Harshad Chiman Lal Modi Vs DLF Universal Limited

**Suitable Titles for the Article:**  

1. Supreme Court Rules Property Location Alone Decides Jurisdiction in Specific Performance Suits  

2. Landmark Ruling: Agreement Cannot Override Statutory Forum for Immovable Property Disputes  

3. Delhi Court Has No Say in Gurgaon Plot Suit – Supreme Court Settles Jurisdiction Debate  

**Suitable Tags:**  

#SupremeCourt #CPCSection16 #TerritorialJurisdiction #SpecificPerformance #ImmovableProperty #ContractClause #JurisdictionAgreement #IndianCivilProcedure #PropertyLaw #HarshadModiCase  

### Introduction  

In a clear and authoritative pronouncement, the Supreme Court of India settled a vital question of civil procedure that affects countless property disputes across the country. The Court explained when and how a suit seeking specific performance of an agreement to sell immovable property, along with delivery of possession, must be filed. It firmly held that the location of the property is the decisive factor for deciding which court has jurisdiction, and no private agreement between the parties can change this statutory rule. This judgment continues to guide lawyers and courts on the limits of party autonomy in choosing a forum for property-related suits.  

### Factual Background  

A buyer entered into a standard plot-buyer agreement with a real estate company for purchase of a residential plot located in Gurgaon, Haryana. The agreement was signed in Delhi, payments were made in Delhi, and the company’s head office was also in Delhi. The agreement contained a clause stating that only Delhi courts would have jurisdiction over any dispute arising from the transaction. Later, the company cancelled the agreement citing non-payment of certain dues. The buyer, feeling aggrieved, filed a civil suit in the Delhi High Court seeking declaration that the agreement was valid, specific performance directing the company to execute the sale deed, delivery of possession of the plot, and permanent injunction against any third-party sale.  

### Procedural Background  

The defendants initially filed a written statement in which they expressly admitted that the Delhi court had jurisdiction. The suit proceeded for several years, issues were framed, and evidence was being recorded. More than eight years after filing the written statement, the defendants suddenly moved an application to amend their pleading and raise an objection that the Delhi court had no jurisdiction because the plot was situated in Gurgaon. The trial court allowed the amendment, heard the parties on the jurisdiction issue, and held that the suit fell under Section 16 of the Code of Civil Procedure and could only be filed where the property is located. Accordingly, the plaint was ordered to be returned for presentation to the proper court. The buyer challenged this order in revision before the Delhi High Court, which upheld the trial court’s decision. Aggrieved, the buyer approached the Supreme Court by way of special leave petition.  

### Reasoning and Decision of Court  

The Supreme Court examined the scheme of Sections 15 to 20 of the Code of Civil Procedure in detail. It observed that suits involving rights or interests in immovable property must be filed in the court within whose territorial limits the property is situated. The Court clarified that the proviso to Section 16, which allows a suit to be filed where the defendant resides if the relief can be obtained through personal obedience, does not apply to cases where the plaintiff also seeks actual delivery of possession of the property. In such matters, the relief is not purely personal but directly concerns the immovable property itself.  

The Court further held that Section 20, the residuary provision for suits based on residence or cause of action, cannot override the specific mandate of Section 16. Even though the agreement conferred exclusive jurisdiction on Delhi courts, such a clause is valid only when two or more courts otherwise have jurisdiction under the Code and the parties agree to restrict the forum to one of them. Where a court has no jurisdiction at all under the statute, no agreement can confer or create jurisdiction. The Court also ruled that objection to jurisdiction over the subject-matter of the suit (as opposed to territorial or pecuniary jurisdiction) can be raised at any stage, even belatedly, because it goes to the root of the court’s authority. Neither consent, waiver, nor long delay can validate proceedings before a court that lacks statutory jurisdiction.  

Applying these principles, the Supreme Court held that the Delhi court had no jurisdiction to entertain the suit. It accordingly dismissed the appeal and upheld the order returning the plaint for presentation to the court at Gurgaon.  

### Point of Law Settled in the Case  

This judgment firmly establishes that in suits for specific performance of an agreement relating to immovable property coupled with a prayer for possession, the court where the property is situated alone has jurisdiction under Section 16(d) of the Code of Civil Procedure. A private agreement between the parties purporting to confer jurisdiction on another court is of no avail and is void to that extent. The proviso to Section 16 has no application when the relief sought includes delivery of possession. Objection to lack of subject-matter jurisdiction can be raised at any time and is not waived by delay, consent, or admission in the written statement. Section 20 of the Code cannot be invoked to bypass the specific provisions of Section 16.  

**Case Detail**  

**Title:** Harshad Chiman Lal Modi Vs DLF Universal Limited    

**Date of Order:** 26 September 2005  

**Case Number:** Civil Appeal No. 2726 of 2000  

**Neutral Citation:** (2005) 7 Supreme Court Cases 791  

**Name of Court:** Supreme Court of India  

**Name of Hon'ble Judges:** Hon’ble Mr. Justice Arijit Pasayat and Hon’ble Mr. Justice C.K. Thakker (Judgment delivered by Hon’ble Mr. Justice C.K. Thakker)  

**Disclaimer:** Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation]  

**Written By:** Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi  

**Headnote of Article:**  

Supreme Court holds that suits seeking specific performance of agreement for sale of immovable property together with delivery of possession must be instituted only in the court within whose territorial jurisdiction the property is situate; any clause in the agreement conferring jurisdiction on another court is void and cannot override the statutory mandate of Section 16 CPC.

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**Summary**  

A buyer filed a suit in the Delhi court seeking specific performance of an agreement to purchase a residential plot situated in Gurgaon, Haryana, along with delivery of possession and injunction. The agreement was signed in Delhi, payments were made in Delhi, and it contained a clause giving exclusive jurisdiction to Delhi courts. The seller initially admitted Delhi court’s jurisdiction in its written statement. After more than eight years, the seller challenged the jurisdiction. The trial court allowed the objection, held that the suit related to immovable property and could only be filed where the property was located, and ordered return of the plaint. The Delhi High Court upheld the order. The Supreme Court dismissed the buyer’s appeal.

**Points of Law Settled**  

• A suit for specific performance of an agreement relating to immovable property with prayer for possession is governed by Section 16(d) CPC and can be instituted only in the court within whose territorial jurisdiction the property is situate. [(2005) 7 SCC 791, Para 19]  

• The proviso to Section 16 CPC has no application when the relief includes delivery of possession of immovable property. [(2005) 7 SCC 791, Para 19]  

• A clause in an agreement conferring jurisdiction on a court which otherwise has no territorial jurisdiction over the immovable property is void and of no effect. [(2005) 7 SCC 791, Para 27]  

• Objection to lack of subject-matter jurisdiction can be raised at any stage and is not waived by consent, admission in written statement or delay. [(2005) 7 SCC 791, Para 32]  

• A court without jurisdiction cannot entertain the suit and any order passed by it is a nullity. [(2005) 7 SCC 791, Para 32]

**Case Title:** Harshad Chiman Lal Modi Vs DLF Universal Limited   

**Order Date:** 26 September 2005  

**Case Number:** Civil Appeal No. 2726 of 2000  

**Neutral Citation:** (2005) 7 Supreme Court Cases 791  

**Name of Court:** Supreme Court of India  

**Name of Judge:** Hon’ble Mr. Justice C.K. Thakker (for the Bench comprising Hon’ble Mr. Justice Arijit Pasayat and Hon’ble Mr. Justice C.K. Thakker)

**Disclaimer:** Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation]

**Written By:** Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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