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2024 (6) TMI 196

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..... ss to state that the expression cause of action for exercising powers under Article 226 (2) of the Constitution of India is to be assigned the same meaning as assigned to such an expression under Section 20 (c) of the CPC. Further, merely because the seat or the main head office of the respondent is located in Delhi would not be sufficient to confer jurisdiction upon this Court. Reference in this regard can be invited to a decision by the Supreme Court in the case of UNION OF INDIA (UOI) AND ORS. VERSUS R. THIYAGARAJAN [ 2020 (4) TMI 915 - SUPREME COURT] wherein it is reiterated that unlike the Supreme Court, which can exercise jurisdiction over the entire country, the jurisdiction of the High Courts is limited to the territorial jurisdicti .....

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..... l jurisdiction. - HON'BLE MR. JUSTICE DHARMESH SHARMA For the Petitioner Through : Mr. Rakesh Kumar and Ms. Deepali Aggarwal, Advs. For the Respondent Through: Ms. Rukmini Babde, CGSC with Mr. Hussain Taqvi, GP, Ms. Soumya Priyadarshinee, Mr. Amlaan Kumar and Mr. Amit Srivastav, Advs. JUDGMENT 1. The petitioner is invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, seeking directions for issuance of a writ of Mandamus or any other appropriate writ and the following reliefs are being sought: a) Issue appropriate writ, order or direction directing Respondent no. 1 to appoint an investigator and complete the investigation under relevant provisions of law in a time-bound manner to take app .....

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..... l justice. (b) The Central Government is directed to adopt the procedure prescribed under Section 213 (b) of the Companies Act, 2013 and the Central Government may get the affairs of the Respondent No. 1 Company herein, namely, M/s. Vikram Structures Pvt. Ltd. (presently under Liquidation process under the I B Code, 2016) and those of the related parties be investigated by appointing Inspector(s) to carry out the investigation by following the due procedure. (c) Liquidator of the Respondent No. 1 Company is directed to cooperate with the Petitioners in handing over the requisite material documents of R-1 Company. (d) The Registry of this Tribunal is also directed to forward a copy of this Order forthwith to the Secretary and Joint Secretary .....

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..... misappropriation of funds, defrauding of the investors and siphoning of the funds on the part of the VSPL and its Directors, as alleged, has arisen in the State of Karnataka. 7. Learned counsel for the petitioner has vehemently urged that the seat or the main head office of the respondent is located in Delhi and that alone would constitute a sufficient cause to confer territorial jurisdiction upon this Court. 8. Avoiding a long academic discussion, a plain reading of Clause (2) to Article 226 1 of the Constitution of India makes it clear that the High Court could issue a writ when the person or the authority against whom the writ is issued is located outside its territorial jurisdiction, provided the cause of action wholly or partially ari .....

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..... exercise its discretionary jurisdiction by invoking the Doctrine of Forum Conveniens. 11. At this juncture, it would be relevant to invite reference to a decision by the Supreme Court in the case of U.P. Rashtriya Chini Mill Adhikari Parisahd, Lucknow v. State of U.P. (1995) 4 SCC 738 wherein it was held that the situs of office of the Parliament, Legislature of a State or Authorities empowered to make subordinate legislation, would not by itself, constitute any cause of action or cases arising . Likewise, mere fact that the respondent-Ministry of Corporate Affairs can appoint or entrust the investigation to the SFIO from Delhi would not by itself be sufficient to invoke the territorial jurisdiction of this Court. 12. Accordingly, the pres .....

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..... rd, 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 application is not so disposed of, the interim order shall, on the expiry of that period, or, as the case may be, the expiry of the said next day, stand vacated.] [(4) The power conferred o .....

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