Code
Subject to
the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose
jurisdiction(a) the defendant, or each of the defendants where there are more than one, at the time of the
commencement of the suit, actually and voluntarily resides, or carries on business, or personally
works for gain; or(b) any of the defendants, where there are more than one, at the time of the commencement of the
suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on
business, or personally works for gain, as aforesaid, acquiesce in such institution; or(c)The cause of action, wholly or in part, arises.1*****2[Explanation].– A corporation shall be deemed to carry on business at its sole or principal office
in3[India] or, in respect of any cause of action arising at any place where it has also a subordinate
office, at such place.Illustrations(a) A is a tradesman in Calcutta, B carries on business in Delhi. B, by his agent in Calcutta, buys goods of A
and requests A to deliver them to the East Indian Railway Company. A delivers the goods accordingly in Calcutta.
A may sue B for the price of the goods either in Calcutta, where the cause of action has arisen, or in Delhi, where B
carries on busines.(b) A resides at Simla, B at Calcutta and C at Delhi. A, B and C being together at Benaras, B and C make a joint
promissory note payable on demand, and deliver it to A. A may sue B and C at Benaras, where the cause of action
arose. He may also sue them at Calcutta, where B resides, or at Delhi, where C resides; but in each of these cases, if
the non-resident defendant objects, the suit cannot proceed without the leave of the Court
Explanation of Section 20 CPC
Section 20 of the Code of Civil Procedure lays down rules to determine the proper place (territorial jurisdiction) for filing a civil suit. It ensures that a case is brought either where the defendant resides or works for gain, or where the cause of action arises.
This section acts as a residuary clause when the suit is not covered by Sections 15 to 19 of the CPC. It aims to balance the convenience of the defendant with the principles of fair access to justice.
Under Clause (a) and (b), the suit must be instituted where the defendant or all defendants reside or carry on business. Clause (c) permits a suit to be filed where the cause of action arises—either wholly or in part.
Illustration
Let’s simplify this provision with real-world examples:
Illustration (a):
A is a trader in Kolkata. B carries on business in Delhi. B places an order through his agent in Kolkata to buy goods from A. A delivers the goods in Kolkata. A may file a suit for the price of goods either in Kolkata (where cause of action arose) or in Delhi (where B carries on business).
Illustration (b):
A lives in Shimla, B in Kolkata, and C in Delhi. All three meet in Varanasi where B and C jointly execute a promissory note in favor of A. A can sue them in Varanasi (where the cause of action arose). Alternatively, he may sue in Kolkata (where B lives) or Delhi (where C lives), but only if the non-resident defendant does not object or the Court grants leave.
Common Questions Asked on Section 20 CPC
Q1. What is the objective of Section 20 CPC?
The objective is to determine which Court has jurisdiction to entertain a civil suit when it’s not covered under Sections 15 to 19 CPC. It promotes convenience for the defendant while ensuring access to justice.
Q2. Can a suit be filed where the plaintiff resides?
No. Section 20 focuses on the residence or place of business of the defendant, or where the cause of action arises—not where the plaintiff lives.
Q3. What is meant by “cause of action” under Section 20?
“Cause of action” refers to all material facts necessary for the plaintiff to prove his claim. Even if a part of the cause of action arises within a jurisdiction, the suit may be instituted there.
Q4. How does this section apply to corporations?
Under the Explanation, a corporation is deemed to carry on business either at its principal office or any subordinate office where the cause of action arises.
Conclusion
Section 20 CPC is a crucial provision ensuring that suits are filed in a Court that has logical jurisdiction either over the defendant or over the subject matter of the dispute. This safeguards the rights of the defendant while enabling the plaintiff to initiate action where necessary.
For more detailed insights into civil procedure law, visit ApniLaw.com.
