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Issues:
1. Jurisdiction of the court based on the cause of action. 2. Interpretation of Clause 12 of the Letters Patent. 3. Consideration of balance of convenience in determining the forum for the suit. Jurisdiction of the Court Based on the Cause of Action: The appeal challenged an order refusing leave to sue in the Madras High Court for recovery of a specific sum. The plaintiff alleged that the cause of action arose mostly in Madras, while the defendants contended it arose solely in Cochin. The court emphasized that a litigant can file a suit in the High Court if the cause of action arises wholly within its jurisdiction, with leave required only if it arises partly within the jurisdiction. The court cited previous judgments to clarify the scope of Clause 12 of the Letters Patent regarding the court's jurisdiction over suits based on the location of the cause of action or the defendant's presence within the jurisdiction. Interpretation of Clause 12 of the Letters Patent: The court examined the provisions of Clause 12 of the Letters Patent, emphasizing that the court's jurisdiction is determined by the location of the cause of action or the defendant's presence within the jurisdiction. The court highlighted the importance of considering all relevant facts to determine jurisdiction, including the location of immovable property or where the cause of action arises. Reference was made to previous judgments from other High Courts to support the interpretation of the clause and the criteria for granting leave to sue in the High Court. Consideration of Balance of Convenience in Determining the Forum for the Suit: The court discussed the principle of balance of convenience in deciding the forum for the suit, which extends from the doctrine of 'forum convenient.' It noted that the court may decline to grant leave to sue even if the cause of action arises partly within its jurisdiction. The court cited previous judgments to emphasize that convenience is a crucial factor in determining the forum for the suit, and the court must assess the balance of convenience based on the facts presented. The court highlighted the need to consider the potential hardship on both parties and to make a decision based on the actual facts rather than assumptions. In conclusion, the court set aside the impugned order and remitted the case to the Original Side of the Court for a re-hearing and decision on whether leave should be granted, emphasizing the importance of proper adjudication based on all relevant facts before determining the forum for the suit.
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