IN THE HIGH COURT OF GAUHATI (SHILLONG BENCH)
Iqbal Ahmed Ansari and Anima Hazarika, JJ.
Hindustan Paper Corporation Ltd. and Anr. – Appellants
Vs.
Synergy Composites Pvt. Ltd. and Anr. – Respondent
Writ Appeal No. 5 (SH) of 2005
Decided On: 29.04.2005
The Shillong Bench of the Gauhati High Court lacks territorial jurisdiction to entertain a writ petition if the cause of action has not arisen, wholly or in part, within the State of Meghalaya.
Fact of the Case:
The Petitioner Company, a private company having a plant at Byrnihat, within the territorial limits of the State of Meghalaya, produces various products made of bamboo dust and other waste materials. The Respondent Corporation, a public company, is a Govt. of India Enterprise with its registered office at Jagiroad, Marigaon, located within the State of Assam. Pursuant to a tender process, the Petitioner Company had been awarded a disposal order for collection and removal of the entire quantity of bamboo dust generated at the plant of the Respondent Corporation, at Jagiroad, until 31.03.2005. In breach of this agreement, the Respondent Corporation floated Anr. NIT, on 30.08.03, for disposal of their bamboo dust. The Petitioner Company approached the Shillong Bench of the Gauhati High Court with W.P. (C) No. 258 (SH)/03. By judgment and order, dated 13.02.04, the said writ petition was allowed and the NIT, dated 30.08.03 was quashed. Thereafter, on 08.01.05, the Respondent Corporation issued Anr. NTT, dated 18.01.05, inviting tender for disposal of the bamboo dust from the premises of the said paper mill of the Respondent Corporation, the disposal order to be granted being with effect from 01.04.05 i.e. after the expiry of the agreement subsisting between the parties concerned (whereby the Petitioner Company was the highest bidder amongst the valid tenderers). The Petitioner Company participated in the tender process floated on 08.01.05, but despite the fact that the tender papers, submitted by the Respondent No. 3, namely, M/s Kiran Enterprise, Jagiroad, were not in accordance with the terms of the NIT, dated 08.01.2005, the Respondent Corporation was bent up giving disposal order in favour of the Respondent No. 3 aforernentioned, though the Petitioner Company was prepared to pay, without prejudice to its rights, the amount of Rupees 251 per metric ton for bamboo dust, which was the offer of the Respondent No. 3.
Finding of the Court:
The Shillong Bench of the Gauhati High Court lacks territorial jurisdiction to entertain a writ petition if the cause of action has not arisen, wholly or in part, within the State of Meghalaya.
Issues: Whether the Shillong Bench of the Gauhati High Court had territorial jurisdiction to entertain the writ petition.
Ratio Decidendi: The territorial jurisdiction of a High Court under Article 226 of the Constitution of India is determined by the place where the cause of action arises. In the present case, the cause of action arose entirely at the premises of the Respondent Corporation at Jagiroad, which falls within the State of Assam and beyond the territorial limits of the State of Meghalaya. Therefore, the Shillong Bench of the Gauhati High Court lacked territorial jurisdiction to entertain the writ petition.
Final Decision: The appeal was allowed, the impugned order was set aside and quashed, and the Registry at the Shillong Bench was directed to return the writ petition to the writ Petitioner by making necessary endorsement in this regard on the body of writ petition permitting the writ Petitioner to present the writ petition at the appropriate Bench.
I.A. Ansari, J.
1. This appeal has arisen out of the order, dated 16.03.05, passed in W.P. (C) No. 54 (SH)/05, whereby the learned Single Judge overruled the objection raised by the Appellant Corporation as regards the maintainability of the writ petition on the ground that Shillong Bench of the Gauhati High Court had no territorial jurisdiction to entertain the writ petition.
2. Put in a narrow campass, the facts, which are material for disposal of this appeal, emerge as follows:
(i) The writ Petitioner is a private company having a plant at Byrnihat, within the territorial limits of the State of Meghalaya, and produces various products made of bamboo dust and other waste materials, the writ Petitioner being hereinafter referred to as "the Petitioner Company". The Respondent, namely, Hindustan Paper Corporation Ltd., a public company, is a Govt. of India Enterprise with its registered office at Jagiroad, Marigaon, located within the State of Assam, and the same is hereinafter referred to as "the Appellant Corporation". Pursuant to a tender process, which had started on the basis of an NIT, dated 14.02.2000, issued by the Appellant Corporation, the Petitioner Company had been awarded a disposal order for collection and removal of the entire quantity of bamboo dust generated at the plant of the Appellant Corporation, at Jagiroad, until 31.03.2005 and in terms of this disposal order, the Petitioner Company had been collecting the dust for its plant at Byrnihat. In breach of this agreement existing between the Petitioner Company and the Appellant Corporation, when the Appellant Corporation had floated Anr. NIT, on 30.08.03, for disposal of their bamboo dust, the Petitioner Company approached the Shillong Bench of this High Court with W.P. (C) No. 258 (SH)/03. By judgment and order, dated 13.02.04, the said writ petition was allowed and the NIT, dated 30.08.03 was quashed. Thereafter, on 08.01.05, the Appellant Corporation issued Anr. NTT, dated 18.01.05, inviting tender for disposal of the bamboo dust from the premises of the said paper mill of the Appellant Corporation, the disposal order to be granted being with effect from 01.04.05 i.e. after the expiry of the agreement subsisting between the parties concerned (whereby the Appellant Corporation had, as indicated hereinbefore, undertaken to allow the Petitioner Company to collect bamboo dust from the plant of the Appellant Corporation till 31.03.05). The Petitioner Company participated in the tender process floated on 08.01.05, but despite the fact that the tender papers, submitted by the Respondent No. 3, namely, M/s Kiran Enterprise, Jagiroad, were not in accordance with the terms of the NIT, dated 08.01.2005, the Appellant Corporation was bent up giving disposal order in favour of the Respondent No. 3 aforernentioned, though the Petitioner Company was the highest bidder amongst the valid tenderers. The Petitioner Company was even prepared to pay, without prejudice to its rights, the amount of Rupees 251 per metric ton for bamboo dust, which was the offer of the Respondent No. 3.
(ii) With the allegations that the Appellant Corporation was, thus, bent upon granting disposal order in favour of the Respondent No. 3 unjustly and unlawfully, the Petitioner Company filed the W.P. (C) 54 (SH)/2005 aforementioned, at the Shillong Bench of the Gauhati High Court, seeking issuance of appropriate writ(s) commanding the Appellant Corporation to grant disposal order of bamboo dust in terms of the NIT, dated 08.01.05, aforementioned in favour of the Petitioner Company and also an interim direction to the Appellant Corporation not to issue or give effect to any fresh contract/disposal order for collection or removal of bamboo dust with out leave of this Court.
(iii) The Appellant Corporation appeared in the writ petition and raised, amongst Ors., a preliminary objection as regards its maintainability on the ground that no case of action had arisen within the jurisdiction of the State of
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