Recovery suit.
VENKATESH HEGDE
(Querist) 06 January 2012
This query is : Resolved
Dear Experts,
I have a confusion regarding the territorial jurisdiction of institution of suit. If a suit for money recovery from the company against the franchise in another state where is the right place? These are some of the facts :
1. Corporate office is Bangalore.Regional office is Ernakulum. According to the franchise Agreement Arbitration Clause is there & place of jurisdiction is Bangalore only.
2. Franchise is defaulter, in such cases company can file the money recovery suit against that franchise directly in place of business Bangalore/ Ernakulum ? or file a petition as per the Arbitration Act to appoint as arbitrator in Bangalore Court?
3. If company files recovery suit in Ernakulum court hiding that arbitration clause & it is not questioned by the defendant because of the jurisdiction is Bangalore,than whats is the legal consequences?
prabhakar singh
(Expert) 06 January 2012
If the Arbitration Clause covers the subject matter of dispute then file a petition as per the Arbitration Act to appoint as arbitrator in Bangalore Court,if no arbitrator named in agreement.The crux is to do as provided in agreement.
Raj Kumar Makkad
(Expert) 06 January 2012
It is the defendant who can disclose the arbitration clause and if he do not object then you can continue your suit at Ernakulam otherwise it shall be better to avail the jurisdiction of Arbitrator at Bangluru.
VENKATESH HEGDE
(Querist) 06 January 2012
Thanks for all, i have also the same opinion as makkad sir .
Sushil Sharma
(Expert) 06 January 2012
i have also the same opinion as Makkad Sir .
prabhakar singh
(Expert) 06 January 2012
What when you file the suit,pay court fees and arbitration clause is invoked??
VENKATESH HEGDE
(Querist) 06 January 2012
Sing sir, Good question,.. if we file the arbitration petition in Bangalore court, if is not attended or ex party than whats the remedy ? because that franchise is in ernakulum. We have the Place of business there. The main issue is payment of money. he already left the business & not ready to pay the money.If we filed the suit in Bangalore remedy is only exparty of both the suits.If its exparty advantage is exparty Execution again transfer of execution to ernakulum.. (if he will not appeared for the proceedings only )
Raj Kumar Makkad
(Expert) 07 January 2012
For obtaining ex-parte judgment, you need to follow the same process. Ex-parte decree can also be executed if JD has something for recovery.
