Question:medium

Principle: Civil Suit can be filed where defendant resides or carries on business or where cause of action arises.
Facts: An agreement is signed and executed in New Delhi between A and B for supply of goods wherein B is to supply goods to be delivered at New Dehli to client of A. A carries on business at Haryana and B carries on Business in UP. Civil suit by 'B‘ for payment of consideration can be filed against 'A‘ at
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
  • Only at New Delhi, where cause of action arises
  • Only at Haryana where 'A‘ carries on business
  • Only at UP where 'B‘ carries on business
  • At Haryana or at New Delhi
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The Correct Option is D

Approach Solution - 1

Under the principle, the relevant places for filing suit are tied to the defendant, the defendant's residence or place of business, plus wherever the cause of action arose. The plaintiff's own location does not create a valid forum, so UP, where B carries on business, can be set aside immediately since B is the plaintiff here, not the defendant.

That leaves two real candidates. A, the defendant, carries on business in Haryana, which satisfies the business ground directly. The agreement was also signed and was to be performed, delivery included, in New Delhi, which makes New Delhi the place where the cause of action arose, satisfying the second ground.

Since the principle does not force a plaintiff to pick just one of several available grounds, both Haryana and New Delhi remain open to B, and any option that drops one of these two, or substitutes UP for either, does not match the rule as applied to these facts.

So the correct answer is At Haryana or at New Delhi.

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Approach Solution -2

Checking what would need to be different for each option to hold shows where three of the four choices fall short.

  1. Only at New Delhi, where cause of action arises: This would be correct only if A did not carry on business anywhere else that counted, but A does carry on business in Haryana, so a second valid ground is being left out.
  2. Only at Haryana where 'A' carries on business: This would be correct only if the cause of action had not arisen in New Delhi, but the agreement was executed and delivery was to occur there, so this option leaves out a ground that plainly exists.
  3. Only at UP where 'B' carries on business: This would need the principle to recognise the plaintiff's place of business as a ground, but the rule ties the forum to the defendant, A, not to B, so this option depends on a ground the principle simply does not offer here.
  4. At Haryana or at New Delhi: No change is needed, both of A's qualifying connections, business in Haryana and the cause of action in New Delhi, already exist exactly as the facts describe.

With two grounds already present and pointing to two cities, and UP never qualifying in the first place, the option naming both live grounds together is the one that matches.

Therefore, the correct answer is At Haryana or at New Delhi.

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