1993 Supreme(SC) 876

SUPREME COURT OF INDIA
(BEFORE A.M. AHMADI, M. M. PUNCHHI AND N. VENKATACHALA. JJ.)
ALIGARH MUSLIM UNIVERSITY AND ANOTHER
Versus
VINAY ENGINEERING ENTERPRISES (P) LTD. AND ANOTHER.
Civil Appeal Nos. 5230-31 of 1993, decided on September 27, 1993.

The central legal point established in the judgment is the abuse of jurisdiction by the High Court of Calcutta and the requirement for the proceedings to be presented in the proper court where the cause of action arose.

Headnote:

Jurisdiction - High Court of Calcutta - Abuse of Jurisdiction

Fact of the Case:

The contracts in question were executed at Aligarh, the construction work was to be carried out at Aligarh, and the contracts provided that in the event of dispute the Aligarh Court alone will have jurisdiction. The arbitrator was from Aligarh and was to function there. The respondent, a Calcutta-based firm, moved the Calcutta High Court despite no part of the cause of action arising within the jurisdiction of that Court.

Finding of the Court:

The High Court of Calcutta exercised jurisdiction where it had none, leading to a case of abuse of jurisdiction. The appeals were allowed, the impugned orders of the High Court were set aside, and the proceedings initiated in the High Court of Calcutta were directed to be returned to the respondent for presentation in the proper court. The respondent was also directed to pay the hearing cost.

Issues: Abuse of jurisdiction by the High Court of Calcutta

Ratio Decidendi: The court found that the High Court of Calcutta had no jurisdiction in the case and that the respondent deliberately moved the Calcutta High Court despite no part of the cause of action arising within its jurisdiction.

Final Decision: The appeals were allowed, the impugned orders of the High Court were set aside, and the proceedings initiated in the High Court of Calcutta were directed to be returned to the respondent for presentation in the proper court. The respondent was also directed to pay the hearing cost.