AIR 1960 PUNJAB 450 ::62 Pun LR 462 ::ILR (1960) 2 Punj 291

Punjab High Court

Hon'ble Judge(s): S. S. Dulat, Bishan Narain, I. D. Dua , JJJ

Civil P.C. (5 of 1908) , S.20(c)— Suit on contract - Place of suing - Suit by creditor - Place where money is payable - Ascertainment of - Place of payment not specified by contract - English Common Law rule that debtor must seek his creditor - Not applicable. Where territorial jurisdiction of the Court is to be determined on the ground that the price of goods was payable within its jurisdiction, the Court should find as a fact whether the money was agreed expressly or impliedly to be paid within its territorial jurisdiction. To find this fact the Court is entitled to take into consideration the contract, its attending circumstances, the creditor's ordinary place of residence or business and the course of dealings between the parties including all the other factors relevant in a given case. If the Court comes to the conclusion that on the facts and circumstances established in the case the amount sought to be recovered was payable within the jurisdiction of the Court, then it should proceed to entertain the suit, otherwise it has no jurisdiction to do so on the basis of this ground.(Para 24) The English Common Law rule that, where there is no express agreement that payment is to be made at a particular place, a debtor must seek his creditor is not applicable in India, as a matter of law, to determine the forum where the suit is....