Holding

A High Court can entertain a writ under Article 226(2) only if a part of the cause of action arises within its territorial jurisdiction; the mere location of a company's head office does not confer jurisdiction.

Summary

Kalyan Banerjee, an employee of Eastern Coalfields Ltd., was appointed and later terminated in the Mugma area of Jharkhand. He filed a writ petition in the Calcutta High Court challenging his dismissal, arguing that the High Court had jurisdiction because the company's head office is located in West Bengal. The question before the Supreme Court was whether the location of a company's head or registered office confers territorial jurisdiction under Article 226(2) of the Constitution when the cause of action (termination) arose elsewhere. The Court held that "cause of action" for Article 226(2) must be understood as per CPC Section 20(c) and is determined by the place where the material facts giving rise to the relief occurred. Since the entire cause of action arose in Jharkhand, the Calcutta High Court lacked jurisdiction despite the head office's location. Consequently, the appeal was allowed and the writ petition dismissed for lack of jurisdiction.

Issues considered

Whether the presence of a company's head or registered office within a High Court's territorial limits confers jurisdiction to entertain a writ under Article 226(2).
How "cause of action" is to be interpreted for the purpose of determining territorial jurisdiction under Article 226(2).
Whether part of the cause of action arising in another jurisdiction can give the High Court jurisdiction.

Legislation cited

Code of Civil Procedures. Section 20(c)
Companies Act
Constitution of Indias. Article 226(1), s. Article 226(2)

Subjects

Article 226territorial jurisdictioncause of actionwrit petitiontermination of servicehead office jurisdictionhigh court jurisdictionCivil Procedure

Judgment

[2008] 3 S.C.R. 920

A EASTERN COALFIELDS LTD. & ORS.
'(
II.
KALYAN BANERJEE
(Civil Appeal No. 1736 of 2008)
MARCH 4, 2008
B
[S.B. SINHA AND V.S. SIRPURKAR, JJ.]
,,.
Constitution of India, 1950: Article 226(2) - Territorial
Jurisdiction -· Entire cause of action arising in Mugma Area in
c State of Jharkhand - Writ petition by employee challenging
his termination before Calcutta High Court - Maintainability
of - Held: Not maintainable - Company having Head Office
in the State of West Bengal would not by itself confer any
;urisdiction upon Calcutta High Court - Head office had
nothing to do with the order of punishment against employee.
D
Words and Phrases: Cause of action - Meaning of - In ,
the context of Article 226(2) of the Constitution of India, 1950.
The question which arose for consideration in this
appeal was whether the Calcutta High Court within whose
E territorial limits the Head Office of the Company was
situated, has territorial jurisdiction to entertain the writ
application of the employee challenging his termination
when the employee was appointed with the Company at
Mugma Area, in Jharkhand and also his services were
F terminated at that place. '...

Allowing the appeal, the Court r

HELD: 1.1 The jurisdiction to issue a writ of or in the
nature of mandamus is conferred upon the High Court
G under Article 226 of the Constitution of India. Article 226(2),
however, provides that if cause of action had arisen in
more than one court, any of the courts where part of cause
of action arises will have jurisdiction to entertain the writ
petition. (Para 6) [924-F, G]
H 920
EAStERN COALFIELDS LTD. & ORS. v. 921
KALYAN BANERJEE

't 1.2 'Cause of action', for the purpose of Article 226(2) A
of the Constitution of India, for all intent and purport, must
be assigned the same meaning as envisaged under
section 20(c) CPC. It means a bundle of facts which are
required to be proved. The entire bundle of facts pleaded,
however, need not constitute a cause of action as what is B
necessary to be proved is material facts whereupon a writ
·,
"" petition can be allowed. (Para 7) [924-G, H; 925-A]
1.3 In view of the decision of the Division Bench of
the Calcutta High Court that the entire cause of action
arose in Mugma Area within the State of Jharkhand, it is c
opined that only because the Head Office of the appellant-
company was situated in the State of West Bengal, the
same by itself will not confer any jurisdiction upon the
Calcutta High Court, particularly when the Head Office had
nothing to do with the order of punishment passed D
against the respondent. (Para 11) [928-C, D]
Kusum Ingots & Alloys Ltd. v. Union of India and Another
(2004) 6 SCC 254; Nasiruddin v. State Transport Appellate
Tribunal AIR 1976 SC 331; UP Rashtriya Chini Mill Adhikari
Parishad, Lucknow vs. State of UP and others (1995) 4 SCC E
738; Mosaraf Hossain Khan v. Bhagheeratha Engg. Ltd. and
Others (2006) 3 SCC 658; Om Prakash Srivastava v Union of
India and Anr (2006) 6 SCC 207; Uttaranchal Forest Rangers'
':: Assn. (Direct Recruit) and Others v. State of UP and Others
(2006) 10 sec 346 - referred to F

