Delhi High Court

Situs of Head Office or Arbitration Seat Does Not Confer Writ Jurisdiction Absent Integral Cause of Action

M/S Neometrix Defence Ltd vs Assistant Chief Of Air Staff (Procurement) & Ors.

Delhi High CourtJUDGMENT: May 04, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was awarded a "Development cum Supply Order" by Respondent No. 2 (based in Nagpur, Maharashtra) on 01.05.2023 for the supply of 45 KVA Ground Power Units (GPUs)

Source reference: para. 2

Performance including manufacturing and pre-dispatch inspections took place in Pune and Nagpur, Maharashtra

Source reference: para. 2, 10

Following delivery delays, Respondent No. 2 issued a termination order and directed the forfeiture of the petitioner’s bank guarantee on 13.04.2026 from Nagpur

Source reference: para. 2

The petitioner challenged this termination in the Delhi High Court, citing that their registered office is in Delhi, some respondents are headquartered in Delhi, and the contract's arbitration clause fixed the seat in Delhi

Source reference: para. 5, 11, 12
02

Issues

1. Whether the mere presence of a respondent's head office or the petitioner’s registered office in Delhi is sufficient to vest territorial jurisdiction in the Delhi High Court under Article 226

Source reference: para. 6, 8

2. Whether a contractual "seat of arbitration" clause in Delhi can bind a Constitutional Court’s discretionary writ jurisdiction

Source reference: para. 12

3. Whether the court should exercise jurisdiction based on the doctrine of forum conveniens when the material cause of action arose outside its territorial limits

Source reference: para. 13-14
03

Law Applied

The Court relied on the principle that the situs of a head office or registered office does not, by itself, determine territorial jurisdiction if the "material, essential, and integral" facts occurred elsewhere, as established in The Indure Pvt. Ltd. v. GNCTD

Source reference: para. 6-7

Kusum Ingots & Alloys Ltd. v. Union of India, which permits a court to refuse jurisdiction even if a small part of the cause of action arises within its limits

Source reference: para. 13-14

Per Durgapur Freight Terminal Pvt. Ltd. v. Union of India and Maharashtra Chess Association v. Union of India, private arbitration agreements or jurisdiction clauses cannot oust or mandate the discretionary extraordinary jurisdiction of a High Court under Article 226

Source reference: para. 12
04

Reasoning

The Court observed that the "substance of the matter" was entirely connected to Maharashtra: the contract was issued from Nagpur, inspections occurred in Pune, and the impugned termination order originated from Nagpur

Source reference: para. 10

The Court reasoned that the presence of government authorities in the national capital is an "unchanging constant" and "static facet" that should not be treated as a "dominant fact" to attract jurisdiction

Source reference: para. 8-9

It rejected the argument that an arbitration seat in Delhi suffices for a writ petition, noting that a Constitutional Court cannot be "moulded to suit the fancies of parties expressed in their contract"

Source reference: para. 12

Applying the doctrine of forum conveniens, the Court found that the legal injury and foundational facts were tied to the jurisdictional High Court in Maharashtra, rendering the Delhi connection merely "incidental and cosmetic"

Source reference: para. 11, 14
05

Holding

The Court held that it lacked the requisite territorial jurisdiction to entertain the petition as no material part of the cause of action arose in Delhi

The petition was dismissed with liberty granted to the petitioner to approach the appropriate jurisdictional High Court in Maharashtra. All pending applications were disposed of accordingly

Source reference: para. 15-16
Delhi High Court

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M/S Neometrix Defence LtdvsAssistant Chief Of Air Staff (Procurement) & Ors.

Delhi High Court · May 04, 2026

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