HIGH COURT OF CALCUTTA
Umesh Chandra Banerjee & Bijitendra Mohan Mitra, JJ.
Modern Malleable Casting Works Ltd.
vs.
M/s. Star Iron Works Ltd. & Ors.
WRIT APPEAL (Original Side) Matter No. 3497 of 1993
Decided On : September 19, 1994.
ARTICLE 226 - WRIT JURISDICTION - SITIUS THEORY - CAUSE OF ACTION - JURISDICTION OF HIGH COURT - FACTUAL MATRIX - WRIT PETITION DISMISSED FOR LACK OF JURISDICTION - JURISDICTIONAL ISSUE CAN BE RAISED AT ANY STAGE - CONSCIOUS APPLICATION OF MIND BY TRIAL JUDGE DOES NOT PRECLUDE APPELLATE COURT FROM INTERVENING AT EARLIEST STAGE.
Fact of the Case:
The appellant, a company, challenged the order of the Calcutta High Court, which had directed the Delhi Electricity Supply Undertaking (DESU) to execute a formal contract with the respondent, a company, for the procurement of spacer and spacer dampers for a 400 KY Double Circuit Line project in Delhi. The appellant contended that the High Court lacked jurisdiction to entertain the writ petition filed by the respondent since neither the cause of action arose within the jurisdiction of the High Court nor the appellant was located within the territorial limits of the High Court.
Finding of the Court:
The High Court held that it lacked jurisdiction to entertain the writ petition filed by the respondent. The court observed that the cause of action arose in Delhi, where the tender notice was published, the bids were submitted, and the decision to award the contract was made. The court further held that the mere receipt of a letter in Calcutta informing the respondent about the rejection of its bid did not confer jurisdiction on the High Court.
Issues: 1. Whether the High Court had jurisdiction to entertain the writ petition filed by the respondent? 2. Whether the Situs Theory was applicable in the facts of the case?
Ratio Decidendi: 1. The High Court held that it lacked jurisdiction to entertain the writ petition filed by the respondent. The court observed that the cause of action arose in Delhi, where the tender notice was published, the bids were submitted, and the decision to award the contract was made. The court further held that the mere receipt of a letter in Calcutta informing the respondent about the rejection of its bid did not confer jurisdiction on the High Court. 2. The High Court held that the Situs Theory was not applicable in the facts of the case. The court observed that the Situs Theory applies when the cause of action arises wholly or in part within the territorial jurisdiction of the High Court. In the present case, the court found that the cause of action arose entirely in Delhi and not within the jurisdiction of the High Court.
Final Decision: The appeal was allowed, and the order of the High Court was set aside. The writ petition was dismissed on the ground of lack of jurisdiction.
Umesh Chandra Banerjee, J. : On a plain reading of clauses (1) and (2) of Article 226 of the Constitution it appear" that a Writ can be issued against a Government Authority if its seat is within the territorial jurisdiction of the High Court or the cause of action has arisen wholly or in part within the territorial jurisdiction of the High Court. The introduction of the situs theory and the part of cause of action in the main body of the Article cannot in any way be stated to be a restriction on to the user of jurisdiction. As regards the situs theory, no difficulty is experienced in the matter of interpretation by reason of the express language of the Article, viz., "throughout the territories in relation to which it exercises jurisdiction." : in so far as the meaning to be attributed to the expression "cause of action", a long catena of judicial pronouncements set forth such a meaning to the effect that the expression means "the bundle of facts which the petitioner must prove, if traversed, to entitle him to a judgment in his favour by the court".
2. It is, however, worthwhile to note that the Supreme Court in its recent pronouncement in the case of Oil & Natural Gas Commission, (1994) 4 SCC 711 has had the occasion to examine the expression once again and in that context the Supreme Court observed as follows :
"5. Clause (1) of Article 226 begins with a non obstante clause notwithstanding anything in Article 32 - and provides that every High Court. shall have power 'throughout the territories in relation to which it exercises jurisdiction', to issue to any person or authority, including in appropriate cases, any Government, 'within those territories' directions, orders or writs, for the enforcement of any of the rights conferred by Part III or for any other purpose. Under clause (2) of Article 226 the High Court may exercise its power conferred by clause (1) if the cause of action wholly or in part, had arisen within the territory over which it exercises jurisdiction, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories. On a plain reading of the aforesaid two clauses of Article 226 of the Constitution it becomes clear that a High Court can exercise the power to issue directions, orders or writs for the enforcement of any of the fundamental rights conferred by Part III of the Constitution or for any other purpose if the cause of action, wholly or in part, had arisen within the territories in relation to which it exercises jurisdiction, notwithstanding that the seat of the Government or authority or the residence of the person against whom the direction, order or writ is issued is not within the said territories. In order to confer jurisdiction on the High Court at Calcutta, NICCO must show that at least a part of the cause of action had arised within the territorial jurisdiction of that Court. That is at best its case in the Writ petition.
6. It is well settled that the expression 'cause of action' means that bundle of facts which the petitioner must prove, if traversed, to entile him to a judgment in his favour by the Court. In Chand Kour vs. Pratab Singh, ILR (1889) 16 Cal 98 : 15 IA 156, Lord Watson said:
:-_ '. . . . . the cause of action has no relation whatever to the defence which may be set up by the defendant nor does it depend upon the character of the relief prayed for by the plaintiff. It refers entirely to the ground set forth in the plaint as the cause of action, or, in other words, to the media upon which the plaintiff asks the Court to arrive at a conclusion in his favour'.
Therefore, in determining the objection of lack of territorial jurisdiction the court must take all the facts pleaded in support of the cause of action into consideration albeit without embarking upon an enquiry as to the correctness or otherwise of the said facts. In other words the question whether a High Court has territorial jurisdiction to entertain a writ
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