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2015 (3) TMI 1390 - HC - Customs


Issues Involved:
1. Territorial Jurisdiction of the High Court
2. Maintainability of the Writ Petition

Detailed Analysis:

1. Territorial Jurisdiction of the High Court:

The primary issue addressed in the judgment is whether the Karnataka High Court has territorial jurisdiction to entertain the writ petition. The Division Bench had previously directed that the objections regarding territorial jurisdiction should be decided as a preliminary issue.

Factual Matrix:
The petitioner, a company engaged in the manufacture and export of gold jewellery, imported Gold Dore Bars at Delhi Port under a specific notification. The petitioner contended that the entire cause of action arose within the jurisdiction of the Karnataka High Court since their registered and corporate offices are located in Bangalore, and the business operations, including import and export, are conducted from Bangalore.

Contentions:
- Petitioner: The petitioner argued that the writ petition is maintainable before the Karnataka High Court because the impugned communication was addressed to their Bangalore office, and part of the cause of action (including business operations and receipt of communication) occurred in Bangalore.
- Respondent: The respondent contended that the entire cause of action arose in New Delhi, where the importation and clearance of goods took place, and therefore, the Karnataka High Court lacks jurisdiction.

Legal Framework:
The Court examined Article 226(1) and (2) of the Constitution of India. Article 226(2) allows a High Court to exercise jurisdiction if the cause of action, wholly or in part, arises within its territory. The Court referred to several judgments, including Kusum Ingots & Alloys Ltd. v. Union of India and Another, which clarified that even a small fraction of the cause of action arising within the jurisdiction is sufficient for the High Court to entertain the petition.

Findings:
The Court found that the importation, clearance, and delivery of the consignment occurred entirely in New Delhi and Uttarakhand, with no part of the cause of action arising in Karnataka. The mere location of the registered office or receipt of communication in Bangalore does not constitute a sufficient cause of action within the jurisdiction of the Karnataka High Court.

Conclusion:
The Court concluded that it does not have territorial jurisdiction to entertain the writ petition as no part of the cause of action arose within its jurisdiction. The writ petition was dismissed on this ground.

2. Maintainability of the Writ Petition:

The maintainability of the writ petition was contingent upon the determination of territorial jurisdiction. Since the Court found that it lacked jurisdiction, the writ petition was deemed not maintainable before the Karnataka High Court.

Order:
1. The writ petition was dismissed as not maintainable before the Karnataka High Court.
2. No opinion was expressed on the merits of the claim made in the writ petition, and the merits were kept open for consideration by the appropriate court.
3. Costs were made easy.

Summary:
The Karnataka High Court dismissed the writ petition on the grounds of lack of territorial jurisdiction, as the cause of action arose entirely in New Delhi and Uttarakhand, not in Karnataka. The Court emphasized that the location of the petitioner's registered office in Bangalore and the receipt of communication there did not confer jurisdiction. The merits of the case were left open for consideration by the appropriate court.

 

 

 

 

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