2004 Supreme(Bom) 332
IN THE HIGH COURT OF BOMBAY
Khanwilkar A.M., J.
Air India Limited.... Plaintiff.
Versus
Caribjet Inc..... Defendant.
Chamber Summons No. 390 of 2003 in Suit No. 3228 of 2001, decided on 5-3-2004.
Advocates appeared :
Virag Tulzapurkar with S.V. Doijode with P. Kabadi i/b. Doijode Phatarphekar Associates, for defendant.
Zubin Behramkamdin i/b. Mulla Mulla Craigie Blunt Caroe, for plaintiff.
Headnote:Civil Procedure Code, 1908 - Section 20(c) - Grant of leave to sue. - In absence of any specific details about hardship forced by defendants, mere balance of convenience would not be enough for revocation of leave to sue granted.
Land Acquisition Act, 1894- Clause 12 - Grant of leave to sue. - Mere balance of convenience would not be sufficient, it has to be such that it is overwhelming in favour of suit being heard by a Court other than the Court granting leave, and the same is missing here in this case. Application is accordingly rejected.
Land Acquisition Act, 1894- Clause 12 - Cause of action when assessing is in more than one State. - When leave under clause 12 has been granted only on 8.9.2001 and suit came up to be numbered thereafter on 13.9.2001, it is resultant to numbering the suit, and can be said to have been accepted and received by the Court.
Income Tax Act, 1961- Section 226(3) - Reimburse- ment of money. - The application for leave clearly sets out relevant facts and asserts payment of tax authorities, the Court is empowered to grant leave to institute suit under clause 12 of Letters Patent.
"(a) that the defendant be ordered and decreed to pay to the plaintiff the sum of Rs. 5,00,00,000/- (Rupees five crores only) which has been paid by the plaintiff on the Demand dated 19th February, 2001 to the Income Tax Authorities on account of the tax liabilities of the defendant, together with interest thereon at the rate of 12% p.a. from the date hereof till payment and/or realisation as per particulars of claim Exhibit W hereto.
(b) that the defendant be ordered and decreed to pay to the plaintiff the sum of Rs. 96,16,74,416/- (Rupees ninety six crores sixteen lacs seventy four thousand four hundred and sixteen only) being the balance amount which has been demanded from the plaintiff by the demand dated 19th February, 2001 or such other amount as the plaintiff is required to pay to the Income Tax Authorities on account of the tax liabilities of the defendant, together with interest thereon at the rate of 21% p.a. from the date hereof till payment and/or realisation as per particulars of claim Exhibit W-1 hereto.
(c) that the defendant be ordered and decreed to pay to the plaintiff the sum of Rs. 132,65,21,397/- (Rupees one hundred and thirty two crores sixty five lacs twenty one thousand three hundred and ninety seven only) which has been demanded from the plaintiff by the demand dated 27th March, 2000 or such other amount as the plaintiff is required to pay to the Income tax Authorities on account of the defendant, together with interest thereon at the rate of 21% p.a. from the date hereof till payment and/or realisation as per particulars of claim Exhibit X hereto.
(d) for costs;
(e) for such further and other reliefs as the nature and circumstances of the case may require."
2.A formal application for leave under Clause 12 was moved, which was granted on 8th September, 2001. Thereafter, the suit came to be numbered on 13th September, 2001 and, the plaint was served on the defendant on 1st October, 2001. Upon service, the defendant entered appearance through Advocate by filing Vakalatnama of the Advocate, on 9th October, 2001. Along with the plaint, the plaintiff had also moved for interim relief as prayed in the notice of motion. However, the first notice of motion came to be withdrawn in January 2003 with liberty to file fresh application. Pursuant to the liberty, another notice of motion was filed in February, 2003, which is stated to be pending for hearing. In the meantime, on 17th March, 2003, the present Chamber Summons has been filed for the relief as mentioned earlier.
3.Mainly three contentions have been raised in support of the relief prayed in the Chamber Summons. Firstly, it is argued that no part of cause of action has arisen in Mumbai. If it is so, this Court has no jurisdiction and no leave under Clause 12 could have been granted. It is next contended that the leave as granted by this Court ought to be revoked on the doctrine of "Forum Convenience" of the defendant. It is lastly contended that the plaintiff has first lodged the Suit on 20th July, 2001 without obtaining prior leave under Clause 12 of the Letters Patent; whereas, leave has been granted subsequently on 8th September, 2001, which was impermissible. It is contended that leave under Clause 12 has been granted essentially on the facts stated in Para 30 of the plaint, which reads thus:
"30. The defendant had an office in Bombay till September 1996 but now no longer carries on business in Mumbai. The Wet Lease Agreement dated 22-10-95 was executed in Mumbai.