Citation : 2026 Latest Caselaw 1812 Cal/2
Judgement Date : 12 March, 2026
In the High Court at Calcutta
Commercial Division
Original Side
Judgment (2)
PRESENT :
THE HON'BLE JUSTICE ANIRUDDHA ROY
IA NO. GA-COM/3/2025
In CS-COM/10/2024
SHREE RIDDHI HEALTH
FOODS PVT LTD
Vs
ADM AGRO INDUSTRIES KOTA
AND AKOLA PVT
LTD
And
IA NO. GA-COM/4/2025
In CS-COM/10/2024
SHREE RIDDHI HEALTH
FOODS PVT LTD
Vs
ADM AGRO INDUSTRIES KOTA
AND AKOLA PVT LTD
For the plaintiff : Mr. Saurav Jain, Adv.
Ms. Diptomoy Talukder, Adv.
Mr. Arundhuti Karmokar, Adv.
For the respondent : Mr. S. Sengupta, Adv.
Mr. R. Karnani, Adv.
Mr. Amitabh Ray, Adv.
Mr. K. Modok, Adv.
Heard on : March 12, 2026
2
Judgment on : March 12, 2026
[In Court]
ANIRUDDHA ROY, J :
FACTS :
1. The defendant is the applicant. Prayers from the Master's
Summons taken out by the defendant are quoted below:
"a) An order of return of the plaint filed in the instant
suit being C.S. (Com) No.10 of 2024 to be filed before
the appropriate Court of Law;
c) Stay of all further proceedings in C.S. (Com) No.10
of 2024 including the applications filed therein;
d) Ad interim orders in terms of prayers as above;
e) Cost of and incidental to this application be paid by
the plaintiff;
f) Such further order or orders, direction or directions
be passed as this Hon'ble Court may deem fit and
proper."
2. Only inescapable facts are stated. The defendant is the seller of
goods and the plaintiff is the purchaser. Plaintiff has filed the suit
in the form of claiming certain compensation on the ground
mentioned in the plaint. The prayers from the plaint are quoted
below:
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
"(a) A Decree for a sum of Rs.7,79,77,495/- to be paid
by the defendant to the plaintiff as pleaded in
paragraph 35 above;
(b) Interest and interest upon Judgment of
Rs.7,79,77,495/- @ 24% per annum and interest
pendente lite at such rate as this Hon'ble Court may
deem fit and proper;
(c) Receiver;
(d) Injunction;
(e) Costs;
(f) Such further or other reliefs."
3. There is a forum selection clause in the contract between the
parties to the effect that governing law and jurisdiction is to be
understood by the parties that the agreement shall be governed by
the laws of India and shall be subject to exclusive jurisdiction for
Courts of Gurugram, Haryana, being clause 15 to the contract at
page 104 to the application. In the light of the above, the instant
application has been filed by the defendant praying for return of
plaint as this Court has no territorial jurisdiction.
4. Mr. Diptomoy Talukdar, learned advocate appearing for the
defendant submits that on reading of the plaint, it would be
evident that plaintiff has suppressed and did not disclose certain
documents which would show that the cause of action in the IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
plaint arose beyond the territorial jurisdiction of this Court and as
such, this Court has no jurisdiction to try, entertain and
adjudicate the suit.
5. Mr. Talukder in support of his contention has referred to sub-
paragraph-(f), (g) and (h) to paragraph 9 from his application,
which are quoted below:
"9 f. On November 8, 2022, the October Shipment was
shipped from San Lorenzo, Argentina on vessel 'MT
DALMACIJA', as is seen from the Bill of Lading No.
ADM03 dated November 8, 2022 issued for this
shipment ("October Shipment BL"). Thereafter, November
on 17, 2022, the Applicant/Defendant and the Plaintiff
executed the Commercial Terms KNDSPOOT/27
('October Shipment CT") for the October Shipment. A
copy of October Shipment BL is annexed hereto and
marked as 'B'. A copy of October Shipment CT is
annexed hereto and marked as "C.
g. To facilitate the clearance of Goods in the October
Shipment, the Applicant/Defendant issued the following
documents to the Plaintiff.
