Case: New Moga Transport Company Vs. United India Insurance Company Ltd

The plaintiff No.2 had purchased certain articles which were booked in 29 bales. Material was booked with New Moga Transport Co., the present appellant (defendant No.1) for transportation to Barnala. The goods were loaded in truck No. HYN 6973. The consignment reached Barnala at 9.30 a.m. on 23.5.1993 near the factory of plaintiff No.2. On account of a fire which took place allegedly due to electric short - circuiting there was destruction of whole of the materials. Plaintiff No.2 claimed that he had suffered loss and lodged a claim for a sum of Rs. 5,10,000/- against the present appellant i.e. defendant No.1. Since nothing was paid and only a non-delivery of goods certificate was issued by the appellant (defendant No.1), respondent No.1 (plaintiff no.1) settled the claim for a sum of Rs. 4,63,516/- on the basis of the surveyors report and the amount was paid to plaintiff No.2 and due receipt was obtained. Plaintiff No.2 on receipt of the amount executed a letter or subrogation-cum-special power of attorney, assigning, abandoning and transferring all the rights in favour of plaintiff no.1 who claims the compensation from defendant No.1 i.e. the present appellant. In the suit a specific plea inter alia was taken by the present appellant that the Court at Barnala had no jurisdiction to deal with the suit. With reference to the consignment note, it was submitted that the Court at Udaipur alone had jurisdiction to deal with the matter. In the consignment note it was indicated that the Court having jurisdiction was the one situated at Udaipur. As noted above, the trial Court did not accept the plea that the Court at Udaipur alone had jurisdiction. But in appeal, the first Appellate Court upset the verdict of the trial Court. By the impugned judgment the High Court restored the judgment of the trial Court and held that the plaintiffs were entitled to relief and Court at Barnala had jurisdiction.

Court's reasoning:
Had it only been indicated in the consignment note the Court at Head Office city had jurisdiction then in the absence of a precise indication of the place what would have the consequence, we are not presently concerned, more particularly, when the consignment note itself had indicated that Court at Udaipur alone had jurisdiction.18. As was observed by this Court in Shrirams case (supra) referring to Hakam Singhs case (supra) an agreement affecting jurisdiction of Courts is not invalid. It is open to the parties to choose any one of the two competent Courts to decide the disputes. Once the parties bound themselves as such it is not open for them to choose a different jurisdiction.19. Above being the factual and legal position, the inevitable conclusion is that the High Court was not justified in upsetting the order of First Appellate Court. It is not a case where the chosen Court did not have jurisdiction. The only question, therefore, related to exclusion of the other Courts.20. The intention of the parties can be culled out from use of the expressions only, alone , exclusive and the like with reference to a particular Court. But the intention to exclude a Courts jurisdiction should be reflected in clear, unambiguous, explicit and specific terms. In such case only the accepted notions of contract would bind the parties. The first Appellate Court was justified in holding that it is only the Court at Udaipur which had jurisdiction to try the suit. The High Court did not keep the relevant aspects in view while reversing the judgment of the trial Court. Accordingly, we set aside the judgment of the High Court and restore that of the first Appellate Court. The Court at Barnala shall return the plaint to the plaintiff No. 1 (respondent No.1) with appropriate endorsement under its seal which shall present it within a period of four weeks from the date of such endorsement of return before the proper Court at Udaipur. If it is so done, the question of limitation shall not be raised and the suit shall be decided on its own merits in accordance with law