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2004(3) Supreme 757
SUPREME COURT OF INDIA
(From Delhi High Court)
V.N. Khare, CJI., S.B. Sinha and S.H. Kapadia, JJ.
M/s. Kusum Ingots & Alloys Ltd. -Appellant
versus
Union of India and Anr. -Respondents
Civil Appeal No. 9159 of 2003
Decided on 28-4-2004
Counsel for the Parties :
For the Appellants : S. Borthakur and Sunil Kumar Jain, Advocates.
For the Respondents : Rajiv Shakdhar, Ms. V. Mohana, Ms. Sushma Suri, Sanjay Kapur, Sanjeev Kumar and Rajiv Kapur, Advocates.
Held : Cause of action implies a right to sue. The material facts which are imperative for the suitor to allege and prove constitutes the cause of action. Cause of action is not defined in any statute. It has, however, been judicially interpreted inter alia to mean that every fact which would be necessary for the plaintiff to prove, if traversed, in order to support his right to the judgment of the Court. Negatively put, it would mean that everything which, if not proved, gives the defendant an immediate right to judgment, would be part of cause of action. Its importance is beyond any doubt. For every action, there has to be a cause of action, if not, the plaint or the writ petition, as the case may be, shall be rejected summarily. (Para 6)
Although in view of Section 141 of the Code of Civil Procedure the provisions thereof would not apply to a writ proceedings, the phraseology used in Section 20(c) of the Code of Civil Procedure and Clause (2) of Article 226, being in pari materia, the decisions of this Court rendered on interpretation of Section 20(c) of CPC shall apply to the writ proceedings also. Before proceeding to discuss the matter further it may be pointed out that the entire bundle of facts pleaded need not constitute a cause of action as what is necessary to be proved before the petitioner can obtain a decree is the material facts. The expression material facts is also known as integral facts. Keeping in view the expressions used is Clause (2) of Article 226 of the Constitution of India, indisputably even if a small fraction of cause of action accrues within the jurisdiction of the Court, the Court will have jurisdiction in the matter. (Paras 9 and 10)
The facts pleaded in the writ petition must have a nexus on the basis whereof a prayer can be granted. Those facts which have nothing to do with the prayer made therein cannot be said to give rise to a cause of action which would confer jurisdiction on the court. (Para 18)
(ii) Constitution of India-Article 226(2)-Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002-Constitutional validity of the Act-Writ petition filed before Delhi High Court-Dismissal on ground of lack of territorial jurisdiction-Appellant company obtained a loan from Bhopal Branch of State Bank of India-Respondent 2 issued a notice for repayment of said loan from Bhopal in terms of provisions of the Act-Constitutionality of Parliamentary Act questioned-Whether dismissal of writ petition on ground of lack of jurisdiction was proper-(Yes).
Held : A parliamentary legislation when receives the assent of the President of India and published in an Official Gazette, unless specifically excluded, will apply to the entire territory of India. If passing of a legislation gives rise to a cause of action, a writ petition questioning the constitutionality thereof can be filed in any High Court of the country. It is not so done because a cause of action will arise only when the provisions of the Act or some of them which were implemented shall give rise to civil or evil consequences to the petitioner. A writ court, it is well settled would not determine a constitutional question in vacuum. The court must have the requisite territorial jurisdiction. An order passed on writ petition questioning the constitutionality of a Parliamentary Act whether interim or final keeping in view the provisions contained in Clause (2) of Article 226 of the Constitution of India, will have effect throughout the territory of India subject of course to the applicability of the Act. (Paras 21 & 22)
A writ petition, however, questioning the constitutionality of a Parliamentary Act shall not be maintainable in the High Court of Delhi only because the seat of the Union of India is in Delhi. (Para 23)
In view of clause 2 of Article 226 of the Constitution of India now if a part of cause of action arises outside the jurisdiction of the High Court, it would have jurisdiction to issue a writ. The decision in Khajoor Singh (supra) has, thus, no application. We must, however, remind ourselves that even if a small part of cause of action arises within the territorial jurisdiction of the High Court, the same by itself may not be considered to be a determinative factor compelling the High Court to decide the matter on merit. In appropriate cases, the Court may refuse to exercise its discretionary jurisdiction by invoking the doctrine of forum conveniens. (Paras 29 and 30)
JUDGMENT
S.B. Sinha, J.-
Introduction :
Whether the seat of the Parliament or the Legislature of a State would be a relevant factor for determining the territorial jurisdiction of a High Court to entertain a writ petition under Article 226 of the Constitution of India is the question involved in this appeal which arises out of a judgment and order dated 25.7.2003 passed by the High Court of Delhi in C.W.P. No. 4609 of 2003 holding that the said Court has no jurisdiction.
Background Facts
2. The appellant is a company registered under the Indian Companies Act. Its registered office is at Mumbai. It obtained a loan from the Bhopal Branch of State Bank of India. The respondent No.2 issued a notice for repayment of the said loan from Bhopal purported to be in terms of the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
3. Questioning the vires of the said Act, the said writ petition was filed before Delhi High Court by the appellant herein which was dismissed on the ground of lack of territorial jurisdiction.
Submissions
4. The only submission made on behalf of the appellant before the High Court as also before us is that as the constitutionality of a parliamentary act was in question, the High Court of Delhi had the requisite jurisdiction to entertain the writ petition.
5. On the other hand, the contention of the learned counsel appearing on behalf of the respondent is that as no cause of action arose within the territorial jurisdiction of the High Court of Delhi, the writ petition has rightly not been entertained.
Cause of Action :
6. Cause of action implies a right to sue. The material facts which are imperative for the suitor to allege and prove constitutes the cause of action. Cause of action is not defined in any statute. It has, however, been judicially interpreted inter alia to mean that every fact which would be necessary for the plaintiff to prove, if traversed, in order to support his right to the judgment of the Court. Negatively put, it would mean that everything which, if not proved, gives the defendant an immediate right to judgment, would be part of cause of action. Its importance is beyond any doubt. For every action, there has to be a cause of action, if not, the plaint or the writ petition, as the case may be, shall be rejected summarily.
7. Clause (2) of Article 226 of the Constitution of India reads thus:
"(2) The power conferred by clause (1) to issue directions, orders or writs to any Government, authority or person may also be exercised by any High Court exercising jurisdiction in relation to the territories within which the cause of action, wholly or in part, arises for the exercise of such power, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories."
8. Section 20(c) of the Code of Civil Procedure reads as under:
"20 OTHER SUITS TO BE INSTITUTED WHERE DEFENDANT RESIDE OR CAUSE OF ACTION ARISES.
Subject to the limitation aforesaid, every suit shall be instituted in a court within the local limits of whose jurisdiction-
(c) the cause of action, wholly or in part, arises."
9. Although in view of Section 141 of the Code of Civil Procedure the provisions thereof would not apply to a writ proceedings, the phraseology used in Section 20(c) of the Code of Civil Procedure and Clause (2) of Article 226, being in pari materia, the decisions of this Court rendered on interpretation of Section 20(c) of CPC shall apply to the writ proceedings also. Before proceeding to discuss the matter further it may be pointed out that the entire bundle of facts pleaded need not constitute a cause of action as what is necessary to be proved before the petitioner can obtain a decree is the material facts. The expression material facts is also known as integral facts.
10. Keeping in view the expressions used is Clause (2) of Article 226 of the Constitution of India, indisputably even if a small fraction of cause of
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