CIVILAPPELLATE JURISDICTION: Civil Appeal No. 1736
of 2008.
From the Judgment and final Order dated 25/11 /2005 of
the High Court of Calcutta at Calcutta in R.V.W. No. 1709/2003 G
in W.P. No. 19934 (W) /1999.
-,, Anip Sachthey for the Appellants.
The Judgment of the Court.was delivered by
H
922 SUPREME COURT REPORTS [2008) 3 S.C.R.

A· S.B. SINHA, J. 1. Leave granted. f

2. Respondent was an employee of Eastern Coal Fields
Limited, Appellant No. 1 herein in the Mug ma Area, in the district
of Dhanbad, Jharkhand. The General Manager of the area,
whose office is also situated at Mugma was his appointing and
B disciplinary authority. The services of the respondent were
terminated at Mugma. He filed a writ application before the
Calcutta High Court. As he was serving in the Mug ma Area and
the office of the General Manager was situated at Mug ma which
is in the State of Jharkhand, a preliminary objection was raised
C in regard to the jurisdiction of the Calcutta High Court. In support
of the said objection, reliance was placed upon a decision of a
learned Single Judge in N.N. Singh v. Coal India Limitecl [C.O.
No. 5869 (W) of 1994].
3. The learned Single Judge, however, disagreed with the
D said view and referred the matter to the Division Bench. The f
Division Bench by a judgment and order dated 26.03.2003
opined that the Calcutta High Court had no territorial jurisdiction
to entertain the said writ petition stating:
E "... In this case the Division Bench relying on an observation
of the learned Single Judge held that since the registered
office of Eastern Coalfields Ltd. is situated at Sanctoria,
Burdwan within the territorial jurisdiction of this Hon'ble
Court which is a necessary party and also the order of
F approval for dismissal was ultimately obtained from the
Director, Personnel of the Eastern Coalfields Ltd., whose
office is at the said registered office, the writ petiton can
be maintained before the Calcutta High Court. Therefore,
this case was essentially decided on fads, but there is no
such averments in the petition that the order of termination,
G
passed by the General Manager, Badjna Colliery, Mugma
Area, DI~ ~rbad had obtained any prior approval from the
t1ead office at Calcutta. Therefore. this decision of the
Division Bench of this Court does not held the writ
petitioner/ respondent in this case.
. EASTERN COALFIELDS LTD. & ORS. v. 923
KALYAN BANERJEE [S.B. SINHA, J.]

As per the three Apex Court decisions, referred to above, A
cause of action is decisive of the matter for acquiring
territorial jurisdiction to decide the matter. Simply because
the head office of the company is at Calcutta is not decisive
of the matter as held in the case of Oil & Natural Gas
Commission Vs. Utpal Kumar Basu (supra) because that B
would not give a cause of action to the party. Cause of
action is a bundle of facts which decides the territorial
jurisdiction of the Court, if any of the cause of action has
arisen to the party within the jurisdiction of Calcutta High
Court then the High Court at Calcutta will have jurisdiction c
to decide the matter. Simply because a head office of the
company is within the territorial limits of the Calcutta High
- Court, that will not give jurisdiction to the Calcutta High
Court unless cause of action arises within the territorial
jurisdiction of Calcutta High Court."
D
4. A review application was filed thereagainst. By reason
of the impugned judgment dated 25.11.2005, the said review
application has been allowed holding that the Division Bench
had not taken into consideration two other decisions of the
Division Benches of the said Court, viz., Ram Brich Muchi v. E
Coal India Limited [A.P.O.T. No. 343 of 2002] and Eastern Coal
Fields Ltd. v. Khagen Bouri & Ors. [2002 (1) C .L. R. 884]. It was
furthermore opined:

"As provided in the Companies Act, a company is a body
corporate and its registered office should be deemed to F
be its site for the purpose of all litigations. The law is
equally settled that an employee challenging an order of
dismissal cannot get an effective order unless the employer
is made party to the litigation and as such, in this case, the
Eastern Coal Fields Limited having its registered office in G
the district of Burdwan is a necessary party and if the
Court proposed to give relief to the writ petitioner, specific
direction of reinstatement must be given to the employer
to be carried out through its appropriate officers. As
provided in Article 226(1) of the constitution of india, even H

•
924 SUPREME COURT REPORTS [2008] 3 S.C.R.

