Power to transfer suits which may be instituted in more than one Court.

Power to Transfer Suits Which May Be Instituted in More Than One Court (Section 22-25, CPC, 1908)

The Civil Procedure Code, 1908 (CPC) provides a robust framework for the adjudication of civil disputes in India. A common issue arises when a suit can be validly instituted in multiple courts. To avoid conflicting judgments, ensure convenience to parties, and promote efficiency, the CPC incorporates provisions empowering superior courts to transfer such suits. Sections 22 to 25 of the CPC specifically deal with the power to transfer suits that can be instituted in more than one court. This article delves into these sections, analyzing their provisions and relevant legal principles.

Section 22: Power to Transfer Suit to One of Several Courts Having Jurisdiction

Section 22 of the CPC addresses the situation where a suit may be instituted in any one of two or more courts and the plaintiff chooses to institute the suit in one such court. The section provides the defendant with the right to apply to the court to which the suit is brought, requesting a transfer to another court.

Key Elements of Section 22:

Multiple Courts with Jurisdiction: The section applies only when two or more courts possess the jurisdiction to entertain the suit. Jurisdiction is determined by factors such as the location of the defendant, the place where the cause of action arose, or the location of the property involved in the dispute.
Defendant's Application: The right to apply for transfer lies solely with the defendant. The plaintiff, having already chosen the court, cannot invoke Section 22.
Reasonable Opportunity to be Heard: Before transferring the suit, the court must give the other parties involved (primarily the plaintiff) notice of the application and a reasonable opportunity to be heard. This ensures fairness and allows all parties to present their arguments for or against the transfer.
Considerations for Transfer: The court, in deciding whether to transfer the suit, considers factors such as:
- Convenience of Parties: The primary consideration is the convenience of the parties involved, particularly the defendant and witnesses.
- Cost of Litigation: The court assesses the potential cost of litigation in different courts, aiming to minimize expenses for all parties.
- Balance of Convenience: The court strives to achieve a balance of convenience, weighing the advantages and disadvantages of transfer for all parties involved.
Timing of Application: The application for transfer under Section 22 must be made at the earliest possible opportunity and, in all cases where issues are settled, at or before such settlement. Delay in making the application may result in its dismissal.
Court to Which Application is Made: The application must be made to the court in which the suit is initially instituted by the plaintiff.

Illustrative Example:

Suppose a contract is entered into between A, residing in Delhi, and B, residing in Mumbai, with the contract specifying performance in Chennai. A, the plaintiff, files a suit for breach of contract in the Delhi court. B, the defendant, can apply to the Delhi court under Section 22, seeking a transfer of the suit to the Chennai court based on the place of performance and his convenience in attending hearings in Chennai. The Delhi court will then consider A's objections and decide whether to transfer the suit.

Section 23: To What Court Application Lies

Section 23 clarifies which High Court or District Court has the authority to hear applications for transfer under Section 22. It lays down rules based on the hierarchy of courts involved.

Sub-sections of Section 23:

Section 23(1): Where the several courts referred to in Section 22 are subordinate to the same Appellate Court, an application under Section 22 shall be made to the Appellate Court. In essence, if the courts where the suit could have been instituted are all under the same High Court, the application for transfer goes to that High Court.
Section 23(2): Where such courts are subordinate to different Appellate Courts, but to the same High Court, the application shall be made to the said High Court. This addresses situations where different District Courts under the same High Court have jurisdiction. The transfer application is then made to the High Court.
Section 23(3): Where such courts are subordinate to different High Courts, the application shall be made to the High Court within whose jurisdiction the court in which the suit is brought is situate. This is crucial when the courts are under different High Courts. The application for transfer goes to the High Court overseeing the court where the plaintiff initially filed the suit.

Example:

Suppose a suit can be filed in Court A (under High Court X) or Court B (under High Court Y). The plaintiff files in Court A. The defendant, wanting a transfer, applies under Section 22. Section 23(3) dictates that the application must be made to High Court X, as Court A falls under its jurisdiction.

Section 24: General Power of Transfer and Withdrawal

Section 24 provides a broad power to High Courts and District Courts to transfer or withdraw suits, appeals, or other proceedings, even if Section 22 does not apply. This section grants wider discretionary powers to the courts for the administration of justice.

