Extra-territorial jurisdiction barred challenge to another State's recovery certificate; proper forum lay where the certificate originated.

The Karnataka HC noted that the certificate for recovery of alleged sales tax arrears originated in Maharashtra, so any challenge to that certificate or the related recovery proceedings had to be brought before the court with jurisdiction over that State. It declined to exercise extra-territorial jurisdiction over actions taken by another State and treated the Bombay High Court as the proper forum for the petitioners' grievance. The petitions were rejected.

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Issues: Whether the High Court could examine the validity of the certificate issued by the authorities in Maharashtra for recovery of alleged sales tax arrears and restrain action on the demand notices.

Analysis: The cause of action arose in Maharashtra, where the certificate originated. Any challenge to the certificate or the recovery proceedings had to be taken before the High Court having jurisdiction over that State. The Court declined to exercise any extra-territorial jurisdiction over actions taken by another State and held that the proper forum for the petitioners' grievance was the Bombay High Court.

Outcome: The petitions were rejected.

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