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TMI Blog2023 (11) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... torial jurisdiction of this High Court to entertain the writ petition was taken by learned counsel for Respondents No. 1 and 2. The case was, therefore, directed to be listed for consideration on objection to maintainability of the writ petition, keeping in view the settled principle that where an objection to maintainability of a petition is raised, that has to be decided first before entering into the merits of the case. Though no reply has been filed, learned counsel for Respondents No. 1 and 2 argued on the issue of territorial jurisdiction of this Court in entertaining the writ petition stating that to decide the aforesaid issue of territorial jurisdiction, reply is not necessary. 2. We have heard learned counsel for the parties on the objection to the territorial jurisdiction of this Court to entertain this writ petition. 3. Learned counsel for Respondents No. 1 and 2 contended that as no part of cause of action has arisen within the territorial jurisdiction of this Court, this Court would not have jurisdiction and the objection to maintainability of the writ petition is liable to be sustained. Learned counsel further argued that the facts as pleaded in the writ petition e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither seeking quashment of impugned notifications as arbitrary and discriminatory or alternative relief for modifying notification no. 50/2023-Customs dated 25.08.2023. In support of his submissions, learned counsel for Respondents No. 1 and 2 has placed reliance upon the decisions of the Hon'ble Supreme Court in the cases of Union of India & Others Vs. Adani Exports Ltd. & Another (2002) 1 SCC 567 and State of Goa Vs. Summit Online Trade Solutions Private Limited & Others (2023) 7 SCC 791. 4. Per contra, learned counsel for the petitioner contended that the petitioner seeks to challenge the validity of the notification on the proposed ground that it is discriminatory and violative of Article 14 of the Constitution of India as it seeks to extend the benefit on the basis of payment only through one mode, i.e., letters of credit and excluding all other modes. The factum of payment having been received at Jaipur through the mode of Foreign Inward Remittance is not only relevant but integral to the cause of action and, therefore, a part of cause of action has arisen within the territorial jurisdiction of this Court. Learned counsel for the petitioner further contended that the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the writ petition. Copies of agreements have also been placed on record which also do not show the places where the contracts were executed. According to the petitioner, it received advance amount from all the three buyers in the form of Foreign Inward Remittance. Copies of advance so received have also been annexed which show that those payments were received at Jaipur. 7. As pleaded, a notification bearing no. 49/2023-Customs dated 25.08.2023 was issued by the respondents levying 20% duty (on value) on the export of Parboiled Rice effective immediately/from the date of coming into force of the said notification. Another notification bearing no. 50/2023-Customs dated 25.08.2023 was also issued by the respondents wherein it was notified that the export duty, imposed vide notification no. 49/2023-Customs shall remain effective till 15.10.2023. It was also notified that the quantity of Parboiled Rice that has entered the customs stations for the purpose of exportation before 25th day of August, 2023 and for which the proper officer has not issued an order permitting clearance and which is backed by irrevocable letters of credit would continue to be exempted/shall remain exempted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n an arbitrary way and in such a manner, they operate retrospectively, which according to the petitioner, is impermissible in law. Further ground raised is that the petitioner, by virtue of those two notifications, is being punished/penalised by the law of which it had no knowledge at the time of executing the contracts or even at the time when goods were gated-in, the notifications seek to impose tax liability for a taxing event which took place prior to issuance of notifications. Further ground raised is that though notification no. 50/2023-Customs dated 25.08.2023 allows export of goods without payment of customs duty in those cases where export of goods are backed by irrevocable letters of credit, on literal reading, the same seeks to exclude, as a class, all those cases of export of goods where payments have been made by other modes including advance payment, as is the case of the petitioner. 