# Air Force Naval Housing Board through Director General & Anr. Revisionists v. Chandra Shekhar Vats

- **Citation:** (2016) 5 ILRA 1888
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2016-05-06
- **Bench:** Sudhir Agarwal
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/air-force-naval-housing-board-through-director-general-anr-revisionists-v-43875
- **Pages:** 5

## Headnote

jurisdiction of Delhi Courts - Effect - Held, jurisdiction of Civil Court is governed by Sections 15 to 20 CPC -
Parties cannot by agreement confer jurisdiction on a Court which otherwise lacks jurisdiction - Exclusive
jurisdiction clause is enforceable only where more than one Court has jurisdiction - In present case, no part
of cause of action shown to have arisen in Delhi - Court at Gautam Budh Nagar had territorial jurisdiction -
Order rejecting application for rejection of plaint upheld - Revision dismissed.

Case Law discussed:
A.B.C. Laminart Pvt. Ltd. v. A.P. Agencies, Salem, (1989) 2 SCC 163
Hakam Singh v. Gammon (India) Ltd., AIR 1971 SC 740

Result: Civil Revision dismissed.

## Text

1888 INDIAN LAW REPORTS ALLAHABAD SERIES
49. In view of the above, the appeal of appellant Ganga Ram is allowed while the appeal of
Rakesh is partly allowed.

Office is directed to send a certified copy of this judgement along-with the lower
court record to the court concerned at an early date for its compliance and necessary action.

Let a copy of this judgement be kept on record of Criminal Appeal No.320 of 1995.
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REVISIONAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 06.05.2016

BEFORE

THE HON'BLE SUDHIR AGARWAL, J.

Civil Revision No.- 504 Of 2007

Air Force Naval Housing Board through Director General & Anr. ...Revisionists
Versus
Chandra Shekhar Vats ...Opposite Party

Counsel for the Revisionists:
Sri Vatsal Srivastava

Counsel for the Opposite Party:
Vatsal Srivastava

Headnote:
Para 8, 12 & 13 - Territorial jurisdiction - Ouster clause - Validity - Property situated in Gautam Budh
Nagar - Suit for injunction relating to allotment of flat - Clause in master brochure providing exclusive
jurisdiction of Delhi Courts - Effect - Held, jurisdiction of Civil Court is governed by Sections 15 to 20 CPC -
Parties cannot by agreement confer jurisdiction on a Court which otherwise lacks jurisdiction - Exclusive
jurisdiction clause is enforceable only where more than one Court has jurisdiction - In present case, no part
of cause of action shown to have arisen in Delhi - Court at Gautam Budh Nagar had territorial jurisdiction -
Order rejecting application for rejection of plaint upheld - Revision dismissed.

Case Law discussed:
A.B.C. Laminart Pvt. Ltd. v. A.P. Agencies, Salem, (1989) 2 SCC 163
Hakam Singh v. Gammon (India) Ltd., AIR 1971 SC 740

Result: Civil Revision dismissed.

(Delivered by Hon'ble Sudhir Agarwal, J.)

1. This revision under Section 115 CPC has arisen from order dated 15.09.2007 passed by
Civil Judge (Senior Division), Gautam Budh Nagar in Original Suit No. 599 of 2005, deciding
5 All. Air Force Naval Housing Board through Director General & Anr. Vs Chandra Shekhar
 Vats

1889
issue no.3, relating to territorial jurisdiction and answering the same in negative and also rejecting
application no. 22-C filed by the defendant revisionist, praying for rejection of plaint on the ground
of lack of territorial jurisdiction of Court below.

2. Plaintiff respondent instituted Original Suit No. 599 of 2005 seeking permanent
injunction restraining defendant revisionist from allotting and handing over possession of the
disputed flat to any other person and also to restore allotment in favour of plaintiff respondent
along with his possession. Defendant revisionist filed an application 22C under Section 9 read with
Section 151 CPC, raising preliminary objection in view of para 39(c) of master brochure as well as
para 25 of allotment letter dated 09.07.2003 stating that jurisdiction lies only with Civil Court at
Delhi or Delhi High Court, as the case may be. It is this application which has been rejected by
Court below. Hence this revision.

3. It is contended that the condition in the master brochure as well as allotment letter
constitutes consent of allottee, providing that in respect of dispute, if any, between parties which
needs to be resolved through Court, only the Court at Delhi would have jurisdiction, was binding
upon plaintiff-respondent and Court below has erred in law in taking otherwise view.

4. Para 39 of master brochure reads as under:

"The following norms will be observed in dealing with Court Cases, if any filed
against the AFNHB:-

(a) The Registrants or allottee may take recourse to Court only after he or she has
exhausted all avenues of redressal.

