Section 20 of CPC : Section 20: Other suits to be instituted where defendants reside or cause of action arises.

Explanation using Example

Example 1:

Scenario: Ramesh, a businessman in Mumbai, sells goods to Suresh, who runs a shop in Bangalore. Suresh places an order through his agent in Mumbai and requests Ramesh to deliver the goods to a transport company in Mumbai. Ramesh delivers the goods as requested but Suresh fails to pay for them.

Application of Section 20:

• Ramesh can file a suit against Suresh in Mumbai because the cause of action (delivery of goods) arose in Mumbai.
• Alternatively, Ramesh can also file the suit in Bangalore where Suresh carries on his business.

Example 2:

Scenario: Priya, residing in Chennai, lends money to Raj, who lives in Hyderabad, and Kiran, who lives in Pune. They all meet in Goa and Raj and Kiran jointly sign a promissory note promising to repay the loan on demand.

Application of Section 20:

• Priya can file a suit against Raj and Kiran in Goa where the promissory note was signed and the cause of action arose.
• Priya can also choose to file the suit in Hyderabad where Raj resides or in Pune where Kiran resides.
• However, if either Raj or Kiran objects to the suit being filed in a location where they do not reside, the suit cannot proceed without the leave of the Court.

Example 3:

Scenario: Anil, who lives in Jaipur, orders a custom-made piece of furniture from Sunil, who operates a workshop in Ahmedabad. Sunil delivers the furniture to Anil in Jaipur, but Anil refuses to pay the agreed price.

Application of Section 20:

• Sunil can file a suit against Anil in Jaipur where Anil resides.
• Sunil can also file the suit in Ahmedabad where he carries on his business and where the cause of action (contract for the furniture) partially arose.

Example 4:

Scenario: Meera, residing in Kochi, enters into a contract with Neha, who lives in Kolkata, for the supply of handmade crafts. The contract is signed in Mumbai where both parties were attending a trade fair.

Application of Section 20:

• Meera can file a suit against Neha in Mumbai where the contract was signed and the cause of action arose.
• Meera can also file the suit in Kochi where she resides or in Kolkata where Neha resides.
• If Neha objects to the suit being filed in Kochi, the suit cannot proceed without the leave of the Court.

Example 5:

Scenario: Vikram, who lives in Lucknow, hires a contractor, Arjun, who resides in Chandigarh, to renovate his house. The renovation work is to be carried out in Lucknow. Arjun fails to complete the work as per the contract.

Application of Section 20:

• Vikram can file a suit against Arjun in Lucknow where the cause of action (renovation work) arose.
• Vikram can also file the suit in Chandigarh where Arjun resides.