TaxTMI 
TaxTMI 
2014 (5) TMI 1231
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....ecuted between the petitioner and the respondent at Jaipur, Rajasthan, the land in question, where the project is being developed by the petitioner is situated in the city of Udaipur and the impugned notice dated 20.01.2014 issued by the respondent, informing the petitioner that it proposes to recall the loan amount extended to it in terms of the aforesaid Loan Agreement, had also been issued from the Jaipur Regional Branch of the respondent/Corporation. 3. In response, instead of addressing arguments on the points raised above, learned counsel for the petitioner had sought leave to withdraw the writ petition while reserving the petitioner's right to approach the appropriate Court vested with the territorial jurisdiction, for seeking its remedies in accordance with law. Leave, as prayed for, was granted to the petitioner and the petition was dismissed as withdrawn. In less than one week from the date of passing of the aforesaid order, the petitioner has filed the present application seeking recall of the aforesaid order and restoration of the writ petition. 4. The grounds taken for filing the present application are that on the relevant date, learned counsel for the petitione....
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....loan amounts right upto the issuance of the impugned loan recall notice, have taken place in the city of Jaipur and further, as the property over which the sub-leasehold rights have been secured by the petitioner to the respondent/Corporation, is situated at Udaipur, the Courts at Rajasthan would be vested with the territorial jurisdiction to deal with the issues raised in the present petition. 7. It was next contended on behalf of the respondent/Corporation that the petitioner has deliberately failed to implead the sub-lessors of the subject land, on which the project in question has been undertaken by the petitioner, though they are necessary and proper parties and the reason therefor is that they also happen to be the residents of Udaipur, Rajasthan. He states that the petitioner has a running dispute with the sub-lessors and having invoked an arbitration clause contained in the agreement executed between the parties, it has proceeded to file an arbitration petition in the Rajasthan High Court, being Arbitration Petition No.88/2011, that is pending consideration. He submitted that prior thereto, the sub-lessors had filed a writ petition before the Jodhpur Bench of the Rajasthan....
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....reads as under:- (2) The power conferred by clause (1) to issue directions, orders or writs to any Government, Authority or person may also be exercised by any High Court exercising jurisdiction in relation to the territories within which the cause of action, wholly or in part, arises for the exercise of such power, notwithstanding that the seat of such Government or Authority or the residence of such person is not within those territories. 11. The underlying object of the amendment was expressed in the following words :- Under the existing Article 226 of the Constitution, the only High Court which has jurisdiction with respect to the Central Government is the Punjab High Court. This involves considerable hardship to litigants from distant places. It is, therefore, proposed to amend Article 226. So that when any relief is sought against any Government, Authority or person for any action taken, the High Court within whose jurisdiction the cause of action arises may also have jurisdiction to issue appropriate directions, orders or writs. 12. The effect of the amendment is that it made the accrual of cause of action an additional ground to confer jurisdiction on a High Court und....
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....e court must take into consideration all the facts pleaded in support of the cause of action, albeit without embarking upon an enquiry as to the correctness or otherwise of the said facts. Stated differently, whether a High Court has the territorial jurisdiction to entertain a writ petition, must be answered on the basis of the averments made in the writ petition, the truth or otherwise whereof being immaterial. 17. In the case of Alchemist Limited (supra), the Supreme Court held that "the test is whether a particular fact(s) is (are) of substance and can be said to be material, integral or an essential part of the lis between the parties. If it is, it forms a part of the cause of action. If it is not, it does not form a part of the cause of action. It is also well settled that in determining the question, the substance of the matter and not the form thereof has to be considered." 18. Taking a cue from the ratio laid down in a catena of decisions of the Supreme Court as also the High Courts, it is evident that for the purpose of deciding as to whether the facts averred by a petitioner would or would not constitute a part of the cause of action, the court is required to examine as....
