Territorial jurisdiction depends on cause of action; a disclaimer-backed banker's reference did not create forum liability.

Territorial jurisdiction in a civil suit depends on a material part of the cause of action arising within the forum. The court held that the pleadings and documents showed the relevant enquiry, banker's report, delivery arrangements and remittance were centred outside India, and the alleged wrongful conduct against the second defendant occurred outside Madras. A banker's reference given in confidence and with an express disclaimer of responsibility did not itself create liability or an actionable cause of action within the jurisdiction. Leave to sue was therefore liable to be revoked and the plaint could not be maintained in that forum against the second defendant.

---

---

Issues: Whether the leave to sue was liable to be revoked and the plaint rejected for want of territorial jurisdiction, on the footing that no part of the cause of action arose within the court's jurisdiction.

Analysis: The pleadings and documents showed that the enquiry, the banker's report, the delivery of goods and the remittance arrangements were centred outside India. The report furnished by the second defendant was expressly given in confidence and without responsibility. The court applied the settled principle that cause of action comprises the bundle of material facts giving rise to a right to sue, and that jurisdiction must rest on a part of that cause of action arising within the forum. Since the plaintiffs' grievance against the second defendant arose from a disclaimer-backed reference and the alleged wrongful conduct was located outside the jurisdiction, no actionable part of the cause of action was established in Madras. The inconvenience of forcing foreign defendants to contest proceedings in this forum also supported revocation of leave.

Conclusion: The court had no territorial jurisdiction as against the second defendant, and the leave granted to sue was liable to be revoked. The objection to the suit succeeded.

Final Conclusion: The suit could not be maintained in that forum against the second defendant, and the ex parte leave to sue was set aside.

Ratio Decidendi: Territorial jurisdiction in a civil suit depends on a material part of the cause of action arising within the forum, and a banker's reference issued with an express disclaimer of responsibility does not, by itself, create such a cause of action or liability.

---