(b) The Board being a registered Society shall sue and be sued in the name of
Director General only. No other Officer of the Board or any Member of the Board of Management
shall be a party to any legal proceedings.

(c) All suits and legal proceedings of any kind against the Board shall be instituted
in the appropriate court(s) in Delhi or New Delhi notwithstanding the location of the property,
which may be subject matter of the dispute.

(d) No suits or legal proceedings of any kind shall be instituted against the Board
unless a notice in writing has been delivered to the Board stipulating the nature of claim, cause of
action, relief sought, name, registration number and address of the person, and a period of two
months has expired thereafter."

5. Para 25 of allotment letter (Annexure 5 to writ petition) reads as under:
1890 INDIAN LAW REPORTS ALLAHABAD SERIES
In the event of any dispute arising with regard to the terms & conditions of
allotment or possession of dwelling unit, the same shall be subject to the jurisdiction of District
Court at Delhi or t5he High Court of Delhi at New Delhi.

6. Plaintiff respondent has filed suit stating that he is an Ex-Seargent of Indian Air Force
and submitted an application dated 02.06.2003 for allotment of a flat. He also deposited initial
payment of Rs. 50,500/- on 05.06.2003 with defendant revisionist. Vide allotment letter dated
09.07.2003, Flat No. Type A Multistoried, area 1250 Sq. ft was allotted on a total price of Rs.
15.95 Lacs. Plaintiff-respondent retired from active service of Indian Air Force on 30.10.1989.
Defendants never made any demand for payment of installments or otherwise construction price of
flat allotted to him and cancelled allotment by letter dated 29.04.2005. Plaintiff-respondent
represented vide letter dated 12.05.2005 and also remitted three demand drafts of Rs. 1,35,000/-
with request to revoke cancellation but nothing has happened. Hence a suit for mandatory
injunction, directing defendant-revisionist to maintain allotment of disputed flat to Plaintiffrespondent and to allot the same to anybody else.

7. So far as para 25 of allotment letter is concerned, we find that it applies to a dispute
relating to terms and conditions of allotment or possession of dwelling unit but nowhere allotment
itself has been cancelled. However para 39 of master brochure is substantially wide and covers
every situation wherever a suit or legal proceedings is/are brought against defendant-revisionist.
Jurisdiction of a Civil Court is governed by Sections 15 to 20 of Code of Civil Procedure
(hereinafter referred to as "CPC"). Section 15 CPC stats that every suit shall be instituted in Court
of lest grade competent to try it. Section 16 provides that suit for recovery of immovable property
with or without rent or partition of immovable property, foreclosure, sale or redemption, if any, in
the case of mortgage or charge upon immovable property, determination of any other right to or
interest in immovable property, compensation for wrong to immovable property, recovery of
movable property actually under distrait or attachment, shall be instituted in the Court within the
local limits of whose jurisdiction the property is situate. Section 17 provides that a suit to obtain
relief respecting to, or compensation for wrong to, immovable property situate within jurisdiction
of different Courts, may be instituted in any Court within the local limits of whose jurisdiction any
portion of the property is situate. Section 18 deals with the place where local limits of jurisdiction
of Courts are uncertain. Section 19 CPC apparently is not applicable to dispute in the case in hand.
Section 20 CPC deals with other suits not governed by earlier provisions.

8. In the present case, property is situated in District Gautam Budh Nagar in State of U.P.
Therefore, the Court at Gautam Budh Nagar has jurisdiction to entertain the suit in question. Master
brochure, at best, can be said to be an offer made by defendant-revisionist but it cannot be said that
by submitting application for allotment of a flat, whatever is stated in the master brochure stands
accepted by plaintiff-respondent and became a part of the contract. In fact, application submitted by
plaintiff-respondent constitutes a counter offer and when after accepting the said application the
devfendant-revisionist issued allotment letter, containing several terms and conditions, only that
can be said to constitute a contract between the parties. As already said, para 25 of allotment letter
is not applicable to nature of suit instituted in the present matter. Moreover, a contract between
5 All. Air Force Naval Housing Board through Director General & Anr. Vs Chandra Shekhar
 Vats

1891
parties that a Court at a particular place only shall have jurisdiction having the effect of ousting
jurisdiction of other courts, has not been held to be a valid contract in the light of Section 28 of
Indian Contact Act 1872 (hereinafter referred to as "Act 1872").

