Holding

A High Court can entertain a writ under Article 227 only if the order of the subordinate court was passed within its territorial jurisdiction or if a cause of action arose therein; the Kerala High Court lacked such jurisdiction in this case.

Summary

The appellant supplied stone chips for a West Bengal construction project and was paid by post‑dated cheques issued by the respondent from its registered office in Kerala. The cheques were deposited in a West Bengal bank, bounced, and a criminal complaint under Section 138 of the Negotiable Instruments Act was filed before the Chief Judicial Magistrate, Birbhum. The respondent filed a writ petition in the Kerala High Court claiming that part of the cause of action arose in Kerala because the cheques were issued there, and obtained an interim stay of the criminal proceedings. The Supreme Court examined whether the Kerala High Court had territorial jurisdiction to entertain the writ under Article 227 (and 226) of the Constitution. It held that only the High Court within whose jurisdiction the order of the subordinate court was passed can entertain such a writ unless a cause of action arose within its territory, which was not the case here. Consequently, the Kerala High Court lacked jurisdiction, the interim stay was vacated, and the appeal was allowed.

Issues considered

The Kerala High Court's territorial jurisdiction to entertain a writ petition under Article 227/226 challenging the order of a subordinate court in West Bengal.
Whether any part of the cause of action for the offence under Section 138 NI Act arose in Kerala.

Legislation cited

Code of Criminal Procedures. 177, s. 178, s. 179, s. 180, s. 181, s. 188
Constitution of Indias. 226, s. 227
Negotiable Instruments Act, 1881s. 138

Subjects

Territorial jurisdictionArticle 227Article 226Negotiable Instruments ActSection 138Writ petitionHigh Court jurisdictionCause of actionCriminal complaintSubordinate court order

Judgment

~'

~

.._,. MUSARAF HOSSAIN KHAN A-
11.

B!-IAGHEERATHA ENGG. LTD AND ORS.

FEBRUARY 24, 2006
B
l [S.B. SINHA AND P.K. BALASUBRAMANYAN, JJ.]

Constitution of India, 1950-Article 227-Territorial jurisdiction against
).
order of sub-ordinate court-Held: Only that High Court within whose
jurisdiction order of sub-ordinate court was passed has jurisdiction to
entertain application under Article 227 of Constitution of India unless it is
c
established that an earlier cause of action arose within jurisdiction thereof

Negotiable Instruments Act 1881-Section 138-Constitution of India,
1950-Articles 226 and 227-Cheque deposited in a back in State of West
Bengal, and on their bouncing, criminal complaint filed in that State itself- D
However, against order of cognisance and issuance of summons, drawer of
~
cheque filing writ petition in State of Kera/a, claiming that as cheques were
).. issued from their registered office in that State, a part of cause of action had .
arisen there-Grant of interim relief by High Court-Jurisdiction for-Held:
Kera/a High Court had no jurisdiction to entertain the writ petition as
ingredients of offence under Section 138 of the Act constituting the cause of E
action did not arise within its jurisdiction; sending of cheques from State of
Kera/a or drawer of cheques having an office there did not form an integral
part of such cause of action.

Appellant supplied stone chips to respondent for construction work in State
F
of West Bengal. They deposited cheques for payment issued by latter in a bank
1 in Birbhum at Suri in State of West Bengal. On bouncing of these cheques, they
filed a criminal complaint under Section 138 of Negotiable Instruments Act 1881
before Chief Judicial Magistrate at the same place. Cognisance of complaint was
taken and summons issued to respondent were received by them at Kolaghat, ·
Midnapore, West Bengal In response, respondents tiled a writ petition in Kerala G
High Court. Interim relief of stay of further proceedings pursuant to the above
complaint was granted by the High Court. Hence the present appeal.
.. ~
The question before the Court was whether the Kerala High Court had the

595 H
596 SUPREME COURT REPORTS [2006] 2 S.C.R.

A jurisdiction in the matter. Respondent contended the cheques were issued from
their registered office in State of Kerala, so a part of the cause of action had t
arisen therein, therefore High Court there had the jurisdiction.

Allowing the appeal, the Court

B HELD: I. Only such High Court within whose jurisdiction the order of
sub-ordinate court has been passed would have the jurisdiction to entertain an
application under Article 227 of the Constitution of India unless it is established
that the earlier cause of action arose within the jurisdiction thereof. (608-G)

2.1. Kerala High Court had no jurisdiction to entertain the writ petition as
C no part of the cause of action arose within its jurisdiction. [612-E)

Union ofIndia and Ors. v. Adani Exports Ltd and Anr., (2002) I SCC 567,
Kusum Ingots and Alloys Ltd v. Union of India and Anr., [2004) 6 SCC 254 and
Mayank (HK.) Ltd and Ors. v. Owners and Parties Vessel M V. Fortune Express
D and Ors., (2006) 2 Scale 30, referred to.

