Section 20 CPC: Where Civil Suits May Be Instituted
Section 20 of the Code of Civil Procedure, 1908 (CPC) determines the territorial court in which certain civil suits may be filed, taking account of where the defendant resides or carries on business and where the cause of action arises.
Text of Section 20 CPC
20. Other suits to be instituted where defendants reside or cause of action arises. Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction -
(a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or
(b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
Explanation. 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.
Meaning and scope of Section 20
Section 20 is a residual rule for the place of suing. It operates subject to preceding jurisdiction provisions, particularly the special rules for immovable property and compensation for wrongs to persons or movable property. A court must also possess the required subject-matter and pecuniary jurisdiction. Section 20 does not, by itself, confer jurisdiction over a matter excluded by another law.
Clause (a): Where every defendant resides or does business
Where there is a single defendant, a suit may ordinarily be brought where that defendant actually and voluntarily resides, carries on business, or personally works for gain. With multiple defendants, clause (a) applies where each defendant satisfies the relevant territorial connection with the chosen court.
Clause (b): Multiple defendants in different places
Where only one or some defendants have the required connection with the proposed forum, the plaintiff may rely on clause (b) if the court grants leave or the other defendants acquiesce in institution of the suit. Merely naming a local defendant does not eliminate the statutory requirements.
Clause (c): Where the cause of action arises
A cause of action means the bundle of material facts which the plaintiff must prove to obtain the relief claimed. If a material part of those facts arises within a court's territorial limits, clause (c) may provide a forum. A trivial or unrelated event is not sufficient merely because it occurred there.
Corporations, principal offices and branch offices
The Explanation addresses the deemed place of business of corporations. Its operation must be read with the location of the cause of action: a corporation's subordinate office does not automatically make every branch location a permissible forum for every dispute. The Supreme Court considered this distinction in Patel Roadways Ltd. v. Prasad Trading Co., (1991) 4 SCC 270.
Statutory illustrations explained
Illustration (a): Sale of goods
A tradesman in Calcutta sells goods to a buyer carrying on business in Delhi. The buyer, through an agent in Calcutta, asks the seller to deliver the goods to the railway company there. The seller may sue for the price in Calcutta, where the cause of action arose, or Delhi, where the buyer carries on business.
Illustration (b): Joint promissory note
A resides in Simla, B in Calcutta and C in Delhi. While together at Benaras, B and C execute and deliver a joint promissory note to A. A may sue B and C at Benaras, where the cause of action arose. A may also sue in Calcutta or Delhi, subject to the leave or acquiescence requirements of clause (b) for the non-resident defendant.
Practical application
- Contract dispute: Determine where material contractual obligations arose or were to be performed, and where the defendant resides or does business.
- Multiple defendants: Check whether all defendants share a forum; otherwise consider clause (b) and its conditions.
- Corporate defendant: Examine the principal office, relevant subordinate office and the place where the cause of action arose.
- Property litigation: First check Section 16 CPC and related special rules instead of assuming Section 20 applies.
Related legal provisions
Section 15 CPC requires institution in the lowest-grade competent court. Section 19 CPC concerns suits for compensation for wrongs to the person or movable property. Section 21 addresses objections to the place of suing, subject to its conditions. Contractual forum-selection clauses may select among otherwise competent courts, but generally cannot confer jurisdiction on a court that otherwise lacks it.
Frequently asked questions
Can a plaintiff sue wherever they live?
Not merely because the plaintiff lives there. A territorial connection recognized by Section 20 or another applicable provision must exist.
Can a suit be filed where only part of the cause of action arose?
Yes, under clause (c), if that part consists of material facts forming the cause of action and no overriding legal restriction applies.
Does Section 20 apply to every civil suit?
No. It is expressly subject to the preceding limitations and any applicable special statute.
Official legal resources
Read the Code of Civil Procedure, 1908 on India Code and consult the Legislative Department for official legislative information. For judgments, consult the Supreme Court of India.