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TMI Blog1995 (8) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... tration Act, 1940 for making the award a rule of the court. 2. The following are the facts : A contract was awarded by the appellant to the respondent for the mill project handling system at Korba (MP). The notice inviting tenders was floated from the appellant's office at Korba and in response to that, the respondent submitted its tender dated 30-7-1980. The same was accepted by the appellant at Korba. The acceptance was conveyed through telegram dated 14-10-1980, followed by a letter dated 20-11-1980/24-11-1980. The formal deed of contract was executed and signed by the parties on 27-4-1981. Certain claims were raised by the respondent/contractor by letter dated 31-9-1984. As per the terms of the contract dated 27-4-1981, claims were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal office at Delhi. However, no part of the cause of action arose in Delhi, according to the appellant. NTPC has its subordinate office at Korba for the purposes of carrying on the activities of Korba Super Thermal Power Project. 5. The appellant strongly relied upon the judgment of the Supreme Court made in Patel Roadways Ltd. v. Prasad Trading Co. [1991] 4 SCC 270, bearing civil appeal No. 3050 of 1991 wherein the Supreme Court had occasion to deal with section 20 of the Code of Civil Procedure, as amended in 1976. It was argued that if the NTPC had its sole office alone in Delhi and no subordinate/branch offices at all, then the suit could be filed at Delhi. But where it had a principal office at Delhi and also a subordinate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tually and voluntarily resides, or carries on business, or personally works for gain; or ( b )any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or ( c )the cause of action, wholly or in part arises. Explanation. A corporation shall be deemed to carry on business at its sole or principal office in India or, in respect of any case of action arise at any place where it has also a subordinate office, at su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether or not any business actually is carried on there) or the place of action (even though the principal office of the corporation is not located there) so long as there is a subordinate office of the corporation situated at such place. The linking together of the place where the cause of action arises with the place where a subordinate office is located, clearly shows that the intention of the Legislature is that, in the case of a corporation having subordinate offices for the purposes of clause ( a ) of section 20, the location of the subordinate office to be the relevant place for the filing of a suit and not the principal place of business. In other words, according to the Supreme Court, if a corpora- tion is having only one principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt does not merely have a sole office at Delhi, it had a principal office at Delhi and a subordinate office at Korba. In that event, the question will be whether the entire cause of action has arisen at the place where the subordinate office is located, namely, at Korba. On facts, it is clear that the entire cause of action has arisen at Korba in Madhya Pradesh. The courts at Delhi have, therefore, no jurisdiction even though the principal office of NTPC is at Delhi. Only the courts of Korba have jurisdiction as there is a subordinate office of NTPC and the entire cause of action arose there. We, therefore, hold that the arbitrator was wrong in filing the award in the Delhi High Court. 11. The judgment of the Delhi High Court in Shri K ..... X X X X Extracts X X X X X X X X Extracts X X X X
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