Nakul Dea Singh v. Deputy Commandant, (1999) 3 KLT 629, approved.

2.2. The averments made in the writ petition filed by the respondent even if
given face value and taken to be correct in their entirety would not confer any
E jurisdiction upon the Kerala High Court. The agreement was entered into within
the jurisdiction of the Calcutta High Court The project for which the supply of
stone chips and transportation was being carried out was also within the State of
West Bengal Payments were obviously required to be made within the jurisdiction
of the said court where either the contract had been entered into or where payment
was to be made. (611-C-E)
F
3.1. For the purpose of proving the ingredients of the offence under Section
138 of the Act, the complainant was required to prove facts constituting the cause
of action therefor none which arose within the jurisdiction of the Kerala High
Court (612-D-E]

G Goa Plast (P} Ltd v. Chico Ursula D 'Souza, (2004] 2 sec 235, Monaben
Ketabhai Shah and Anr. v. State ofGujwat and Ors., [2004) 7 SCC 15 and Prem
Chand Vijay Kumar v. Yashpal Singh and Anr., (2005] 4 SCC 417, referred to.

Augustine v. Omprakash Nanakram, (2001) 2 KLT 638, approved.
-
H 3.2. A bare perusal of the complaint petition would clearly go to show that
MUSARAF HOSSAIN KHAN v. BHAGHEERA THA ENGG. LTD 597
according to the complaint the entire cause of action arose within the jurisdiction A
of the district courts of Birbhum and in that view of the matter it is that court
which will have jurisdiction to take cognisance of the offence. It is not contended
that the complainant had suppressed material fact and which if not disclosed would
have demonstrated that the offence was committed outside the jurisdiction of the
said court. Even if Section 178 of the Code of Criminal Procedure Code is B
attracted, the court of the Chief Judicial Magistrate, Birbhum will alone have
jurisdiction in the matter. (609-D-E)

3.3. Sending of cheques from Emakulam or the respondents having an office
at that place did not form an integral part of the cause of action for which the
complaint petition was filed by the appellant and cognisance of the offence under C
Section 138 of the Negotiable Instrument Act, 1881 was taken by the Chief
Judicial Magistrate at Suri. (609-F-G)

State of Rajasthan and Ors v. Swaika Properties and Anr., (1985) 3 SCC
217, Aligarh Muslim University and Anr. v. Vinay Engineering Enterprises Pvt.
Ltd andAnr., (1994] 4 SCC 710; Oil and Natural Gas Commissionv. Utpal Kumar D
Basu and Ors., (1994) 4 SCC 711 and Om Hemrajani v. State of UP. and Anr.,
__. (2005) l sec 617, referred to.
;..
4.1. Under Articles 226 and 21.7 of the Constitution High Courts should
not ordinarily interfere with an order taking cognisance passed by a competent
court oflaw except in a proper case. (608-F-GJ E
Surya Dev Rai v. Ram Chander Rai and Ors., [2003) 6 SCC 675, Rupa
Ashok Hurra v. Ashok Hurra, (2002) 4 SCC 388 and Ranjeet Singh v. Ravi
Prakash, (2004) 3 SCC 692, referred to.

4.2. In a criminal matter High Court may exercise its extra-ordinary writ F
jurisdiction but interference with an order of Magistrate taking cognisance under
Section 190 of the Code of Criminal Procedure will stand on somewhat different
footing as an order taking cognisance can be subject matter of revisional
jurisdiction as well as of an application invoking the inherent jurisdiction of the
High Court (606-A-B) G
Naresh Mirajkar and Ors. v. State of Maharashtra and Anr., AIR (1%7)
SC 1 and State of UP. and Ors. v. Surendra Kumar, [2005) 9SCC161, referred
to.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1269 of2006. H
598 SUPREME COURT REPORTS [2006] 2 S.C.R.
A From the Judgment and Interlocutory Order dated 25.•1.2005 of the
Kerala High Court in Writ Petition (C) No. 2666/2005.

Chanchal Kumar Ganguli for the Appellant.

Satish Vig, Ramesh Babu M.R. and K. Rajeev for the Respondent
B The Judgment of the Court was delivered by

S.B. SINHA, J. Leave granted.

