2024 (6) TMI 196

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....writ, order or direction directing Respondent no. 1 to appoint an investigator and complete the investigation under relevant provisions of law in a time-bound manner to take appropriate action in terms of the order dated 07.12.2023 passed by the Hon'ble National Company Law Tribunal, Bengaluru, Special Bench in case No. C.P. No. 14/BB/2022 (b) Pass such other and further order as this Hon'ble Court may deem fit and proper in the interest of Justice." FACTUAL BACKGROUND: 2. The genesis of the instant writ lies in the order dated 07.12.2023 passed by the learned Judges of the Special Bench, NCLT [National Company Law Tribunal] Bengaluru in CP No. 14/BB/2022 in the proceedings under Section 213 and 221 of the Companies Act, 2013 read with ....

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....nding over the requisite material documents of R-1 Company. (d) The Registry of this Tribunal is also directed to forward a copy of this Order forthwith to the Secretary and Joint Secretary, Ministry of Corporate Affairs, Government of India, 5th Floor, 'A' Wing, Shastri Bhawan, Dr. R.P. Road, New Delhi-110001 for information and necessary follow-up action." 3. Learned counsel for the petitioner urged that despite very damning observations made by the NCLT with regard to the conduct of the business/affairs of the company (in liquidation) by its directors and owners of the land, and thereby, defrauding the investors to the tune of Rs. 136,50,19,085/-(Rupees One Hundred Thirty Six Crores Fifty Lacs Nineteen Thousand and Eighty Five Only), ....

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....e High Court could issue a writ when the person or the authority against whom the writ is issued is located outside its territorial jurisdiction, provided the cause of action wholly or partially arises within the Court's territorial jurisdiction. Needless to state that the expression 'cause of action' for exercising powers under Article 226 (2) of the Constitution of India is to be assigned the same meaning as assigned to such an expression under Section 20 (c) of the CPC [Code of Civil Procedure, 1908]. 9. Further, merely because the seat or the main head office of the respondent is located in Delhi would not be sufficient to confer jurisdiction upon this Court. Reference in this regard can be invited to a decision by the Supreme Court i....

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....Ministry of Corporate Affairs can appoint or entrust the investigation to the SFIO from Delhi would not by itself be sufficient to invoke the territorial jurisdiction of this Court. 12. Accordingly, the present Writ Petition is dismissed for not being maintainable before this Court for lack of territorial jurisdiction.       ----------------- Notes: 1. [226. Power of High Courts to issue certain writs (1) Notwithstanding anything in article 32 2[***] every High Court shall have powers, throughout the territories in relation to which it exercise jurisdiction, to issue to any person or authority, including in appropriate cases, any Government, within those territories directions, orders or writs, including 3[writs in th....