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....Hossain Khan (supra) and Ambica Industries (supra) about the applicability of the doctrine of forum convenience while opining that arising of a part of cause of action would entitle the High Court to entertain the writ petition as maintainable. 32. The principle of forum convenience in its ambit and sweep encapsulates the concept that a cause of action arising within the jurisdiction of the Court would not itself constitute to be the determining factor compelling the Court to entertain the matter. While exercising jurisdiction under Articles 226 and 227 of the Constitution of India, the Court cannot be totally oblivious of the concept of forum convenience. The Full Bench in New India Assurance Co. Ltd. (supra) has not kept in view the concept of forum convenience and has expressed the view that if the appellate authority who has passed the order is situated in Delhi, then the Delhi High Court should be treated as the forum convenience. We are unable to subscribe to the said view. 21. The Full Bench of this Court went on to summarize their discussion in the following manner:- 33. In view of the aforesaid analysis, we are inclined to modify the findings and conclusions of the Fu....
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....ed is also forum convenience" is not correct. (h) Any decision of this Court contrary to the conclusions enumerated hereinabove stands overruled. 22. The position of law that clearly emerges from the above is that the expression "cause of action" means and includes the circumstance resulting in breach of right or immediate occasion for the party to react. The said expression shall take in its fold the whole bundle of material facts which a party must prove in order to succeed. It also includes the circumstances and situations that entitle a party to maintain an action in court. For determining as to whether a particular fact constitutes a cause of action, would depend on the facts and circumstances of each case and while considering the facts averred, the court has to consider the substance of the matter and not the form. Simply because a miniscule part of the cause of action arises within the territorial jurisdiction of a particular High Court may not be sufficient to compel the said court to decide the matter on merits. In appropriate cases, discretion still rests with the court to decline to exercise the jurisdiction vested in it by invoking the doctrine of forum convenience ....
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.... main security, was executed at Jaipur. The loan amounts were disbursed by the respondent/Corporation at Jaipur and the loan installments were remitted by the petitioner in the account of the respondent/Corporation at Jaipur. Most importantly, the impugned loan recall notice was issued by the Regional Branch of the respondent/Corporation situated at Jaipur, Rajasthan. 26. As learned counsel for the petitioner has laid great emphasis on Sections 8.1 and 8.2(ii) under Article 8 (Miscellaneous) of the Loan Agreement to urge that this Court is equally vested with the territorial jurisdiction to entertain the writ petition, the said clauses are reproduced hereinbelow for ready reference :- Section 8.1 - Payment of monies by Borrower to HUDCO All moneys due and payable to HUDCO under this agreement shall be paid and remitted by the Borrower to the HUDCO at its registered office at "HUDCO BHAWAN", India Habitat Centre, Lodhi Road, New Delhi-110003 and also at its Regional Office Jaipur at HUDCO Bhawan, Vidhyut Marg, Jyoti Nagar, Jaipur-302005 (unless otherwise directed by HUDCO) in proper time and the borrower shall so arrange that the amounts in question is/are realized by HUDCO at ....
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....tion is that the registered office of the respondent is in Delhi and therefore it has chosen to approach this court. But that in itself would not be enough. For invoking the jurisdiction of this Court, the petitioner must be in a position to point out specific acts of omission/commission committed by the respondent/Corporation within the jurisdiction of this Court that would give it a cause of action to maintain the petition in Delhi. 29. It may be emphasized that the territorial jurisdiction must be determined on the facts pleaded in the petition, without delving into the correctness or otherwise of the averments made therein. At the same time, each and every fact pleaded in the writ petition does not ipso facto lead to the conclusion that those facts give rise to a cause of action with respect to a court's territorial jurisdiction, unless and until the facts that are pleaded are such that have a nexus with the lis or the dispute raised in the petition. Those facts that cannot have any bearing on the lis, do not give rise to a cause of action so as to confer territorial jurisdiction on the court. The decisions in the cases of Eastern Coalfields Ltd.(supra) & Canon Steels (P) ....