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Issues: (i) Whether the High Court was justified in transferring the suit under Section 24 of the Code of Civil Procedure, 1908 without recording reasons and without considering the rival pleadings.
Analysis: The power of transfer under Section 24 is wide, but it must be exercised with due care, caution and circumspection and on relevant considerations such as convenience, apprehension of lack of fair trial, and the ends of justice. An order transferring a case must show application of mind to the circumstances that are said to justify transfer. Where allegations and counter-allegations are made and the rival case on delay and prejudice is disputed, the authority must at least prima facie consider the material and state the basis for its conclusion, without deciding the merits of the suit. An order passed merely because transfer appeared 'appropriate', without any discernible reasoning, amounts to exercise of power in an arbitrary manner.
Conclusion: The transfer order was unsustainable and was set aside.