SUPREME COURT OF INDIA

Before:-V.N. Khare and Brijesh Kumar, JJ.

Civil Appeal No. 8078 Of 2001. (Arising out of S.L.P.(C)No. 2169/2001) D/d. 26.11.2001.

Arun Agarwal - Appellant

Versus

Nagreeka Exports (P) Ltd. & Anr. - Respondent

Civil Procedure Code, 1908, Order 14, Rule 2(2)(a) - Preliminary issue- Jurisdiction of the Court - Plaintiff/respondents filed suit with leave under Clause XII of letters Patent before the High Court of Calcutta on its original side for recovery of money - Appellant filed a petition for revocation of leave on the ground that the Court had no jurisdiction to entertain and decide the matter - High Court held that question in relation to jurisdiction shall be decided at the hearing of the suit - Appeal to Supreme Court - Held- Question regarding jurisdiction of the Court was required to be decided as preliminary issue.

[Para 3]

JUDGMENT

Leave granted.

2.The plaintiff-respondents herein filed a suit with leave under Clause XII of Letters Patent before the High Court of Calcutta on its original side for recovery of Rs. 87,20,000/- from the defendant-appellant herein. In the said suit, the plaintiff-respondents moved an application under Chapter XIIIA of the Rules for summary disposal of the suit. The appellant filed a petition for revocation of leave. The appellant took an objection that the Court has no jurisdiction to entertain and decide the matter. The High Court in its original side held that the question relating to jurisdiction shall be decided at the hearing of the suit. However, the High Court directed the appellant to furnish security for a sum of Rs. 55 lakhs by way of bank guarantee failing which there will be a decree for the principal amount of Rs. 55 lakhs. It is against the said judgment, the defendant-appellant is in appeal before us.

3. Heard counsel for the parties. We are of the view that the question regarding the jurisdiction of the Court was required to be decided as a preliminary issue.We, therefore, set aside the order under challenge and send the case back to the High Court to decide the question of jurisdiction of the Court as a preliminary issue. The order passed by the High Court directing the defendant-appellant to furnish security for a sum of Rs. 55 lakhs by way of bank guarantee shall remain suspended till the said question pertaining to jurisdiction of the Court is decided by the High Court. In case, it is held by the High Court that the Court has jurisdiction, the direction to furnish security for a sum of Rs. 55 lakhs shall come in operation. The appeal is disposed of in the aforesaid terms.

4. There shall be no order as to costs.

Appeal allowed.