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
h. It is pertinent to mention that the Commercial Terms
executed by the Parties for both shipments contain a
clause which confers the relevant courts of Gurugram,
Haryana, with the exclusive jurisdiction to determine
disputes arising out of the Commercial Terms.
Additionally, the BTB Agreements for both shipments
also make it clear that all disputes arising therefrom are
subject to the exclusive jurisdiction of the courts at
Gurugram, Haryana. The relevant provisions of the
Commercial Terms and BTB Agreements are excerpted
below:
October Shipment CT provides:
"18. Governing Law & Jurisdiction: Gurgaon
Jurisdiction"
Commercial Terms KNDSPOOT/28 dated November 24,
2022 ("November Shipment CT") provides:
"18. Governing Law & Jurisdiction: Gurgaon
Jurisdiction"
October Shipment BTA provides:
15. Governing Law & Jurisdiction: This Agreement shall
be governed by the laws of India and shall be subject to
exclusive jurisdiction of courts of Gurugram, Haryana."
(emphasis supplied)
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
The Bond to Bond Agreement dt. January 19, 2023,
("November Shipment BTA") provides:
*15. Governing Law & Jurisdiction: This Agreement
shall be governed by the laws of India and shall be
subject to exclusive jurisdiction of courts of Gurugram,
Haryana."
(emphasis supplied)
A copy of November Shipment CT is annexed hereto and
marked as 'F'. A copy of the November Shipment BTA
dated January 19, 2023 is annexed hereto and marked
as 'G'."
6. The parties have filed and exchanged their affidavits which are on
record.
SUBMISSIONS:
7. Mr. Talukder submits that since the parties have agreed for
exclusive jurisdiction at Haryana in the event of legal proceeding
and since the cause of action has arisen at Haryana, this plaint
should be returned. In support, he has relied upon a decision of
the Hon'ble Supreme Court in the matter of A.B.C. LAMINARAT
PVT. LTD AND ANOTHER Versus A.P. AGENCIES, SALEM
reported at (1989) 2 SCC 163.
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
8. Mr. S. Sengupta, learned advocate appearing for the plaintiff has
placed reliance upon the plaint and submits that the cause of
action had arisen within the jurisdiction of this Hon'ble Court as,
inter alia, pleaded in paragraphs 7, 8 and 14 thereof. The nature
of cause of action pleaded in the plaint has to be understood and
read as true and correct while adjudicating an application for
return of plaint. Specific assertion made by the plaintiff is that the
contract was received by the plaintiff and had been executed at
the office of the plaintiff within the jurisdiction of this Court. The
breach alleged by the plaintiff was notified to the defendant from
the office of the plaintiff within the jurisdiction. These are
sufficient to maintain the suit before this Hon'ble Court.
9. Accordingly, the application is totally devoid of any merit, frivolous
and should be dismissed.
DECISION:
10. The law is well-settled that while adjudicating an application
for return of plaint, the pleading that the Court where it is
instituted, does not have territorial jurisdiction, the Court must
take the statement made in the plaint to be treated correct and
sacrosanct.
11. The relevant paragraphs from the plaint of which attention of
this Court has been drawn by the plaintiff are quoted below:
"7. The said Siddhant Virmani, after understanding the
intention of the parties, brokered agreements between IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
the defendant and the plaintiff. In connection thereto, by
an e-mail dated September 13, 2022, the said Siddhant
Virmani forwarded 3 sales contract all dated September
13, 2022 in respect Crude Degummed Soya Bean Oil in
edible grade in bulk, having Argentina/Brazil origin for
October, 2022; November, 2022 and December, 2022
shipment for 500 MT each. The aforesaid sale contracts
bearing Nos. CLV-SEP/2022-2023/313, CLV-SEP/2022-
2023/314 AND CLV-SEP/2022-2023/315 were
received by the plaintiff at its registered office at 1, R. N.
Mukherjee Road, Martin Burn Building, 3rd Floor, Room-
302, Kolkata-700 001, within the jurisdiction aforesaid.
It is evident that the said contracts referred to the
shipment for every month and parties agreed that lifting
of materials would be done within 10 days from Port
Health Organization Clearance. Copies of the e-mail
dated September 13, 2022 along with the sales
contracts are annexed hereto and collectively marked
with the letter "A".
