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Issues Involved:
1. Jurisdiction of the High Court. 2. Availability of alternate remedy. 3. Validity of the IRDA's refusal to renew the petitioner's license based on non-disclosure of disputes and investment of insurance money. Issue-Wise Detailed Analysis: 1. Jurisdiction of the High Court: The preliminary objection regarding the territorial jurisdiction of the Bombay High Court was raised by the respondents. The respondents argued that since the impugned order was passed at Hyderabad, the Bombay High Court lacked jurisdiction. However, the court noted that the registered office of the petitioner company is located in Mumbai, and part of the cause of action arose within the territorial jurisdiction of the Bombay High Court. The court referred to Article 226(2) of the Constitution, which allows a High Court to exercise jurisdiction if any part of the cause of action arises within its territory. The court cited several Supreme Court decisions, including *Navinchandra N. Majithia v. State of Maharashtra* and *Dinesh Chandra Gahtori v. Chief of Army Staff*, to support its conclusion that the Bombay High Court had jurisdiction to entertain the petition. 2. Availability of Alternate Remedy: The respondents argued that the petitioners had an alternate remedy available under the IRDA Regulations and should be relegated to that forum. However, the court decided to hear the matter on merits due to the serious allegations against the Chairman of the IRDA and the fact that the Division Bench had previously directed the IRDA to constitute a Committee to decide the renewal application. The court emphasized that it would not be just and proper to relegate the petitioners to an alternate remedy in light of the allegations and the procedural history of the case. 3. Validity of the IRDA's Refusal to Renew the Petitioner's License: The court examined the grounds mentioned in the impugned order for refusing the renewal of the petitioner's license. The first ground was the non-disclosure of a dispute between Bhaichand (the second petitioner) and ECGC. The court found that this ground was irrelevant as the dispute had been settled before the impugned order was passed, and no dispute was pending at the time of the renewal application. The court held that the non-disclosure of this settled dispute was not a valid reason to reject the renewal application. The second ground was the investment of insurance money in fixed deposits, which allegedly violated Regulation 23 of the IRDA Regulations. The court noted that this issue should have been brought to the petitioners' attention during the hearing of the renewal application, allowing them to provide an explanation. The court emphasized the importance of adhering to the principles of natural justice and providing a fair opportunity for the petitioners to address the allegations. The court cited the decision of the House of Lords in *B. Surinder Singh Kanda v. Government of the Federation of Malaya*, which underscores the necessity of informing the affected party about the case against them and allowing them to correct or contradict the evidence. In conclusion, the court found that the IRDA had not properly applied its mind while rejecting the renewal application and had failed to provide a fair hearing to the petitioners. The court directed the IRDA to reconsider the renewal application afresh, excluding the irrelevant ground of the Bhaichand-ECGC dispute and focusing on the alleged violation of Regulation 23. The court instructed the IRDA to provide an opportunity for the petitioners to submit their explanation and take a fresh decision within four weeks. Conclusion: The Bombay High Court held that it had jurisdiction to entertain the petition, declined to relegate the petitioners to an alternate remedy, and directed the IRDA to reconsider the renewal application afresh, ensuring adherence to the principles of natural justice. The court emphasized the need for a fair hearing and proper consideration of relevant grounds before making a decision.
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