( 1 ) THIS is an appeal from the order of a learned single judge of this court dated March 31, 1981.

( 2 ) THE short question in this appeal is whether Delhi courts have jurisdiction to try the suit filed by the appellant, M/s. Prahlad Rai Dalmia against the respondent, Union of India, Dalmia filed a suit against the Union of India seeking declaration that the contract, namely, the Acceptance of Tender No. BTX-7/62707/364/pacd entered into between the parties was not a valid and a concluded contract. In paragraph 24 of the plaint the jurisdiction was sought to be conferred on the courts in Delhi by making the following averments:

"24. That the Defendant Union of India have its principal office at the functions at New Delhi within the territorial jurisdiction of this Hon ble Court. . . . . . . . . "

( 3 ) THIS was tried as a preliminary issue. It was decided by the learned judge against Dalmia. He hold that Delhi courts have no jurisdiction to lry this suit. Consequently he ordered the plaint to be returned to the plaintiff for presentation to the proper court. From his order Dalmia appeals to this Court.

( 4 ) THIS question of jurisdiction came before a division bench