Section 20 of CPC : Section 20: Other Suits To Be Instituted Where Defendants Reside Or Cause Of Action Arises

Explanation using Example

Imagine that Mr. Sharma, who lives in Mumbai, enters into a contract with Ms. Gupta, who resides in Hyderabad, to buy a batch of custom furniture. According to the contract, Ms. Gupta will manufacture the furniture in Hyderabad and deliver it to Mr. Sharma's address in Mumbai.

After Ms. Gupta delivers the furniture, Mr. Sharma discovers that the furniture is not as per the specifications agreed upon and refuses to pay the full amount, paying only half. Ms. Gupta wants to sue Mr. Sharma for the remaining balance.

Under Section 20 of The Code of Civil Procedure, 1908, Ms. Gupta has the option to file the suit in Mumbai, where Mr. Sharma resides and where part of the cause of action (non-payment) arose, or in Hyderabad, where she carries on her business and where the furniture was manufactured, which is also part of the cause of action.