compensation for Wrong/Movable Property | Section 19 | File either where wrong occurred or where defendant resides |
Consequences of Lack of Jurisdiction
- Filing a suit in a court without territorial jurisdiction can result in:
- Rejection of plaint under Order 7 Rule 11
- Transfer or return of plaint under Section 24 or Order 7 Rule 10 CPC
- Delay and expense for both parties