A if the cause of action arises outside the territorial limit of 1
High Court, such High Court can entertain a writ application
if the person sought to be bound by the order of the Court
is stationed within the territorial limit. Article 226(2) is an
additional provision subsequently incorporated by way of
B amendment enabling a High Court to issue writ even in
cases where the respondents are functioning beyond its
territorial limit if the cause of action ~as arisen fully or in
part within its territorial limit.

Once it is held that Article 226(1) is clearly applicable,
C there is no necessity of invoking Article 226(2) of the
Constitution of India. From the order sought to be
reviewed, we find that Division Bench confined its attention
to the cause of action of the present writ application but
totally ignored the fact that the employer, the Government
D company, has its registered office within the district of
Burdwan and consequently the question whether cause of
action had really arisen within the territorial limit of this
Court was immaterial."

5. Mr. Anip Sachthey, learned counsel appearing on behalf
E of the appellant, submitted that it is not a case where sanction
of the corporate office or head office was required to be taken.
The entire cause of action having arisen within the jurisdiction
of the Jharkhand High Court, the Calcutta High Court could not
have exercised any jurisdiction in the matter.
F
6. The jurisdiction to issue a writ of or in the nature of
mandamus is conferred upon the High Court under Article 226
of the Constitution of India. Article 226(2), however, provides
that if cause of action had arisen in more than one court, any of
G the courts where part of cause of action arises will have
jurisdiction to entertain the writ petition.
7. 'Cause of action', for the purpose of Article 226(2) of
the Constitution of India, for all intent and purport, must be
assigned the same meaning as envisaged under Section 20(c)
H of the Code of Civil Procedure. It means a bundle of facts which
EASTERN COALFIELDS LTD. & ORS. v. 925
KALYAN BANERJEE [S.B. SINHA, J.]
)'-
are required to be proved. The entire bundle of facts pleaded, A
>
however, need not constitute a cause of action as what is
necessary to be proved is material facts whereupon a writ
petition can be allowed.

The question to some extent was considered by a Three-
Judge Bench of this Court in Kusum Ingots & Alloys Ltd. v. B
·.~
Union of India and Another [(2004) 6 SCC 254] stating:
"18. The facts pleaded in the writ petition must have a
nexus on the basis whereof a prayer can be granted. Those
facts which have nothing to do with the prayer made therein c
cannot be said to give rise to a cause of action which
would confer jurisdiction on the Court."

As regards the question as to whether situs of office of the
appellant would be relevant, this Court noticed decisions of this
Court in Nasiruddin v. State Transport Appellate Tribunal [AIR D
1976 SC 331] and UP Rashtriya Chini Mill Adhikari Parishad,
Lucknow vs. State of UP and others ((1995) 4 SCC 738] to
hold:
"26. The view taken by this Court in U.P. Rashtriya Chini
E
Mill Adhikari Parishad that the situs of issue of an order or
notification by the Governmen t would come within the
meaning of the expression "cases arising" in clause 14 of
the (Amalgamation) Order is not a correct view of law for
.,J
the reason hereafter stated and to that extent the said
decision is overruled. In fact, a legislation, it is trite, is not F
~

confined to a statute enacted by Parliament or the
legislature of a State, which would include delegated
legislation and subordinate legislation or an executive
order made by the Union of India, State or any other
statutory authority. In a case where the field is not covered G
by any statutory rule, executive instructions issued in this
behalf shall also come within the purview thereof. Situs of
office of Parliament, legislature of a State or authorities
empowered to make subordinate legislation would not by
itself constitute any cause of action or cases arising. In H
926 SUPREME COURT REPORTS [2008) 3 S.C.R.

