Jawwad S. Khawaja, J.--Leave to appeal was granted in this case vide order dated 29.7.2009. The case before us is straightforward. It arises from an application under Order 7 Rule 11 CPC., This application was filed by the appellant, namely M/s. Sezai Turkes Feyzi Akkaya Construction Company (STFA), on the ground that the Courts in Kanbul had jurisdiction or in the alternate the Courts in Karachi would have jurisdiction and not the Civil. Courts at Islamabad. In support of this plea, the appellant STFA had referred to the provisions of Section 20 CPC as interpreted by this Court in the case titled M.A. Chowghury vs. Mitsui 0.S.K Lines Ltd. & 3 others (PLD 1970 SC 373).
Explanation No, 2 is specific to corporate entities such as STFA. It stipulates that a corporate entity "shall be deemed to carry on business at its sole or principal office in Pakistan or in respect of any cause of action arising at any place where it has also a subordinate office, at such place" This explanation has been examined extensively in the case of Mitsui (supra).
2. In the facts of the present case, it is clear that the contract entered into between the two Turkish Companies was to be performed in Karachi. As such, the cause of action vests jurisdiction in the Courts at Karachi in line with the ratio of the afore-cited case. Faced with the above situation, learned counsel/AOR for the respondent Company stated that there was another Company, namely Hakas Pvt. Ltd., which had its place of business in Islamabad. This, however, may not be relevant because M/s. Ekon Yapi Onarim had filed suit against M/s. Sezai Turkes Feyzi Akkaya Construction Company (appellant herein) and Port Qasim Authority and Hakas Company Ltd.
(Respondent 2-3 herein). We have been informed that M/s. Hakas Pvt. Ltd., though having its office in Islamabad, has been proceeded against ex-parte in the trial Court and also chose not to appear in the High Court.
3. In view of the foregoing discussion and following the ratio in the case of Mitsui (supra), we are clear that in this case the Courts at Islamabad had not been vested with jurisdiction and it was the Courts at Karachi where the suit ought to have been filed. In view of the foregoing discussion, this appeal is allowed and the order of the trial Court dated 24.4.2007 and the High Court dated 9.5.2008 are set aside. The plaint, on application of the respondent-plaintiff, shall be returned and the plaintiff, may if so advised, file it before the competent Court at Karachi.