NEW MOGA TRANSPORT COMPANY vs UNITED INDIA INSURANCE COMPANY LTD.

The Supreme Court upheld the High Court's ruling that the Civil Court at Barnala had jurisdiction to hear the suit filed by United India Insurance Co. Ltd. and Malwa Cotton Spinning Mills Ltd., despite the appellant's claim that jurisdiction was limited to the Udaipur Court as per the consignment note. The Court clarified that the jurisdictional clause in the consignment note does not preclude the local court from exercising jurisdiction where the cause of action arose. The appeal was dismissed, affirming the High Court's decision to restore the trial Court's judgment.