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TMI Blog2019 (2) TMI 1927X X X X Extracts X X X X X X X X Extracts X X X X ..... , entertained the dispute between the Appellant-Union and Respondent No. 1-Company and passed a recovery order; and Third, one of the reliefs claimed in the petition (SCA) pertains to non-payment of outstanding wages payable to the workers by Respondent No. 1-Company - thus, the part of the cause of action as contemplated in Article 226(2) of the Constitution has arisen within the territorial jurisdiction of the Gujarat High Court for filing the petition (SCA) to claim appropriate reliefs in relation to such dispute against Respondent No. 1-Company. The Appellant's petition (SCA) was maintainable in the Gujarat High Court inasmuch as the part of the cause of action to file such petition did accrue to the Appellant herein (Petitioner) within the territorial jurisdiction of the Gujarat High Court - the SCA was required to be decided on merits by the Gujarat High Court - Appeal allowed. - Civil Appeal No. 5360 of 2010 - - - Dated:- 14-2-2019 - Abhay Manohar Sapre And Dinesh Maheshwari, JJ. For the Appellant (s) : Ms. Anushree Prashit Kapadia, AOR Ms. Kavita Bhradwaj, Adv. For the Respondent(s) : Mr. Gautam Awasthi, Adv. Mr. Ayush Choudhary, Adv. Mr. Devanshu Yada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank (R-2), therefore, filed a claim petition before the Debt Recovery Tribunal (for short the DRT) at Calcutta against Respondent No. 1-Company for recovery of their unpaid loan amount with interest. 9. By order dated 04.03.2003, the DRT allowed the claim petition and ordered for sale of the properties of Respondent No. 1-Company after giving due publicity. The DRT also appointed one Receiver to take appropriate steps in this regard. The Receiver informed the Appellant-Union accordingly. 10. It is with these background facts, the Appellant-Union filed a petition (Special Civil Application No. 12212 of 2004) in the High Court of Gujarat at Ahmedabad out of which this appeal arises. The SCA was filed against the Indian Bank (Respondent No. 2 herein) and the Company (Respondent No. 1 herein). The Appellant claimed the following reliefs in their SCA: A. To issue an order, direction in the nature of mandamus and/or any other appropriate writ, order or direction, directing the Respondent No. 1 Indian Bank, Kolkata, to deposit the 50% amount of the sale proceeds of the Porbandar H.M.P. Cement with the District Collector, Porbandar, and the District Collector be directed to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the entire cause of action between the parties has accrued in the State of Calcutta where the company's registered office is located and where the DRT had also entertained the claim petition filed by the Indian Bank (Respondent No. 2 herein) against the Company (Respondent No. 1 herein) and had passed the orders in the said claim petition. 13. The Respondent Nos. 1 2, therefore, contended that the said SCA was liable to be dismissed as being not maintainable for want of territorial jurisdiction of the Gujarat High Court. 14. The Single Judge by order dated 26.10.2005 overruled the preliminary objection and held that the Gujarat High Court has the territorial jurisdiction to entertain the SCA. 15. Respondent No. 1 (Company) felt aggrieved and filed the LPA before the Division Bench. By impugned order, the Division Bench allowed the LPA, set aside the order of the Single Judge and dismissed the SCA. The Division Bench held that the Gujarat High Court has no territorial jurisdiction to entertain the SCA in question because no part of the cause of action has accrued to file such petition (SCA) in the Gujarat High Court. 16. In other words, the Division Bench was of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in relation to the territories within which the cause of action, wholly or in part, arises for the exercise of such power, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories. (3) Where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on, or in any proceedings relating to, a petition under Clause (1), without- (a) furnishing to such party copies of such petition and all documents in support of the plea for such interim order; and (b) giving such party an opportunity of being heard, makes an application to the High Court for the vacation of such order and furnishes a copy of such application to the party in whose favour such order has been made or the counsel of such party, the High Court shall dispose of the application within a period of two weeks from the date on which it is received or from the date on which the copy of such application is so furnished, whichever is later, or where the High Court is closed on the last day of that period, before the expiry of the next day afterwards on which the High Court is open; and if the applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Labour Court, Junagadh, which is also a part of State of Gujarat, entertained the dispute between the Appellant-Union and Respondent No. 1-Company and passed a recovery order; and Third, one of the reliefs claimed in the petition (SCA) pertains to non-payment of outstanding wages payable to the workers by Respondent No. 1-Company. 27. In the light of these three reasons, we are of the view that the part of the cause of action as contemplated in Article 226(2) of the Constitution has arisen within the territorial jurisdiction of the Gujarat High Court for filing the petition (SCA) to claim appropriate reliefs in relation to such dispute against Respondent No. 1-Company. 28. In our considered opinion, the expression the cause of action, wholly or in part, arises occurring in Article 226(2) of the Constitution has to be read in the context of Section 20(c) of Code of Civil Procedure which deals with filing of the suit within the local limits of the jurisdiction of the Civil Courts. 29. Indeed, the question as to whether the cause of action for filing the petition, wholly or in part, arose in the context of territorial jurisdiction of the High Court is required to be dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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