Question:

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
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The Correct Option is C

Approach Solution - 1

The correct option is (C):At either of the places i.e. Mumbai or Gurgaon .
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Approach Solution -2

The principle allows a civil suit to be filed at the place where the defendant resides, where the defendant carries on business, or where the cause of action arises. A carries on business in Gurgaon and B carries on business in Mumbai, but B's agent purchased the goods and took delivery in Gurgaon, which is where the cause of action arose. A wants to sue B for payment.

  1. Gurgaon only where cause of action arises: This is correct as far as it goes, since the purchase and delivery through the agent did happen in Gurgaon, but it wrongly excludes the other place the principle also permits.
  2. At Mumbai where B carries on Business: This too is correct as far as it goes, since B does carry on business in Mumbai, but it wrongly excludes Gurgaon where the cause of action arose.
  3. At either of the places i.e. Mumbai or Gurgaon: The principle gives A more than one qualifying ground, the defendant's place of business and the place where the cause of action arose, and both grounds are satisfied here, one by Mumbai and one by Gurgaon. So the suit can be filed at either place.
  4. Anywhere in India: The principle names specific qualifying places, it is not a blanket permission to sue anywhere. Extending it to any location in India goes well beyond what the rule actually grants.

Because both the defendant's business location and the place where the cause of action arose are available grounds under the principle, and each points to a different city, A has a choice between Mumbai and Gurgaon.

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

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Approach Solution -3

The decisive fact set here is that two separate grounds under the principle are both satisfied at once, B carries on business in Mumbai, and the cause of action, the purchase and delivery through B's agent, arose in Gurgaon. Each option can be tested simply by counting how many of those two grounds it accounts for.

  1. Gurgaon only where cause of action arises: This accounts for only one of the two available grounds and drops the business-location ground in Mumbai, so it undercounts what the principle actually permits.
  2. At Mumbai where B carries on Business: This also accounts for only one ground and drops the cause of action ground in Gurgaon, the same undercounting problem from the other direction.
  3. At either of the places i.e. Mumbai or Gurgaon: This is the only option that accounts for both grounds together, matching the full set of places the principle opens up on these facts.
  4. Anywhere in India: This overshoots by treating the principle as unlimited, when in fact it names only specific qualifying places, not every location in the country.

Counting the valid grounds and matching them against each option leaves only the one that captures both Mumbai and Gurgaon together.

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

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