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Bombay High Court

THE BARODA RAYON CORPORATIONversusTHERMAX LTD

Decided
Disposal
Dismissed

Holding

The Court held that the City Civil Court possessed territorial jurisdiction and the petition to set aside the order dismissing the notice of motion was dismissed.

Summary

The Baroda Rayon Corporation Ltd. filed a writ petition challenging a City Civil Court order that dismissed its notice of motion seeking dismissal of a commercial suit on the ground of lack of territorial jurisdiction. The suit, instituted in 1999, concerned recovery of Rs. 1,70,81,436 from Thermax Ltd. for delivery of heat‑fluid heaters, with the purchase order placed in Pune, delivery in Surat and the defendant's registered office in Gujarat. The defendant argued that the Mumbai court lacked jurisdiction, raising the objection after more than 25 years and after filing a counter‑claim. The High Court held that an objection to territorial jurisdiction must be raised at the earliest stage, that the belated notice was a tactic to delay, and that the plaintiff’s pleadings showed business activities in Mumbai, establishing jurisdiction. Consequently, the petition was dismissed and no further costs were imposed.

Issues considered

  • Whether the City Civil Court in Mumbai had territorial jurisdiction to entertain the commercial suit.
  • Whether an objection to jurisdiction can be raised after a prolonged delay of 25 years.
  • Whether the filing of a counter‑claim defeats the defendant's claim of lack of jurisdiction.
  • Whether a suit can be dismissed at the threshold for want of territorial jurisdiction.

Subjects

  • territorial jurisdiction
  • civil procedure
  • notice of motion
  • delay
  • counter‑claim
  • commercial suit
  • jurisdictional objection

Judgment

                                                                             8-WP-12650-2025.DOC




                             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                       CIVIL APPELLATE JURISDICTION
                                     WRIT PETITION NO. 12650 OF 2025


                   The Baroda Rayon Corporation Limited                          ..Petitioner
                        Versus
                   Thermax Limited                                            …Respondent

                   Mr. N.R. Pradhan, for the Petitioner.

                                                 CORAM:          N. J. JAMADAR, J.
                                                 DATE :          18th AUGUST 2026


                   ORDER:

                   1.    Heard Mr. N. R. Pradhan, the learned Counsel for the Petitioner.

                   2.     The challenge in this Petition is to an order dated 28th July 2025,

                   whereby the learned Judge, City Civil Court, dismissed the Notice of

                   Motion taken out by the Petitioner-Defendant in Commercial Suit No.

                   94 of 2024 (Old High Court Commercial Summary Suit No. 8 of 1999)

                   for dismissing the Suit for want of jurisdiction.

SAINATH            3.    The Respondent-Plaintiff had sold and delivered to the Defendant
SANJAY
BODKHE
Digitally signed   two 2.8 mkcal/hr heat capacity, TP-28 model Thermic fluid heater and
by SAINATH
SANJAY BODKHE
Date: 2026.08.24
20:42:28 +0530
                   the various parts of the said heaters pursuant to the purchase orders

                   placed by the Defendant, and the invoices and the bills raised by the

                   Plaintiff. Towards the said liability, an amount of Rs. 1,70,81,436/-

                   remained outstanding. The Plaintiff thus instituted the suit for recovery
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of the outstanding amount alongwith interest at the rate of 20% per

annum, in the year 1999.

4.     In the year 2025, the Defendant took out the Notice of Motion

seeking the dismissal of the suit inter alia on the ground that no part of

cause of action had arisen within the local limits of the territorial

jurisdiction of the City Civil Court at Mumbai as the purchase order was

placed at Pune and the equipments were delivered at Fatehnagar, Surat,

Gujarat and that the registered office of the Defendant was also located

at Fatehnagar, Gujarat.

5.     By the impugned order, the learned Judge, City Civil Court was

persuaded to dismiss the Notice of Motion observing inter alia that the

objection as to the territorial jurisdiction was taken at a belated stage

and that too after filing a counter-claim. The Notice of Motion was

taken out to further delay the disposal of the Suit which awaited

adjudication more than 25 years.

6.     Mr. Pradhan, the learned Counsel for the Petitioner, made an

endeavour to demonstrate that the learned Judge, City Civil Court has

not kept in view the correct principles in determining the aspect of the

territorial jurisdiction of the City Civil Court to entertain, try and decide

the suit.

7.     The submissions on behalf of the Petitioner deserve to be noted to

be repelled, for the reasons more than one. Firstly, under no


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                                                           8-WP-12650-2025.DOC

circumstances, a suit can be dismissed for want of territorial jurisdiction

at the threshold. Secondly, the filing of the counter-claim by the

Defendant runs counter to the contention of the Defendant that the City

Civil Court has no jurisdiction to entertain, try and decide the suit.

Thirdly, it is well-recognized, an objection as to the territorial

jurisdiction of the Court is required to be taken at the earliest possible

opportunity. The Notice of Motion was taken out by the Defendant after

more than 25 years of the institution of the suit when it was posted for

the cross-examination of the Plaintiff’s witnesses. The delay is simply

inordinate. Lastly, at any rate, in paragraph 17 of the Plaint, the Plaintiff

has made averments to the effect that the bills were raised on the

Defendant at Mumbai, and the Defendant was carrying on business for

gain at Mumbai.

8.    Therefore, at this length in time, this Court does not find any

justifiable reason to interfere with the impugned order.

9.    The Petition thus stands dismissed.

10.   Since the learned Judge, City Civil Court has imposed a

substantial costs of Rs. 1,00,000/-, this Court refrains from imposing

further costs.

                                              [N. J. JAMADAR, J.]




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