Jurisdiction under clause 12 of the Letters Patent depends on a real cause of action within territory and practical forum convenience.

Leave granted under clause 12 of the Letters Patent is discussed as revocable where no substantive part of the cause of action arises within jurisdiction and forum convenience favours the defendants. The text notes that mere receipt of a balance-sheet within Calcutta was treated as only a source of knowledge, not a jurisdictional fact, and that an unclear pleading about business carried on through an office was insufficient. It further states that section 20 of the Code of Civil Procedure was inapplicable to suits on the Original Side, and that the plaintiff's forum choice was not decisive against serious inconvenience to the defendants.

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Issues: Whether leave granted under clause 12 of the Letters Patent should be revoked on the ground that no part of the cause of action arose within jurisdiction and the balance of convenience favoured the defendants.

Analysis: The plaint was examined to determine whether any substantive part of the cause of action arose within the High Court's jurisdiction. The receipt of the balance-sheet within Calcutta was held to be only a means by which the plaintiff obtained knowledge of the alleged investments and not a challenge to the balance-sheet itself. The pleadings did not disclose any clear averment that the company carried on business within jurisdiction through the stated office, and section 20 of the Code of Civil Procedure, 1908 was held inapplicable to suits on the Original Side. On the facts pleaded, the company's registered office, books and records were outside jurisdiction, and the defendants would be put to serious inconvenience if required to defend the suit there. The plaintiff's choice of forum was therefore not conclusive where the balance of convenience and forum convenience pointed the other way.

Conclusion: Leave under clause 12 of the Letters Patent was rightly revoked and the defendants obtained the relief sought.

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