Facts
The Petitioner, SAIL, challenged an order dated 06.05.2024 passed by the Revisionary Authority (Union of India) under Section 30 of the MMDR Act and Rule 36 of the Mineral Concession Rules, 2016.
Source reference: para. 2The dispute originated from a demand notice issued by the State of Odisha on 25.01.2023 regarding a shortage of limestone at the Purnapuri Quarry situated in Odisha.
Source reference: para. 3The Revisionary Authority, located in New Delhi, rejected the Petitioner's revision on the grounds of maintainability under Section 23C(3) of the MMDR Act.
Source reference: para. 3The Petitioner approached the Delhi High Court seeking a writ of certiorari to quash the revisionary order.
Source reference: para. 1Issues
Whether the Delhi High Court should exercise its jurisdiction under Articles 226 and 227 of the Constitution based solely on the location of the Revisionary Authority in Delhi, or whether the doctrine of forum conveniens applies.
Source reference: para. 6-7Whether the challenge is maintainable in Delhi when the entire cause of action (mining lease, alleged shortage, and demand notice) arose in the State of Odisha.
Source reference: para. 8Law Applied
The Court primarily applied the doctrine of forum conveniens as established by the Full Bench of the Delhi High Court in M/s Sterling Agro Industries Ltd. v. Union of India.
Source reference: para. 7This precedent modified the earlier view in New India Assurance Co. Ltd. v. Union of India, clarifying that the mere situs of a Tribunal or Revisionary Authority does not compel a High Court to entertain a petition if the primary cause of action lies elsewhere.
Source reference: para. 7(a)-(c)The Court also referenced Alchemist Ltd. v. State Bank of Sikkim regarding the nature of the "cause of action".
Source reference: para. 7(b)The court acknowledged the distinction between Articles 226 and 227 as argued by the Petitioner through Vishnu Security Services v. Regional P.F. Commissioner.
Source reference: para. 4Reasoning
The Court noted that the mines are located in Odisha, the alleged limestone shortage occurred there, and the resulting demand notice was issued by the State of Odisha; therefore, the integral and material part of the cause of action arose in Odisha.
Source reference: para. 6, 8The Petitioner's sole ground for invoking Delhi's jurisdiction was the location of the Revisionary Authority in the capital.
Source reference: para. 6Applying the Sterling Agro ratio, the Court reasoned that while an appellate order constitutes a part of the cause of action, it is not a singular factor that mandates the High Court to decide the matter on merits.
Source reference: para. 7(c)The Court found that exercising discretionary jurisdiction would be inappropriate where the factual matrix and the primary lis are centered in another state.
Source reference: para. 9-10Holding
The Court dismissed the petition on the grounds of territorial jurisdiction and the principle of forum conveniens.
It held that the involvement of the Delhi High Court was not justified simply because the Revisionary Authority is situated in New Delhi.
Source reference: para. 9Liberty was granted to the Petitioner to approach the jurisdictional High Court (Odisha), with all rights and contentions left open.
Source reference: para. 11-12Original Court PDF
Steel Authority of India Limited (SAIL) v. Union of India & Ors. [W.P.(C) 13404/2024 and CM APPL. 56081/2024]
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