Section 20 of Code of Civil Procedure 1908 "Other suits to be instituted where defendants reside or cause of action arises"
Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction
(a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or
(b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally works for gain, as aforesaid, acquiesce in such institution; or
(c)The cause of action, wholly or in part, arises.
1**** *
2[Explanation].- A corporation shall be deemed to carry on business at its sole or principal office in 3 [India] or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place.
Illustrations
(a) A is a tradesman in Calcutta, B carries on business in
Delhi. B, by his agent in Calcutta, buys goods of A and
requests A to deliver them to the East Indian Railway
Company. A delivers the goods accordingly in Calcutta. A may
sue B for the price of the goods either in Calcutta, where
the cause of action has arisen, or in Delhi, where B carries
on business.
(b) A resides at Simla, B at Calcutta and C at Delhi. A, B and C being together at Benaras, B and C make a joint promissory note payable on demand, and deliver it to A. A may sue B and C at Benaras, where the cause of action arose. He may also sue them at Calcutta, where B resides, or at Delhi, where C resides; but in each of these cases, if the non-resident defendant objects, the suit cannot proceed without the leave of the Court.
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1. Explanation 1 omitted by Act 104 of 1976, s. 7 (w.e.f. 1-2-1977).
2. Subs. by s. 7, ibid., for "Explanation II" (w.e.f. 1-2-1977).
3. Subs. by Act 2 of 1951, s. 3 for "the States" (w.e.f. 1-2-1977).