Key Powers under Section 24:

Transfer Power: The High Court or the District Court may, at any stage of the proceedings, either on its own motion or on the application of any of the parties, transfer any suit, appeal or other proceeding pending before it for trial or disposal to any court subordinate to it and competent to try or dispose of the same.
Withdrawal Power: Similarly, the High Court or the District Court may withdraw any suit, appeal or other proceeding pending in any court subordinate to it and transfer the same for trial or disposal to any court subordinate to it and competent to try or dispose of the same or may re-transfer the same to the court from which it was withdrawn. Alternatively, the High Court or the District Court may proceed to try or dispose of the same.

Circumstances Justifying Transfer or Withdrawal:

The courts typically exercise their power under Section 24 based on considerations of:

Expediency: To expedite the disposal of cases.
Justice: To ensure a fair trial and prevent injustice.
Convenience: To promote the convenience of the parties and witnesses.
Impartiality: To prevent bias or prejudice.

Important Considerations:

Competent Court: The transfer can only be made to a court that is competent to try or dispose of the suit or proceeding. This means the transferee court must have the necessary pecuniary and territorial jurisdiction.
Opportunity to be Heard: The parties must be given a reasonable opportunity to be heard before an order of transfer or withdrawal is made.
Exercise of Discretion: The power under Section 24 is discretionary, and the courts exercise it based on the facts and circumstances of each case.

Illustrative Example:

A suit is pending in a subordinate court where the presiding officer is related to one of the parties. The District Court, upon becoming aware of this, can, on its own motion, withdraw the suit from that court and transfer it to another competent court to ensure impartiality.

Section 25: Power of State Government to Invest Officers with Certain Powers

Section 25 empowers the State Government to invest certain officers with the powers of a District Court to transfer any case or class of cases specified in Section 24(1)(a) from one court to another, or to withdraw any case or class of cases from any court and transfer them to another court, subject to the conditions and limitations specified in the section. This provision is not commonly invoked, but it provides flexibility for the State Government to address specific situations.

Key Aspects of Section 25:

State Government Empowerment: The State Government is the authority to invest officers with the specified powers.
Powers of District Court: The officers are invested with powers equivalent to those of a District Court under Section 24(1)(a), which relates to the transfer of suits.
Limitations and Conditions: The exercise of powers by the officers is subject to any conditions and limitations prescribed by the State Government.
Notification Requirement: The State Government must issue a notification in the Official Gazette specifying the officers invested with the powers and the limitations and conditions attached to their exercise.

Significance:

Section 25 allows the State Government to delegate certain powers of transfer to administrative officers, potentially streamlining the process in specific situations or areas. However, due to the potential for misuse, the exercise of these powers is carefully regulated and subject to limitations.

Relevant Legal Principles and Case Laws

Several landmark judgments have clarified the principles governing the transfer of suits under Sections 22-25 of the CPC:

Kulwinder Kaur vs Kandi Friends Education Trust (2008) 3 SCC 659: This case emphasized that the convenience of the parties, particularly the weaker party, should be given paramount importance when considering a transfer application.
Maneka Sanjay Gandhi vs Rani Jethmalani (1979) 4 SCC 167: The Supreme Court highlighted that the credibility of the judicial process must be maintained, and transfer can be justified if there is a reasonable apprehension of bias or injustice.
Guda Vijayalakshmi vs Guda Ramachandra Reddy (2020) SCC Online SC 802: The Court reiterated that the power to transfer suits under Section 24 is discretionary and must be exercised judiciously, considering the facts and circumstances of each case.

Key Considerations from Case Laws:

Dominus Litis: While the plaintiff has the initial choice of forum, this is not absolute, and the court can order a transfer based on the convenience of the defendant and other factors.
Balance of Convenience: The court must weigh the convenience of all parties involved, not just the defendant.
Reasonable Apprehension of Bias: A transfer may be warranted if there is a reasonable apprehension that the trial court will not be able to conduct the proceedings impartially.
Speedy Disposal: Transfer can be ordered to ensure a more expeditious disposal of the suit.

Conclusion

Sections 22 to 25 of the CPC provide a comprehensive mechanism for the transfer of suits, particularly those that can be instituted in more than one court. These provisions aim to ensure fairness, convenience, and efficiency in the administration of justice. While Section 22 grants the defendant the right to apply for transfer based on the balance of convenience, Section 24 confers broader powers on the High Court and District Court to transfer or withdraw suits for various reasons, including expediency, justice, and impartiality. Section 25 empowers the State Government to invest certain officers with transfer powers, subject to limitations. The exercise of these powers is governed by well-established legal principles and subject to judicial scrutiny, ensuring that transfers are ordered only when justified by the facts and circumstances of each case, and with due regard to the rights of all parties involved. Understanding these provisions is crucial for legal professionals and litigants alike to navigate the complexities of civil litigation effectively.