8. On the basis of the aforesaid contract all dated
September 13, 2022, the plaintiff agreed for commercial
terms for the October 2022 shipment & November, 2022
shipments vide agreement dated November 17, 2022
and November 24, 2022 respectively The said IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
agreements were signed and executed by the plaintiff at
its registered office of the plaintiff at 1, R. N. Mukherjee
Road, Martin Burn "Building, 3rd Floor, Room-302,
Kolkata-700 001, within the aforesaid jurisdiction.
Copies of the Agreements dated November 17, 2022 and
November 24, 2022 are annexed hereto and marked
with the letters "B" and "C" respectively.
14. From the very outset, there had been a delay at the
end of the defendant in keeping its obligations in
providing the shipment of CDSBO. Therefore, the
plaintiff on repeated occasions reminded the defendant
that time was of the essence and requested the
defendant to acknowledge the timeline and provide the
shipment as per agreed time frame. E-mails have been
issued by the plaintiff from its registered office at 1, R.
N. Mukherjee Road, Martin Burn Building, 3rd Floor,
Room-302, Kolkata-700 001, within the jurisdiction
aforesaid, to the defendant requesting the defendant to
oblige the terms and to provide the shipment within the
specified time frame. Copies of the e-mails sent by the
Plaintiff are annexed hereto and collectively marked
with the letter "E"
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
12. In the matter of: A.B.C. LAMINARAT PVT. LTD AND
ANOTHER (supra), the Honb'le Supreme Court had observed as
stated below :
"15 In the matter of a contract there may arise
causes of action contract was made or at the place
where it should have been performed and the
breach occurred. The making of the contract is part
of the cause of action. A suit on a contract,
therefore, can be filed at the place where it was
made. The determination of the place where the
contract was made is part of the law of contract.
But making of an offer on a particular place does
not form cause of action in a suit for damages for
breach of contract. Ordinarily, acceptance of an
offer and its intimation result in a contract and
hence a suit can be filed in a court within whose
jurisdiction the acceptance was communicated. The
performance of a contract is part of cause of action
and a suit in respect of the breach can always be
filed at the place where the contract should have
been performed or its performance completed. If the
contract is to be performed at the place where it is
made, the suit on the contract is to be filed there
and nowhere else. In suits for agency actions the IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
cause of action arises at the place where the
contract of agency was made or the place where
actions are to be rendered and payment is to be
made by the agent. Part of cause of action arises
where money is expressly or impliedly payable
under a contract. In cases of repudiation of a
contract, the place where repudia-tioh is received is
the place where the suit would lie. If a contract is
pleaded as part of the cause of action giving
jurisdiction to the court where the suit is filed and
that contract is found to be invalid, such part of
cause of the action disappears. The above are some
of the connecting factors."
13. In a suit for damages for breach of contract, the cause of
action consists of making of the contract and of its breach,
amongst others. Therefore, the place where the contract has been
made or the breach has been alleged would have territorial
jurisdiction to entertain the suit and to try it. This is not a case of
repudiation of contract, as the plaint case goes.
14. This specific averment, made in the plaint, as quoted above
would clearly demonstrate that the contract was made and
executed at the office of the plaintiff within the jurisdiction and
the alleged breach notified by the plaintiff from its office within the
jurisdiction of this Court.
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
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15. Accordingly, this Court has no hesitation to hold that the suit
can be entertained and tried before this Court.
16. It is also made clear that this Court has not expressed any
opinion on the merits of the claim and rival claim of the parties in
the suit and all points shall be kept open for trial.
17. Resultantly, this application fails and IA GA-COM/4/2025
stands dismissed, without any order as to costs.
In Re: IA GA-COM/3/2025
18. This is an application filed by the defendant praying for
revocation of leave granted in clause 12 of the Letters Patent.
19. Since the application IA GA-COM/4/2025 filed by the
defendant praying for return of plaint has been dismissed with
reasons after hearing the parties in detail, this Court is of the
considered view that no further point remains to be decided in this
application considering the nature of reliefs claimed herein.
20. In view of the above, the instant application GA-COM/3/2025
stands dismissed without any order as to costs.
(ANIRUDDHA ROY, J.)
Arsad
IA NO. GA-COM/3/2025, IA NO. GA-COM/4/2025 In CS-COM/10/2024
A.R., J.
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