Objection to territorial jurisdiction is deemed waived if not raised at or before the settlement of issues.

The appellant filed a civil suit for the recovery of Rs. 10 lakhs, alleging he provided a friendly loan to the respondent via a bank transfer from his account in Delhi

The respondent issued a repayment cheque which was presented and dishonored in Delhi

The respondent filed a written statement on 02.05.2019 without objecting to the territorial jurisdiction of the Delhi courts; in fact, the respondent stated the jurisdiction paragraph was a "matter of record"

Issues were subsequently settled on 18.02.2021

Thereafter, the respondent filed an application under Order VII Rule 10 of the CPC for return of the plaint, arguing that because the respondent resided in Karnataka and documents were executed there, Delhi lacked jurisdiction

The Trial Court allowed the application via the impugned order dated 23.07.2022

Whether a defendant is precluded from raising an objection to territorial jurisdiction via an application under Order VII Rule 10 CPC if such an objection was not raised in the written statement or before the settlement of issues

Section 21 of the Code of Civil Procedure (CPC), which mandates that objections to territorial jurisdiction must be taken at the earliest possible opportunity, specifically at or before the settlement of issues

Harshad Chiman Lal Modi v. DLF Universal Ltd., which distinguishes between subject matter jurisdiction (which cannot be waived) and territorial or pecuniary jurisdiction (which is waived if not timely challenged)

principle from Bahrein Petroleum Company Ltd. v. Pappu, establishing that territorial jurisdiction is a statutory defect that can be waived by the parties, unlike inherent lack of jurisdiction

the Court observed that for the purposes of Order VII Rule 10 CPC, while a court can return a plaint at "any stage," this power is subject to the principles of waiver and acquiescence

The Court noted that the respondent failed to raise any jurisdictional objection in his written statement and conceded that the appellant's jurisdictional claims were a "matter of record"

Under Section 21 CPC, territorial jurisdiction does not go to the root of the court's inherent power; therefore, if a party fails to object before the settlement of issues, they are deemed to have waived such an objection

The Court highlighted that since the issues had already been framed on 18.02.2021 without any issue being struck regarding jurisdiction, the respondent was precluded from subsequently challenging it

The Court held that the respondent’s failure to object to territorial jurisdiction at the first instance or at the stage of framing issues constituted a waiver of that objection

The suit was restored to its original number, and the parties were directed to appear before the Trial Court on 30.03.2026