Question:medium

Principle: Civil Suit can be filed where defendant resides or carries on business or where cause of action arises.
Facts: 'A‘ carries on business in Gurgaon, 'B‘ carries on Business in Mumbai. 'B‘ through his agent in Gurgaon purchases goods in Gurgaon and takes delivery through agent in Gurgaon. Where Civil Suit for payment of price can be filed by 'A‘?
This question consists of legal principle(s) (hereinafter referred to as ‘principle‘) and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. Principles have to be applied to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. In other words, in answering the following questions, you must not rely on any principle except the principles that are given herein below for every question. Further you must not assume any facts other than those stated in the question. The objective of this section is to test your ability in legal aptitude, study of law, research aptitude and problem solving ability even if the ’most reasonable conclusion‘ arrived at may be absurd or unacceptable for any other reason.

Updated On: Jul 15, 2026
  • Gurgaon only where cause of action arises
  • At Mumbai where B carries on Business
  • At either of the places i.e. Mumbai or Gurgaon
  • Anywhere in India
Show Solution

The Correct Option is C

Approach Solution - 1

The principle sets out three separate doors into a civil suit, the defendant's residence, the defendant's place of business, or the place where the cause of action arose, and a plaintiff only needs one of them open to file there. The job here is to see how many of those doors are actually open on these facts.

B, the defendant, carries on business in Mumbai, so that door is open. Separately, B's agent bought the goods and took delivery of them in Gurgaon, and that transaction is what generated A's claim for payment, so the cause of action arose in Gurgaon too, opening a second door.

With two independent grounds satisfied in two different cities, restricting the suit to only one of them, or throwing it open to the whole country, both miss the mark. The principle's own structure, any one of several qualifying places, is what makes Mumbai and Gurgaon both valid options together.

So the correct answer is At either of the places i.e. Mumbai or Gurgaon.

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Approach Solution -2

Asking what would need to change for each option to be correct exposes the gap in three of the four choices.

  1. Gurgaon only where cause of action arises: This would be correct only if B did not carry on business anywhere else that counted, but B does carry on business in Mumbai, so an extra ground exists that this option leaves out.
  2. At Mumbai where B carries on Business: This would be correct only if the cause of action had not arisen in Gurgaon, but the purchase and delivery through B's agent did happen there, so this option similarly ignores a ground that is actually present.
  3. At either of the places i.e. Mumbai or Gurgaon: No fact needs to change, both grounds, B's place of business and the place where the cause of action arose, are already present in the facts exactly as given.
  4. Anywhere in India: This would only be correct if the principle granted suit at any location whatsoever, but it names specific qualifying grounds, so treating it as unlimited requires rewriting the rule itself.

Since both qualifying grounds already exist without needing any change to the facts, and only one option reflects both together, that option is the one that fits.

Therefore, the correct answer is At either of the places i.e. Mumbai or Gurgaon.

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