Synopsis

The plaintiff (an ex‑employee) filed a suit for declaration and damages against HDFC Bank, challenging her termination. The appointment letter contained a clause conferring exclusive jurisdiction on courts in Mumbai. The bank filed an application under Order VII Rule 10 CPC for return of the plaint on the ground that the Nagpur court lacked territorial jurisdiction. That application was rejected, and the bank’s civil revision and review were also dismissed, all of which attained finality. Subsequently, the Supreme Court in Rakesh Kumar Verma v. HDFC Bank interpreted the same jurisdiction clause and held that only Mumbai courts have jurisdiction. The bank filed a fresh application under Order VII Rule 10 CPC seeking return of the plaint, relying on the new Supreme Court judgment. The trial court rejected the fresh application on the ground of res judicata. The High Court dismissed the civil revision, holding that: (i) the earlier decision on territorial jurisdiction, though erroneous, was binding between the parties; (ii) territorial jurisdiction is a procedural aspect, not an inherent lack of jurisdiction, and therefore does not fall within the exceptions to res judicata; (iii) the cause of action being the same, a subsequent change in law does not permit re‑agitation; and (iv) Explanation to Order XLVII Rule 1 CPC expressly bars review on the ground of a subsequent decision of a superior court in another case.

Court: High Court of Judicature at Bombay, Nagpur Bench
Coram: Rohit W. Joshi, J.
Date: April 6, 2026
Core Law: Civil Procedure Code, 1908 – Sections 11 (res judicata), 21 (objection to territorial jurisdiction), Order VII Rule 10 (return of plaint), Order XLVII Rule 1 (review); Jurisdiction – distinction between inherent lack of jurisdiction and procedural (territorial) jurisdiction.

2. Legal Framework

• Code of Civil Procedure, 1908: Section 11 (res judicata), Section 21 (objection to territorial jurisdiction), Order VII Rule 10 (return of plaint), Order XLVII Rule 1 and its Explanation (review – change in law not a ground for review).

• Principles of Jurisdiction: Distinction between inherent lack of jurisdiction (subject matter) – which renders a decree a nullity – and procedural lack of jurisdiction (territorial, pecuniary) – which is curable and does not nullify the decree.

• Relevant Precedents:
  Ittyavira Mathai v. Varkey Var

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