JUDGEMENT
VlKRAMAJIT SEN, J. -
(1.) The Petitioner's plans to construct a Hotel
on its private land situated opposite the
International Airport in St. Thomas Mount-cum-Pailavaram Cantonment, Chennai has
received a set-back. Vide orders dated
15.6.1984, the GOC-in-C, Southern
Command had imposed Floor Space Index
(FSI) restrictions which may render the Hotel
project non-viable. The contention of the
Petitioner is that the power to determine the
FSI is reposed in the Cantonment Board and
not the GOC-in-C, Southern Command, and
further that the FSI fixed by the said Officer
is insufficient for the proposed five-star hotel
and in variance with what has been allowed
to other similarly placed Companies. The
next contention of the Petitioner is that the
FSI has already been relaxed for two other
companies but declined for the Petitioner.
The Petitioner had initiated appropriate legal
proceedings in the Madras High Court in the
course of which directions were issued to the
Central Government to dispose of Petitioner's
application expeditiously. The application has
been rejected. The Petitioner's asseveration
is that there is no deficiency in the availability
of either water or electricity supply and,
therefore, more favourable FSI, as allowed
to other persons, should have been granted
to the Petitioner also.
(2.) The Petition has been resisted by the
Respondents firstly on the grounds of lack of
territorial jurisdiction, and on merits also. So
far as the quertion of territorial jurisdiction is
concerned this Court had the occasion to
reflect upon the question of exercise of the
territorial jurisdiction of High Courts in Indo
Gulf Industries Ltd. Vs. U.P. State
Industries Development Corpn., 2003
(III) AD (D) 254 : 2003 104 DLT 529. The
Opinion of the Supreme Court in O.N.G.C.
Vs. Utpal Kumar Basi, JT 1994 (5) SC 1,
Bhagwandas Goverdhandas Kedia Vs.
Girdharlal Parshottamadas and Co., AIR
1966 SC 543 and ABC Laminart Vs. A.P.
Agencies, AIR 1989 SC 1239 :1989 (2) SCC
163 had been applied. The view of the Division
Bench in Sector Twenty One Owners
Welfare Association Vs. Air Force Naval
Housing Board, 65 (1997) DLT 81 (DB)
had also been considered. The following
passage from ABC Laminart Vs. A.P
Agencies, AIR 1989 SC 1239 = 1989 (2
SCC 163 is extremely instructive -
15. In the matter of a contract there
may arise causes of action of various
kinds. In a suit for damages for breach
of contract the cause of action consists
of the making of the contract, and of
its breach, so that the suit may be filed
either at the place where the contract
was made or at the place where it
should have been performed and the
breach occurred. The making of the
contract is part of the cause of action.
A suit on a contract, therefore, can be
filed at the place where it was made.
The determination of the place where
the contract was made is part of the
law of contract But making of an offer
on a particular place does not form
cause of action in a suit for damages for
breach of contract. Ordinarily,
acceptance of an offer and its intimation
result in a contract and hence a suit
can be filed in a court within whose
jurisdiction the acceptance was
communicated. The performance of a
contract Is part of cause of action and a
suit in respect of the breach can always
be filed at the place where the contract
should have (been) performed or its
performance completed. If the contract
is to be performed at the place where
it is made, the suit on the contract is to
be filed there and nowhere else. In
suits for agency actions the cause of
action arises at the place where the
contract of agency was made or the
place where actions are to be rendered
and payment is to be made by the
agent. Part of cause of action arises
where money is expressly or impliedly
payable under a contract. In cases of
repudiation of a contract, the place
where repudiation is received is the
place where the suit would lie. If a
contract is pleaded as part of the cause
of action giving jurisdiction to the Court
where the suit is filed and that contract
is found to be invalid, such part of
cause of the action disappears. The
above are some of the connecting
factors.
No doubt these legal reflections were
in the context of Section 20 of the
Code of Civil Procedure, 1908 but that
should make no appreciable difference.
A reading of these decisions will show
that even in respect of writ petitions
the place where the cause of action
arises in the principal and most
prominent and relevant manner would
determine which High Court should
exercise territorial jurisdiction.
(3.) This question has been considered in detail
by the Hon'ble Supreme Court in Union of
India Vs. Adani Exports Ltd., AIR 2002 SC
126. In its opinion, "each and every fact
pleaded in the application does not ipso facto
lead to the conclusion that those facts give
rise to a cause of action within the Court's
territorial jurisdiction unless those facts pleaded
are such which have a nexus or relevance
with the lis that is involved in the case. Facts
which have no bearing with the lis or the
dispute involved in the case do not give rise
to a cause of action so as to confer territorial
jurisdiction on the Court concerned".;
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