ORDER

This appeal by special leave arises from the order of the Division Bench of the Delhi High Court made on February 19, 1980 in FAO (OS) No. 56/79. The respondents had filed a suit on the original side of the Delhi High Court for perpetual injunction against the appellant from enforcing bank guarantee dated July 16, 1977. The learned single Judge held that no part of the cause of action had arisen within the jurisdiction of the High Court and, therefore, the Court lacked jurisdiction to entertain the suit. On appeal, the Division Bench concluded that since the bank guarantee was executed in Delhi and payments were to be made in Delhi, the High Court has jurisdiction to try the suit and the direction of the learned single Judge to return the plaint for presentation to the proper Court was not correct in law. Thus this appeal by special leave.

2. The only controversy is whether the Delhi High Court has jurisdiction to entertain the suit. It is an admitted position that the contract was executed in Bombay. It is also an admitted position that the performance of obligations and liabilities under the contract was required to be done in Bombay inasmuch as Cargo of livestock was to be t