TITLE : Shreem Electric Limited V Transformers and Rectifiers
CORAM : Hon’ble justice Sandeep V. Marne
DATE : 12th December, 2023
CITATION : Appeal No. 14843 of 2019
FACTS
The order passed by the District court was in challenge for rejection of a Plaint under Order 7 Rule 11 of the CPC. The plaintiff is a manufacturing and supplying unit involved in supplying Turn Key Projects for power stations. The defendant is engaged in power distribution and manufacturing transformers and alleged the petitioners of refusal to fulfill obligations arising from purchase orders. The petitioners initiated a commercial suit against the defendant. The defendant filed an application seeking rejection of plaint under Order 7 Rule 11 of CPC claiming the absence of cause of action and jurisdiction. The district court had returned the plaint to Ahmedabad while maintaining that the plaint cannot be rejected.
LAWS INVOLVED
Order 7 Rule 11 of CPC states that the plaint will be rejected on the following grounds :
- Where there is no cause of action
- Where the relief claimed is undervalued and has not been revised upon courts order.
- Where there is a wrong stamp paper for relief claimed under a properly valued plaint.
- Where the suit appears to be barred by law
- Where the plaint is filed in duplicates or fails to comply with the provisions of Rule 9
ISSUES
- Whether the return of the plaint to Ahmedabad was justified by the district court?
JUDGEMENT
The court analysed that the district court came to the conclusion that there is a cause of action for filing the suit and has proceeded to reject the Defendant’s application. It was observed that the district court did not give a finding that the court lacked jurisdiction. It stated that just because there is a pending suit in another court, the need to tie the same would be set aside. The court therefore set aside the orders of the District Court.
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Written by- Sanjana Ravichandran
