High Court Of Delhi Held That Delhi Courts Would Have Territorial Jurisdiction In A Recovery Suit Where Part Of The Cause Of Action Arose In Delhi

The High Court of Delhi, through its judgment dated 20.05.2026 in the matter of GAC Logistics Pvt. Ltd. v. Acer Logistics Pvt. Ltd., ¹ inter alia, held that under Section 20(c) of the Code of Civil Procedure, 1908 (“CPC”), even if part of the cause of action arises within the territorial jurisdiction of a court, such court would have jurisdiction to entertain the suit.

The issue before the Court was whether the Trial Court had erred in returning the plaint under Order VII Rule 10 of CPC on the ground of lack of territorial jurisdiction despite the plaintiff pleading that parts of the cause of action had arisen in Delhi.

The Court held that the pleadings, documents and unrebutted evidence on record clearly established that part of the cause of action had arisen within Delhi, as consignments were handed over in Delhi, payments and dishonoured cheques were received and presented in Delhi, and the defendant’s registered office was situated in Delhi. The Court further reiterated that while considering an application under Order VII Rule 10 of CPC, the Court must proceed on the basis of the averments in the plaint and documents relied upon by the plaintiff, assuming them to be correct. Accordingly, the appeal was allowed and the suit was restored to its original position before the Trial Court.

Footnote

^{1 FAO 371 of 2024}

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