Clause 12 jurisdiction depends on carrying on business through a local office, without importing cause of action limits.

A company may be treated as carrying on business within jurisdiction for Clause 12 of the Letters Patent when it operates through a regional office there, so the High Court can entertain the suit on that basis. The explanation to Section 20 of the Code of Civil Procedure cannot be imported into Clause 12 to require that part of the cause of action also arise within jurisdiction. Where jurisdiction is founded on the defendant carrying on business within the local limits, the cause of action requirement does not control Clause 12 jurisdiction.

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Issues: (i) Whether a company having a regional office within the territorial limits of the Bombay High Court can be said to be carrying on business there for the purposes of Clause 12 of the Letters Patent; (ii) Whether the explanation to Section 20 of the Code of Civil Procedure, 1908 can be read into Clause 12 of the Letters Patent so as to require that part of the cause of action must also arise within jurisdiction.

Issue (i): Whether a company having a regional office within the territorial limits of the Bombay High Court can be said to be carrying on business there for the purposes of Clause 12 of the Letters Patent.

Analysis: Clause 12 permits the High Court to entertain a suit where the defendant, at the time of commencement of the suit, dwells or carries on business within jurisdiction. The plaint specifically averred that the defendant conducted its operations through its Mumbai office. The Court applied the settled principle that a corporation may carry on business through a branch or regional office, and that for Clause 12 purposes the presence of such an office is sufficient.

Conclusion: Yes. The defendant was carrying on business within Mumbai through its regional office, satisfying Clause 12.

Issue (ii): Whether the explanation to Section 20 of the Code of Civil Procedure, 1908 can be read into Clause 12 of the Letters Patent so as to require that part of the cause of action must also arise within jurisdiction.

Analysis: Section 120 of the Code of Civil Procedure, 1908 makes Section 20 inapplicable to the High Court in the exercise of its original civil jurisdiction. The special jurisdiction under Clause 12 therefore operates on its own terms, and the requirement of cause of action becomes irrelevant where jurisdiction is founded on the defendant carrying on business within the local limits of the Court.

Conclusion: No. The explanation to Section 20 cannot be imported into Clause 12, and the cause of action need not arise within jurisdiction when the defendant carries on business there.

Final Conclusion: The appeal succeeded, the refusal of leave was set aside, and the summary suit was held maintainable on the original side of the High Court.

Ratio Decidendi: For jurisdiction under Clause 12 of the Letters Patent, the High Court may entertain a suit if the defendant carries on business within its territorial limits, and the explanation to Section 20 of the Code of Civil Procedure, 1908 cannot be applied to restrict that jurisdiction.

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