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. 2Performance including manufacturing and pre-dispatch inspections took place in Pune and Nagpur, Maharashtra
Source reference: para. 2, 10Following 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. 2The 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, 12Issues
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, 82. Whether a contractual "seat of arbitration" clause in Delhi can bind a Constitutional Court’s discretionary writ jurisdiction
Source reference: para. 123. 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. 13-14Law 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. 6-7Kusum 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. 13-14Per 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. 12Reasoning
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. 10The 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. 8-9It 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. 12Applying 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, 14Holding
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. 15-16Original Court PDF
M/S Neometrix Defence LtdvsAssistant Chief Of Air Staff (Procurement) & Ors.
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