9. In A.B.C. Laminart Pvt. Ltd. & another vs A.P. Agencies, Salem (1989) 2 SCC 163,
the Court said that such a contract may be held valid only when jurisdiction to entertain the cause
of action falls within authority of more than one courts and at different places and, in such a case, if
the parties agree that the Court at one place only, shall have jurisdiction, that contract will be
enforceable, for the reason, that it is not a case, where, the parties have agreed for filing a suit at a
place which has no jurisdiction whatsoever, but have agreed to ascertain that only one Court out of
several who have jurisdiction, shall be competent to entertain the matter. Such a contract would not
be bad in law for the reason that parties have not conferred jurisdiction, which otherwise did not
have jurisdiction but when jurisdiction lies at different places, the parties have chosen to confine
institution of a suit only at one place. The Court in this regard said as under:

Under Section 23 of the Indian Contract Act the consideration or object of an
agreement is lawful, unless it is opposed to public policy. Every agreement of which the object or
consideration is unlawful is void. Hence there can be no doubt that an agreement to oust absolutely
the jurisdiction of the Court will be unlawful and void being against the public policy. Ex dolo
malo non oritur actio. If therefore it is found in this case that Clause 11 has absolutely ousted the
jurisdiction of the Court it would be against public policy. However, such will be the result only if
it can be shown that the jurisdiction to which the parties have agreed to submit had nothing to do
with the contract. If on the other hand it is found that the jurisdiction agreed would also be a
proper jurisdiction in the matter of the contract it could not be said that it ousted the jurisdiction of
the Court. This leads to the question in the facts of this case as to whether Kaira would be proper
jurisdiction in the matter of this contract. It would also be relevant to examine if some other courts
than that of Kaira would also have had jurisdiction in the absence of Clause 11 and whether that
would amount to ouster of jurisdiction of those courts and would thereby affect the validity of the
clause.

10. To the similar effect is law laid down in an earlier decision of Supreme Court in
Hakam Singh vs M/S. Gammon (India) Ltd 1971 AIR 740 wherein the Court held that it was not
open to the parties to agree to confer by their agreement jurisdiction on a Court which it did not
otherwise possess under the Code of Civil Procedure. However, where two courts or more have
jurisdiction under CPC to try a suit or proceedings and agreement between the parties that the
dispute between them shall be tried in one of such courts, would not be contrary to public policy.
Such an agreement would not contravene Section 28 of Act 1872.

11. In A.B.C. Laminart Pvt. Ltd. (supra) after considering several authorities on the
subject, the Court summarized as under:

"It was held that it was not open to the parties to agreement to confer by their
agreement jurisdiction on a Court which did not possess under the Code. But where two Courts or
1892 INDIAN LAW REPORTS ALLAHABAD SERIES
more have under the CPC jurisdiction to try the suit or proceeding an agreement between the
parties that the dispute between them shall be tried in one of such Courts was not contrary to
public policy and such an agreement did not contravene Section 28 of the Contract Act. Though
this case arose out of an arbitration agreement there is no reason why the same rule should not
apply to other agreements in so far as jurisdiction is concerned. Without referring to this decision
a Division Bench of the Madras High Court in Nannak Chand Vs. T.T. Elect. Suypply Co., A.I.R.
1975 Madras 103 observed that competency of a Court to try an action goes to the root of the
matter and when such competency is not found, it has no jurisdiction at all to try the case. But
objection based on jurisdiction is a matter which parties could waive and it is in this sense if such
jurisdiction is exercised by Courts it does not go to the core of it so as to make the resultant
judgment a nullity."

12. In the present case, we asked from learned counsel for revisionist as to whether it can
be said that cause of action, giving rise to suit in question is said to have arisen within jurisdiction
of Courts at Delhi, he could not address the Court to show as to how such a cause of action can be
said to have arisen at Delhi. In that view of the matter, this Court is of the opinion that suit has
rightly been instituted in Court at Gautam Budh Nagar. The Court below has neither committed any
patent illegality nor material irregularity nor jurisdictional error in passing impugned order so as to
warrant interference in this revision.

13. The revision lacks merit and is accordingly dismissed.

14. Costs made easy.
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REVISIONAL JURISDICTION
CRIMINAL SIDE
DATED: ALLAHABAD 09.05.2016

BEFORE

THE HON'BLE MRS. RANJANA PANDYA, J.

Criminal Revision No.- 1217 Of 2016

Raj Kumar Agrawal Alias Raju Garg ...Revisionist
Versus
State Of U.P. & Anr. ...Opposite Parties

Counsel for the Revisionist:
Ashok Pal Singh

Counsel for the Opposite Parties:
G.A., N.I. Jafri

This revision has been preferred against the order dated 05.04.2016 passed by the learned
Additional Sessions Judge, Court No. 16, Kanpur Nagar in ST No. 634 of 2014 (State Vs. Raj