Showing posts with label Compensation. Show all posts
Showing posts with label Compensation. Show all posts

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.