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M/S Vittal Cashew Industries vs Tropical Industries International ... on 12 August, 2022

Bench: B.R. Gavai, Pamidighantam Sri Narasimha

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                                           IN THE SUPREME COURT OF INDIA
                                            CIVIL APPELLATE JURISDICTION


                                       CIVIL APPEAL NO. 5277 OF 2022
                               (Arising out of SLP (CIVIL) NO. 13822 OF 2022)




                         M/S VITTAL CASHEW INDUSTRIES & ANR.                          APPELLANT(S)

                                                           VERSUS

                         TROPICAL INDUSTRIES INTERNATIONAL
                         PVT. LTD. & ANR.                                            RESPONDENT(S)



                                                          O R D E R

Leave granted.

The appeal challenges the order dated 19.07.2022 passed by the learned Single Judge of the High Court of Karnataka at Bengaluru, thereby dismissing the writ petition filed by the appellants which was in turn filed challenging the order dated 20.04.2022 passed by the IV Additional District Judge & Commercial Court, D.K., Mangaluru, thereby rejecting the application filed by the appellants for granting leave to defend the recovery suit instituted by the respondents herein. Heard Mr. Atmaram Nadkarni, learned senior counsel appearing on behalf of the appellants and Mr. G. Saikumar, Signature Not Verified Digitally signed by learned senior counsel appearing on behalf of the GEETA AHUJA Date: 2022.08.17 15:59:10 IST Reason: respondents.

Mr. Atmaram Nadkarni submits that, though an issue with regard to jurisdiction of the Court at Mangaluru in view of Clause 7.2 of the agreement dated 09.04.2019 was raised before the High Court, the High Court has failed to take into consideration the said clause of the agreement. He relied upon the judgment of this Court in the case of “Swastik Gases Pvt. Ltd. Vs. Indian Oil Corporation. Ltd. reported in 2013 (9) SCC 32.” Mr. G. Saikumar, learned counsel relied on the judgment of this Court in the case of “Patel Roadways Ltd. Bombay Vs. Prasad Trading Company” reported in 1991 (4) SCC 270 in support of the submission that parties cannot confer jurisdiction upon a Court within whose jurisdiction, no part of the cause of action arises. Therefore, the Court at Delhi could not have jurisdiction since the entire cause of action arises at Mangaluru and as such, it is only the Court at Mangaluru which would have jurisdiction.

Clause 7.2 of the agreement between the parties dated 09.04.2019 reads as:-

“Any dispute, controversy or disagreement between the Parties arising out of or in connection with this Agreement shall be subject to the jurisdiction of the courts at New Delhi. The Parties irrevocably waive any objection to venue in these courts and any objection based on the doctrine of forum non convenience or similar grounds that these courts are inconvenient for determination of a dispute.”  3 A specific argument before the learned Single Judge was raised by the appellants in that behalf. The least that was expected of the High Court was to consider as to what was the effect of the said clause on the lis between the parties. There is no consideration at all.

In that view of the matter, the impugned order is quashed and set aside and the matter is remitted back to the High Court to the extent of consideration of the issue of jurisdiction. Ordered accordingly.

The learned Single Judge of the High Court is requested to decide the matter on remand as expeditiously as possible, and in any case, within a period of six months from today. The counsel for the parties shall communicate this order to the learned Single Judge.

Till the High Court decides the matter on remand, the learned Trial Court shall not proceed with the trial.

The appeal is disposed of. Pending application(s), if any, shall also stand disposed of.

…………………………………….J. [B.R. GAVAI] …………………………………………………………………….J. [PAMIDIGHANTAM SRI NARASIMHA] NEW DELHI;

12th August, 2022
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ITEM NO.11                    COURT NO.14        SECTION IV-A

                 S U P R E M E C O U R T O F      I N D I A
                         RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (C) No(s). 13822/2022 (Arising out of impugned final judgment and order dated 19-07-2022 in WP No. 9481/2022 passed by the High Court Of Karnataka At Bengaluru) M/S VITTAL CASHEW INDUSTRIES & ANR. Petitioner(s) VERSUS TROPICAL INDUSTRIES INTERNATIONAL PVT. LTD. & ANR. Respondent(s) (FOR ADMISSION and I.R.) Date : 12-08-2022 This petition was called on for hearing today. CORAM :

HON'BLE MR. JUSTICE B.R. GAVAI HON'BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA For Petitioner(s) Mr. Atmaram Nadkarni, Sr. Adv.

Mr. Aruna Shyam, Sr. Adv. Mr. Gautam Bhardwaj, Adv. Mr. Ashwin Kumar D.S., Adv. Ms. Surbhi Mehta, AOR Ms. Manvi Bhandari, Adv. Mr. Adiraj Badi, Adv.

Ms. Deepti Arya, Adv.

For Respondent(s) Mr. G. Saikumar, Adv.

Ms. Sowmya Saikumar, Adv. Mr. Udita Singh, AOR UPON hearing the counsel the Court made the following O R D E R Leave granted.

The Civil appeal is disposed of in terms of the signed order.

Pending application(s), if any, shall also stand disposed of.

   (SONIA GULATI)                            (ANJU KAPOOR)
SENIOR PERSONAL ASSISTANT               COURT MASTER (NSH)

(signed order is placed on the file)