I entered into a contract with a person for sale of my land. But he committed breach of contract. Presently I am staying in Agra and the other person is residing in Mumbai. The property is in Bangalore. Where should I file the suit? Can I initiate suit in the place where I am residing?
The party who is guilty of breach of contract is liable to pay damages to the aggrieved party and thus such aggrieved party can file a suit for damages to compensate the aggrieved party’s loss. As per Section 20 of Civil Procedure Code, 1908 (CPC)suits to be instituted where defendants reside or cause of action arises. Under this section, the suits can be instituted in court within the local limits of whose jurisdiction the defendant actually resides when the suit commenced or carries on business there. Where the cause of action wholly or in part arose. With the grant of court, suit can be filed in any other place if the court deems necessary. In this case, you can file a suit where the contract happened between the two parties or where the cause of action took place or where the defendant resides also will form a proper jurisdiction to the suit.
Section 21 of the CPC states that no objection to jurisdiction can be brought up as to the place of suing by any Appellate Court unless it was taken in the court at first instance or at earliest opportunity. With regard to competence of court also no objection shall not be heard with reference to pecuniary limits of its jurisdiction unless it was brought at the earliest opportunity in the first instance itself. No objection with reference to local limits of jurisdiction shall be allowed unless there has been a consequent failure of justice.
In Nand Lal Mahesh Kumar and Anr. vs Beekalene Fabrics Ltd. on (10 January, 2006) Rajasthan High Court dismissed the decree of Additional District Judge where the lower court had dismissed on the ground of lack of jurisdiction. High Court held that decree deserves to be set aside and suit be remitted back to the Trial court to decide on the issues.
If there are 2 or more courts who have jurisdiction to try the suit then if there is an agreement between the parties, that if any dispute arise it can be tried in any of the courts and it will not be contrary to public policy which was held in New Moga Transport Vs United India Insurance Co. Ltd on (23 April, 2004). No parties can enter into any agreement restraining of legal proceedings if done, then it will be void as per Section 28 of the Indian Contract Act 1872.