Law: Code Of Civil Procedure, 1908.

Section: 10, 16(d), 16

Law: Easements Act, 1882

Section: 52, 62(g)

Case Summary

Shell Pakistan and the Retailer entered into a franchise agreement under which the Retailer operated a petrol station built on land leased by Shell from CDA. After Shell terminated the franchise agreement, the Retailer filed a suit in Islamabad seeking declaration of his continued right to operate and remain in possession of the petrol station. Shell sought return of the plaint under Order VII Rule 10 CPC, relying on the exclusive jurisdiction clause in the franchise agreement conferring jurisdiction on the courts at Karachi.

The trial court returned the plaint to be presented before the Karachi court. However, the appellate court reversed the order, holding that the suit involved a right or interest in immovable property under Section 16(d) CPC, and therefore only the Islamabad court had jurisdiction.

The High Court set aside the appellate court's order and restored the trial court's decision. It held that the Retailer was merely a contractual licensee under the franchise agreement and had no independent right, title, or interest in the leased land or petrol station. His right to occupy the premises existed only so long as the franchise agreement remained in force. Since both Karachi and Islamabad courts otherwise had jurisdiction under the proviso to Section 16 CPC, the parties were legally entitled to choose Karachi as the exclusive forum through their agreement. Accordingly, the plaint was rightly returned for presentation before the competent court at Karachi.