The appellant herein filed a complaint petition in the court of Chief 4
C Judicial Magistrate, Birbhum at Suri being CC No. 339 of2004 alleging inter
al ia therein that several cheques of diverse sums issued by the respondent
herein had been dishonoured, and, thus, they committed an offence punishable
under Section 138 of the Negotiable Instrument Act, 1881 (hereinafter referred
to as "the Act').

D The appellant herein entered into a contract with the Respondent No.
I herein (Company) for supply of stone chips. The company used to hand
over post-dated cheques to the appellant towards the price of stone chips as
also transport, handling, postage and other charges. The Company had issued
six cheques of the following description in favour of the appellant:

E SI.No. Cheque No. Dated Amount

I. 455997 10.06.2004 Rs. 5,33,795

2. 455998 10.07.2004 Rs. 5,33,795

F 3. 455999 10.08.2004 Rs. 5,33,795

4. 455993 10.06.2004 Rs. 6,49,085

5. 455994 10.072004 Rs. 6,49 .085

G 6. 455995 10.082004 Rs. 6,49,085

Total: Rs. 35,48,640

The aforementioned cheques were deposited with "Mayurakhi Gramin
Bank" Suri branch but they were returned by the Banker stating "full cover
H not received". A demand notice was sent by the appellant demanding payment
MUSARAF HOSSAIN KHAN v.BHAGHEERA THA ENGG. LTD [SINHA, l] 599

of the said cheque to the respondent in September, 2004. Out of the A
aforementioned sum of Rs. 35,48,640/- a sum of Rs. 5,33,795/- was paid by
respondent No. 4 on or about 15.9.2004. The appellant alleged that a sum of
Rs. 30, 14,845/- is still due and owing to him from the respondents. The
respondents admit the claim of the appellant. They are said to have assured
him that the rest of the amount shall be paid, but the same has not been done. B

The appellant on the aforementioned allegations filed a complaint petition
• in the court of Chief Judicial Magistrate, Birbhum at Suri which was registered
as CC No. 339 of 2004. By an order dated I 0.11.2004 the Chief Judicial
Magistrate upon examining the appellant on oath took cognizance of the said
offence stating: C
" .....Hd. Considered. Cog. Is taken.

Examined the complainant Mosaraf Hossain on S/A.

A Prima facie case has been made out against the accused
persons u/s. 138 N.I. Act. D
Issue summons upon the accused Persons at once. To 3/2/
05 for S/R & appear .... "

The respondents allegedly received the summons sent to them at
Kolaghat, Midnapore, West Bengal. E
Despite receipt of the summons instead of appearing before the Court
of the Chief Judicial Magistrate, Birbhum at Suri, the respondents filed a writ
petition in the High Court of Kerala at Emakulam which was registered as W.P.
(C) No. 2666 of 2005 praying, inter alia, for the following reliefs :
F
"(a) declare that the petitioners herein are not liable to be proceeded
against on the basis of Ext. P4 complaint;

(b) declare that the petitioners herein are not liable to be proceeded
against on the basis of Ext. P4 complaint;
G
(c) issue an appropriate writ, order or direction quashing Ext. P4
complaint; "

Interim relief by way of stay of all further proceedings pursuant to the
said complaint petition including the arrest of the petitioners; pending final
disposal of the said writ petition was also prayed for. H
600 SUPREME COURT REPORTS [2006] 2 S.C.R.

A A learned Single Judge of the Kerala High Court on 25.1.2005 passed
the following order:
•
"Notice and interim stay for six months."

The said order of stay is said to have been extended from time to time.
B
It is not disputed that the respondents herein undertook the work of
construction of major bridges between Dhankuni & Kharagpur in the State
of West Bengal as a part of ongoing project of the National Highway Authority
of India to widen and strengthen the National Highway. It is furthermore not
C in dispute that for the purpose of executing the said work the company
entered into an engineering contract with the National Highway Authority of
India.

In the writ petition, it was stated:

"The 1st respondent herein a stone quarry owner, is a person who
D supplied crushed stone aggregates a raw material that was needed for
the aforesaid work undertaken by the !st petitioner company. He
along with another had entered into an agreement with the Ist petitioner
company in that behalf, pursuant to which the supply was made. The
1st petitioner company gave good business to the I st respondent,
E paying him for than Rs. 3 crores in the transaction. However, towards
the end of the transactions, due to the aforesaid financial imbroglio
in which the !st petitioner company was placed in, an outstanding
amount of about 35 lakhs remained payable to the I st respondent
herein. There is no question of the I st petitioner company running
away from its responsibility of paying the amount due but it needed
F some time to augment its resources in the context of the
aforementioned financial entanglement it found itself in."