11. If we look into the entire pleadings in the writ petition, there is nothing to show that the clearance has been withheld on the ground that payment is through the mode of cash and not through irrevocable letters of credit. In fact, there is no specific averment to that effect in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were to be extended through the port situated at Chennai. As those benefits were not admitted for various reasons, the respondents therein filed special civil applications before the High Court at Ahmedabad. In support of the case that a part of cause of action had arisen within the territorial jurisdiction of the Court at Ahmedabad, the facts were noted by the Hon'ble Supreme Court as below: "13. In spite of the above admitted facts, the respondents herein plead that as per the plea raised by them in para 16 of the special civil application, the following facts give rise to the cause of action conferring territorial jurisdiction on the Court at Ahmedabad. They are: (i) the respondents carry on their business of export and import from Ahmedabad; (ii) their orders of export and import are placed from and are executed at Ahmedabad; (iii) documents and payments for export and import are sent/made at Ahmedabad; (iv) the credit of duty claimed in respect of exports were handled from Ahmedabad since export orders were received at Ahmedabad and payments also received at Ahmedabad; (v) non-granting and denial of utilisation of the credit in the passbook will affect the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought for by the respondents in their civil applications so as to constitute the cause of action at Ahmedabad. 15. Article 226(2) of the Constitution of India which speaks of the territorial jurisdiction of the High Court reads : "226. (2) The power conferred by clause (1) to issue directions, orders or writs to any Government, authority or person may also be exercised by any High Court exercising jurisdiction 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." 16. It is clear from the above constitutional provision that a High Court can exercise the jurisdiction in relation to the territories within which the cause of action, wholly or in part, arises. This provision in the Constitution has come up for consideration in a number of cases before this Court. In this regard, it would suffice for us to refer to the observations of this Court in the case of Oil and Natural Gas Commission v. Utpal Kumar Basu (1994) 4 SCC 711 (SCC at p. 713) wherein it was held: "Under Article 226 a H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the respondents are carrying on the business of export and import or that they are receiving the export and import orders at Ahmedabad or that their documents and payments for exports and imports are sent/made at Ahmedabad, has no connection whatsoever with the dispute that is involved in the applications. Similarly, the fact that the credit of duty claimed in respect of exports that were made from Chennai were handled by the respondents from Ahmedabad have also no connection whatsoever with the actions of the appellants impugned in the application. The non-granting and denial of credit in the passbook having an ultimate effect, if any, on the business of the respondents at Ahmedabad would not also, in our opinion, give rise to any such cause of action to a court at Ahmedabad to adjudicate on the actions complained against the appellants." The considerations as above were applied to the factual premise of that case and it was authoritatively held by the Hon'ble Supreme Court that all those facts stated in para 13 would not constitute even a part of cause of action so as to give territorial jurisdiction to the High Court at Ahmedabad. Crucial aspect taken into consideration w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial jurisdiction of this Hon'ble High Court." Apart from these two sentences, nothing more has been averred in support of territorial jurisdiction of the High Court. 13. From the above, it is clear that according to the petitioning company the cause of action has arisen in Sikkim only, meaning thereby the whole of the cause of action and not part of it; additionally, it is stated that all the respondents are located within the territorial jurisdiction of the High Court which is factually incorrect." The cause of action in the aforesaid case was explained as below : "16. The expression "cause of action" has not been defined in the Constitution. However, the classic definition of "cause of action" given by Lord Brett in Cooke vs. Gill (1873) LR 8 CP 107 that "cause of action means every fact which it would be necessary for the plaintiff to prove, if traversed, in order to support his right to the judgment of the court", has been accepted by this Court in a couple of decisions. It is axiomatic that without a cause, there cannot be any action. However, in the context of a writ petition, what would constitute such "cause of action" is the material facts which are imperative f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts relied upon by the appellant. Indisputably, the appellant reported sickness on account of various ailments including difficulty in breathing. He was referred to hospital. Consequently, he was signed off for further medical treatment. Finally, the respondent permanently declared the appellant unfit for sea service due to dilated cardiomyopathy (heart muscles disease). As a result, the Shipping Department of the Government of India issued an order on 12-4-2011 cancelling the registration of the appellant as a seaman. A copy of the letter was sent to the appellant at his native place in Bihar where he was staying after he was found medically unfit. It further appears that the appellant sent a representation from his home in the State of Bihar to the respondent claiming disability compensation. The said representation was replied by the respondent, which was addressed to him on his home address in Gaya, Bihar rejecting his claim for disability compensation. It is further evident that when the appellant was signed off and declared medically unfit, he returned back to his home in the District of Gaya, Bihar and, thereafter, he made all claims and filed representation from his home add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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