Facts
In 2015, the Petitioner was sanctioned financial assistance of Rs. 10,00,00,000 for an integrated cold-chain project located in Uttarakhand under a government scheme
Source reference: para 2On 08.11.2019, the Respondent declined to release the third installment of the grant-in-aid
Source reference: para 2The Petitioner challenged this in a previous writ petition (W.P. (C) 454/2020), which the Delhi High Court disposed of on 06.03.2025, directing the Respondent to grant a hearing to the Petitioner
Source reference: para 3Following the hearing held in Delhi, the Respondent issued a communication dated 04.12.2025, treating the Petitioner’s case as ‘closed’
Source reference: para 1, 5The Petitioner filed the present writ petition to set aside this communication.
Source reference: no citationThe Court questioned the maintainability of the petition regarding territorial jurisdiction since the project is situated in Uttarakhand
Source reference: para 4Issues
1. Whether the Delhi High Court must entertain a writ petition solely because a small part of the cause of action (issuance of an order or conducting a hearing) arose within its jurisdiction
Source reference: para 7-82. Whether the doctrine of forum conveniens permits the Court to refuse the exercise of its discretionary jurisdiction when the material part of the cause of action lies elsewhere
Source reference: para 8, 14Law Applied
The Court primarily relied on the Supreme Court decision in Kusum Ingots & Alloys Ltd. v. Union of India, which clarified that 'cause of action' comprises every fact necessary for the plaintiff to prove to support their prayer
Source reference: para 6It established that even if a small part of the cause of action arises within a High Court's jurisdiction, the Court may refuse to exercise discretionary jurisdiction under Article 226 by invoking the doctrine of forum conveniens
Source reference: para 8The Court also applied the principle from Indure Pvt. Ltd. v. Government of NCT of Delhi, holding that the situs of the parties or the location where an order is passed is not the sole determinative factor for compelling a Court to entertain a petition
Source reference: para 12, 14Reasoning
The Petitioner argued that jurisdiction was proper because the impugned order was passed in Delhi and the previous litigation occurred there
Source reference: para 5-6While the Court admitted that a fraction of the cause of action arose in Delhi due to the Respondent's office location and the passing of the order, it determined that the "essential, material, and integral" part of the action arose in Uttarakhand
Source reference: para 7, 13The Court reasoned that the underlying dispute involves verifying whether the Petitioner complied with the terms and conditions of a project physically situated in Uttarakhand
Source reference: para 10, 13Relying on Kusum Ingots, the Court noted that the mere occurrence of correspondence or hearings in Delhi does not outweigh the fact that the project’s performance and subject matter are outside its territorial limits
Source reference: para 11, 14Therefore, the Court found it appropriate to invoke the doctrine of forum conveniens to decline jurisdiction
Source reference: para 15Holding
The Court declined to entertain the petition on the grounds of forum conveniens
It disposed of the petition while granting liberty to the Petitioner to approach the jurisdictional High Court (Uttarakhand)
Source reference: para 16The Court clarified that it expressed no opinion on the merits of the case
Source reference: para 17Original Court PDF
Aveena Milk ProductsvsUnion Of India
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