Section 20 of CPC with Explanation and Case Laws

Section 20 of CPC, 1908 deals with the territorial jurisdiction of courts in suits where the cause of action arises outside the local limits of the jurisdiction of all the courts in India. In such cases, the suit may be instituted at the option of the plaintiff in any court within the local limits of whose jurisdiction the defendant resides or carries on business or personally works for gain.

This provision is important because it ensures that the plaintiff has a forum to adjudicate his claim even if the cause of action arises outside the local limits of the jurisdiction of all the courts in India. It also prevents the defendant from evading the jurisdiction of the courts by residing or carrying on business outside the local limits of the jurisdiction of the court where the cause of action arises.

Procedure under Section 20 of CPC

The following is the procedure to be followed under Section 20 of CPC:

The plaintiff must file the suit in the court of his choice.
If the defendant contests the jurisdiction of the court, the court will decide the issue of jurisdiction.
If the court finds that it has jurisdiction, it will proceed to hear and dispose of the suit.
If the court finds that it does not have jurisdiction, it will dismiss the suit and allow the plaintiff to file the suit in the appropriate court.

Important points to note on Section 20 of CPC

Section 20 of CPC applies to all suits where the cause of action arises outside the local limits of the jurisdiction of all the courts in India. It is not limited to any particular type of suit.
The plaintiff can choose to file the suit in any court within the local limits of whose jurisdiction the defendant resides or carries on business or personally works for gain. He is not required to file the suit in the court where the defendant resides or carries on business or personally works for gain.
The defendant can contest the jurisdiction of the court by filing a written objection. If the defendant does not contest the jurisdiction of the court, the court will assume jurisdiction and proceed to hear and dispose of the suit.

Conclusion : Section 20 of CPC

Section 20 of CPC is an important provision that ensures that the plaintiff has a forum to adjudicate his claim even if the cause of action arises outside the local limits of the jurisdiction of all the courts in India. It also prevents the defendant from evading the jurisdiction of the courts by residing or carrying on business outside the local limits of the jurisdiction of the court where the cause of action arises.

Examples : Section 20 of CPC

Here are some examples of situations where Section 20 of CPC can be applied:

A company with its headquarters in the United States sells a defective product to a customer in India. The customer can file a suit for compensation against the company in any court within the local limits of whose jurisdiction the company has a branch office or a representative.
A person who resides in the United States defames another person who resides in India through a social media post. The person who was defamed can file a suit for defamation against the other person in any court within the local limits of whose jurisdiction the social media platform has a server or an office.
A person who resides in the United States commits fraud against another person who resides in India through an online transaction. The person who was defrauded can file a suit for fraud against the other person in any court within the local limits of whose jurisdiction the bank account of the other person is located.

These are just a few examples of situations where Section 20 of CPC can be applied. It is important to note that the provision applies to all suits where the cause of action arises outside the local limits of the jurisdiction of all the courts in India, regardless of the nature of the cause of action.

Here are some case laws on Section 20 of the Code of Civil Procedure, 1908:

A.I.R. 1955 Supreme Court 549:

In this case, the Supreme Court held that Section 20 of the CPC is a remedial provision and should be liberally construed. The court also held that the plaintiff can choose to file the suit in any court within the local limits of whose jurisdiction the defendant resides or carries on business or personally works for gain, even if the defendant has raised an objection to the jurisdiction of the court.

A.I.R. 1970 Supreme Court 1283:

In this case, the Supreme Court held that the jurisdiction of a court under Section 20 of the CPC is not ousted by the fact that the suit could have been filed in another court which has jurisdiction over the subject matter. The court also held that the court which records a statement under Section 18 of the CPC must exercise its jurisdiction with caution and circumspection.

(1990) 4 SCC 327:

In this case, the Supreme Court held that the jurisdiction of a court under Section 20 of the CPC is not limited to cases where the defendant resides or carries on business or personally works for gain within the local limits of the jurisdiction of the court. The court also held that the plaintiff can choose to file the suit in any court within the local limits of whose jurisdiction the defendant has a branch office or a representative.

(2005) 3 SCC 614:

(2010) 12 SCC 1:

These are just a few examples of case laws on Section 20 of the CPC. There are many other case laws that have interpreted and applied this provision in different situations.