Question:

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

The correct option is (D):At Haryana or at New Delhi.
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Approach Solution -2

The principle allows a civil suit to be filed where the defendant resides, where the defendant carries on business, or where the cause of action arises. The agreement was signed and executed in New Delhi, and delivery of goods was to be made in New Delhi, so the cause of action arose there. A carries on business in Haryana and is the defendant in this suit brought by B.

  1. Only at New Delhi, where cause of action arises: This is one valid ground, since the agreement and delivery point to New Delhi, but limiting the suit to only this place wrongly shuts out the other ground the principle also allows.
  2. Only at Haryana where 'A' carries on business: This is also one valid ground, since A the defendant carries on business in Haryana, but restricting the suit to only Haryana wrongly excludes New Delhi where the cause of action arose.
  3. Only at UP where 'B' carries on business: The principle looks at the defendant's residence or business, or the cause of action, not the plaintiff's place of business. B carrying on business in UP is not one of the grounds the principle recognises for where suit can be filed against A.
  4. At Haryana or at New Delhi: Both qualifying grounds are present here, A's place of business in Haryana and the place where the cause of action arose in New Delhi, so B can choose either one to sue A.

Since the defendant's place of business and the place of the cause of action point to two different cities, and the principle allows suit at either, B is not confined to just one option.

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

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Approach Solution -3

Two grounds decide this question, A the defendant carries on business in Haryana, and the agreement together with the intended delivery point ties the cause of action to New Delhi. B's own location in UP is not a ground at all, since the principle looks at the defendant, not the plaintiff. Testing each option against these two live grounds settles the matter.

  1. Only at New Delhi, where cause of action arises: This captures one live ground but drops the other, Haryana, where A carries on business, so it understates what is actually available to B.
  2. Only at Haryana where 'A' carries on business: This captures the other live ground alone and drops New Delhi, the same one-sided problem in the opposite direction.
  3. Only at UP where 'B' carries on business: UP is not a live ground at all under this principle, since the rule is about the defendant's location, not the plaintiff's, so this option rests on a location the principle does not recognise here.
  4. At Haryana or at New Delhi: This is the only option that reflects both live grounds together, matching the full set of places the principle actually opens up on these facts.

Since two grounds exist and point to two different cities, while UP never qualifies as a ground at all, the option covering both live grounds is the one that fits.

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

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