Jurisdiction of the Court in Lawsuits Related to the Company's Branch with an Emphasis on Judicial Practice

Document Type : Research Article

Author

Department of Civil Law, Faculty of Law, University of Qom, Qom, Iran

Abstract

Under the second part of Article 23 of the Code of Civil Procedure, lawsuits arising from a company’s branch must be brought before the court of that branch. However, the scope of this rule is ambiguous: it is unclear whether it governs only contractual claims linked to the branch, non‑contractual claims, or both categories. A further question is whether the provision excludes the jurisdiction of the court where the contract was formed or the court designated for its performance. The placement of this clause within Article 23, along with its reference to “obligations” and “transactions,” indicates that it primarily addresses contractual disputes connected to the branch and that the word “should” may imply exclusive jurisdiction. Nevertheless, the textual and contextual features of the provision support a facilitative, supplementary function rather than a restrictive one. Accordingly, interpreting it as excluding other competent courts is neither reasonable nor supported by sufficient legal grounds.

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References

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Private Law
Volume 22, Issue 2
Autumn & Winter
October 2025
Pages 167-177

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