This question is based on Illustration (a) of Section 20 of Code of Civil Procedure, 1908. Section 20 deals with Other suits to be instituted where defendants reside or cause of action arises See Illustration (a) stated below:
Illustration (a) A is a tradesman in Calcutta, B carries on business in Delhi B, by his agent in Calcutta, buys goods of A and requests A to deliver them to the East Indian Railway Company A delivers the goods accordingly in Calcutta. A may sue B for the price of the goods either in Calcutta, where the cause of action has arisen, or in Delhi, where B carries on business.