Thursday, September 18, 2014

Suits for Compensation for Wrongs to Person or Movables: Section 19, CPC, 1908

Section 19 of the Code of Civil Procedure, 1908 (“Code”) allows a court to entertain a suit for ‘compensation’ where wrong is done to the person or to movable property.  At the outset, it should be understood that if a suit is regulated by the provisions of section 19, the provisions of section 20 of the Code would not come into operation.[1] For the applicability of section 19, two conditions needs to be satisfied: (i) wrong is done within jurisdiction a one court, and (not ‘or’) (ii) defendant resides (or carries on business, or personally works for gain) within the jurisdiction of other court. The conjunction "and" in the qualifying clause leaves aside the cases  where both the conditions  together are not available; in such matters, suits are governed by other provisions of the Code.[2] When these conditions are satisfied, at the option of the plaintiff, either of the courts can entertain the suit for compensation.

For the purpose of interpretation of the section, one of the most important issues is the meaning of the phrase ‘wrong done’, i.e., when can it be said that some wrong is done by the defendant? According to the Bombay High Court (Nagpur Bench), phrase ‘wrong done’ take in not only the initial action complained but also the resultant effect.[3] The Court  within whose  local  jurisdiction  damage  was  caused  or  suffered  or  sustained  would  clearly  answer  the requirements  of  Section  19  for  the  purpose  of  suits  mentioned  therein. For instance, when wrongful action of defendant takes place within the jurisdiction of one court, and the plaintiff is affected by that action for all purposes in his business within the jurisdiction of other Court.

Sections 19 & 20(a) and (b) of CPC do not allow one to confer territorial jurisdiction on a court simply on the ground that the one is living at a particular place.[4] Moreover, there being no other choice available to the litigant who wishes to seek such compensation, he cannot whittle down the express prescription in S. 19, C.P.C, and lay emphasis on the oral evidence casually let in by him so as to create or vest jurisdiction in the court, which has none.[5]

The wrong within the meaning of Section 19 of the CPC in an action for defamation is done by the publication.[6] Hence, the publication in the sense of a libel is not the mechanical act of printing of the magazine but is of communication of the libelous article to at least one person other than the plaintiff or the defendant. It has been opined by the Allahabad High Court that a corporation shall be deemed to carry on business at its sole or principal office in India or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place.[7] For coming to this conclusion, the court had referred explanation to section 20 of the Code and opined that:

“.......A corporation shall be deemed to carry on business at its sole or principal office in India or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place. This has been clarified in Explanation II to Section 20 of the CPC though it is not laid down that the Explanation shall apply to other sections also. The provisions thereof can usefully be applied while interpreting similar words used in Section 19 of the CPC. It is thus in respect of the cause of action arising at a place that the corporation shall be deemed to carry on business at a place where it has a subordinate office; but if the cause of action did not arise there, the existence of a subordinate office shall not entitle the plaintiff to institute a suit at any place of his choice.....”

Having understood the significance of section 19, as also of the phrase ‘wrong done’, it would now be important to know what happens when there are more than one defendant. In connection to this, it has been opined by the Madras High Court that where there are more defendants than one and some of such defendants stay within the jurisdiction of the Court and other stay beyond such jurisdiction, Section 19 may not be applicable. On the other hand, Section 20(b) may be applicable.[8] What does this mean? Does it mean that where defendants stay within the jurisdiction of the same court, section 19 would be applicable? Section 19 should be applicable in such case unless there are good reasons for a contrary position (I might have missed out a case-law on this point).

So, what we understood from this post? First, where section 19 is applicable, section 20 will have no application. Second, phrase ‘wrong done’ is wide enough to take into its ambit not only the place where wrongful act is done but also the place where damage is suffered. Third, territorial jurisdiction cannot be artificially conferred on a court. And fourth, section 19 would not be applicable where there are more than one defendant, and some of them stay beyond the jurisdiction of the court.




[1] State of Meghalaya v. Jyotsna Das, AIR 1991 Gau 96, 98
[2] The State of Maharashtra v. Sarvodaya Industries, AIR 1975 Bom 197
[3] The State of Maharashtra v. Sarvodaya Industries, AIR 1975 Bom 197: 1974 MhLJ 966; See also Mallikarjun Transport v. Dr. Babasaheb Ambedkar Sahakari Sakhar Karkhana Ltd, 2010 SCC OnLine Bom 400 : (2010) 5 Mah LJ 547
[4] Hindustan Fertilizer Corporation Ltd. v. The Great Eastern Shipping Co. Ltd, (1998) 46 DRJ 344, 348-49
[5] Sreepathi Hosiery Mills (P) Ltd. v. Chitra Knitting Co., (1977) 90 LW 350 : AIR 1977 Mad 258
[6] M/S Frank Finn Management Consultants v. M/S Subhash Motwani & Anr., ILR (2009) 2 Del 158, 168-69
[7] The State of U.P.  and Others v. Raja Ram Lal, AIR 1966 All 159, 160-61
[8] V. Selladurai v. N Nethaji, (2006) 4 LW 343, 348

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