A other words, framing of a statute, statutory rule or issue of '(
...
an executive order or instruction would not confer
jurisdiction upon a court only because of the situs of the
office of the maker thereof.
27. When an order, however, is passed by a court or tribunal
B or an executive authority whether under provisions of a
statute or otherwise, a part of cause of action arises at t

that place. Even in a given case, when the original authority
is constituted at one place and the appellate authority is
constituted at another, a writ petition would be maintainable
c at both the places. In other words, as order of the appellate
authority constitutes a part of cause of action, a writ petition
would be maintainable in the High Court within whose
jurisdiction it is situate having regard to the fact that the
order of the appellate authority is also required to be set
D aside and as the order of the original authority merges
with that of the appellate authority."
8. Kusum Ingots & Alloys Ltd. (supra) has been followed
by this Court in Mosaraf Hossain Khan v. Bhagheeratha Engg.
Ltd. and Others [(2006) 3 SCC 658) stating:
E
"26. In Kusum Ingots & Alloys Ltd. v. Union of India 14 a
three-Judge Bench of this Court clearly held that with a
view to determine the jurisdiction of one High Court vis-
vis the other the facts pleaded in the writ petition must ....
F have a nexus on the basis whereof a prayer can be made
and the facts which have nothing to do therewith cannot r
give rise to a cause of action to invoke the jurisdiction of
a court. In that case it was clearly held that only because
the High Court within whose jurisdiction a legislation is
passed, it would not have the sole territorial jurisdiction
G
but all the High Courts where cause of action arises, will
have jurisdiction ... "
(
9. In Om Prakash Srivastava v. Union of India and Another
[(2006) 6 SCC 207], this Court held:
H
EASTERN COALFIELDS LTD. & ORS. v. 927
KALYAN BANERJEE [S.B. SINHA, J.]

"12. The expression "cause of action" has acquired a A
judicially settled meaning. In the restricted sense "cause
of action" means the circumstances forming the infraction
of the right or the immediate occasion for the reaction. In
the wider sense, it means the necessary conditions for
the maintenance of the suit, including not only the infraction B
of the right, but also the infraction coupled with the right
itself. Compendiously, as noted above, the expression
means every fact, which it would be necessary for the
plaintiff to prove, if traversed, in order to support his right
to the judgment of the court. Every fact, which is necessary c
to be proved, as distinguished from every piece of
evidence, which is necessary to prove each fact, comprises
in "cause of action". (See Rajasthan High Court Advocates'
Assn. v. Union of India)"
10. In Uttaranchal Forest Rangers' Assn. (Direct Recuirl) D
and Others v. State of UP and Others [(2006) 10 SCC 346],
this Court held:
"44. The second impugned order dated 12-4-2004 is
further vitiated for the following reasons:
E
( a ) Forum .-The seniority list under challenge in the
second writ petition was the seniority list of the Uttaranchal
State Government of 2002 and such challenge could not
have been made before the Lucknow Bench of the
Allahabad High Court. F
( b ) Parties .-None of the direct recruits who would be
directly affected by the order were made parties to the
writ petition. Therefore the High Court did not have the
benefit of competing arguments in the matter. Even though,
the Principal Secretary of the State of Uttaranchal was G
made a party, the said party was never served. The only
respondent which was heard was the State of U.P. which
had no stake in the matter at all since all of the writ
petitioners before the Lucknow Bench of the Allahabad
High Court were employees of the State of Uttaranchal on H
928 SUPREME COURT REPORTS [2008] 3 S.C.R.

A the relevant date. It is, therefore, evident that the relevant 1

material was not placed before the Allahabad High Court
for the purpose of deciding the writ petition. Accordingly,
the permission had to be taken from this Court by the
present appellants to prefer the SLPs."
B These directions are authorities for the proposition that
only that court will have jurisdiction within which, the entire cause ~·
of action had arisen. In this case, no part of cause of action
arose within the jurisdiction of the Calcutta High Court.

c 11. In view of the decision of the Division Bench of the
Calcutta High Court that the entire cause of action arose in
MugmaArea within the State of Jharkhand, we are of the opinion
that only because the Head Office of the appellant - company
was situated in the State of West Bengal, the same by itself will
not confer any jurisdiction upon the Calcutta High Court,
0
particularly when the Head Office had nothing to do with the f
order of punishment passed against the respondent.
12. The appeal is allowed accordingly. No costs.

E N.J. Appeal allowed.

L