7. Which of the following is correct statement in so far as section 20 of the Code of Civil Procedure, 1908, is concerned?
(a) the suit has to be instituted in the Court of the lowest grade competent to try it
(b) The suit has to be instituted in the Court within the local limits of whose jurisdiction the defendant actually and voluntarily resides or carries on business
or personally works for gain
(c) The suit has to be instituted in the Court within the local limits of whose jurisdiction, the cause of action wholly or in part arises
(d) All the above are correct
Answer and NotesAnswer is A
Explanation: This question was deleted by the High Court.
17. A is a furniture producer at Saharanpur. B carrries on business at Varanasi. B through his agent at Saharanpur, buys hundred chairs from A and requires A to deliver them to C at Saharanpur. B fails to pay the price of the chairs purchased.
(a) A may file suit only at Saharanpur
(b) A may file suit only at Varanasi
(c) A may file suit either in Saharanpur or at Varanasi
(d) A may file a civil suit at Lucknow being capital "of the Uttar Pradesh
Answer and NotesAnswer is C
Explanation: In this problem the place of contract is Saharanpur therefore, the cause of action arose at Saharanpur. It must be noted that ï¿½B" carried on business at Varanasi but in this particular instance "B" contracted through his agent at Saharanpur. Since the Principal is deemed to act through his agent, therefore, he is deemed to carryon his business through his agent at Saharanpur. Now, if we apply section 20 of Code of Civil Procedure the position of law vis-a-vis given situation is that suit can be instituted either where cause of action arose or where the defendant carries on his business. Contract was made in Saharanpur so the cause of action was at Saharanpur. Defendant "B" carried on his business at Varanasi.Therefore, the suit can be instituted at Saharanpur or at Varanasi.