[Emphasis supplied]

It was accepted that for securing the payment for supply of stone chips
G post-dated cheques used to be given. The reason for bouncing of the said
cheques is said to be that all of them were presented without prior information
to the Company. The respondents further averred in the writ petition that 'the /
...
National Highway Authority had not paid them a sum of Rs. 5.5 crores.
However, the statements made in the complaint petition to the effect that a
H payment of a sum of Rs. 5,33, 795/- out of the total demand of Rs.35,48,640/
.
'

MUSARAF HOSSAIN KHAN v.BHAGHEERA THA ENGG: LTD [SINHA, J.] 601
was made, had been admitted. Some purported questions of law have been A
raised in the said writ petition contending as to why the order taking
cognizance was bad in law including that in term of Section 219 of the Code
of Criminal Procedure the first respondent could not file one complaint in
respect of all the dishonoured five cheques.

The contention of the learned counsel appearing on behalf of the B
respondent is that as the cheques having been issued from the registered
office of the respondent company, a part of cause of action arose within the
jurisdiction of the Kerala High Court. Strong reliance in this behalf has been
placed on by the learned counsel in Navinchandra N. Majithia v. State of
Maharashtra, [2000] 7 SCC 640 and a decision of the learned Single Judge C
of the Kerala High Court in Augustine v. Omprakash Nanakram (2001) 2 KLT
638.

The primary question, which arises for consideration, is as to whether
the Kerala High Court had jurisdiction in the matter.
D
~· In the writ petition, the jurisdiction of the High Court was invoked
• stating:

"It is in these circumstances that the petitioners herein are approaching
this Hon'ble court with a prayer 'to quash Ext. P4 complaint. It is
respectfully that this Hon'ble Court has the necessary jurisdiction to E
interfere in the matter in as much as part of the cause of action arose
within the territorial jurisdiction of this Hon 'ble court. The registered
and Head Office of the !st Petitioner Company is at Vaz'1akkala,
Kakkanad, Ernakulam and the amount due under the cheques that are
the subject matter of Ext. P4 complaint was meant to be payable at
Ernakulam. In fact out of the 6 dishonoured cheques, payment in F
respect of one cheque was sent from Ernakulam along with Ext. P2
reply."

In Navinchandra N. Majithia (supra) a contract was entered into by
and between a company, !ndian Farmers Pvt. Ltd. (!FPL) and Chinar Exort Ltd.
- (CEL). The appellant therein was the Managing Director of the !FPL company. G
CEL entered into an agreement with !FPL for purchase of the entire shares
of !FPL for which it paid earnest money. It, however, failed to fulfil its
commitment to pay the balance purchase price within the specified time. The
!FPL terminated the agreement. A suit was filed by CEL in the High Court of
Bombay for specific performance of the said agreement. Two shareholders of H
602 SUPREME COURT REPORTS [2006] 2 S.C.R.

A CEL took over management and control of the company as Directors and they
formed another company named JBHL at Shilong in the State of Meghalaya.
Later the said suit was withdrawn upon the appellant's returning the amount
•
paid by CEL which was earlier forfeited by the appellant. Pursuant to the said
agreement JBHL made payments for the purchase of shares of !FPL. But the
B appellant therein contended that as JBHL committed default in making the
balance payment and thereby committed breach of the agreement, the said
agreement stood terminated and the earnest money stood forfeited as stipulated
in the agreement. In the aforementioned situation a complaint was filed by the
JBHL against the appellant at Shillong. The maintainability of the said complaint
came to be questioned by Majithia by filing a writ petition before the Bombay
C High Court which was dismissed. Writ jurisdiction under Article 226 of the
Constitution was invoked on the ground that the entire transaction on which
the complaint was based had taken place at Mumbai and not at any other
place outside the said town, much less at Shillong. It was further contended
that the jurisdiction to investigate into the contents of the complaint was only
with the police/courts in Mumbai. The prayers made in the said writ petition
D were:

"(a) to quash the complaint lodged by JBHL or in the alternative to
•.
issue a writ of mandamus directing the State of Maghalaya to transfer
the investigation being conducted by the officers of CID at Shillong
to the Economic Offences Wing, General Branch of CID, Mumbai or
E any other investigating agency of the Mumbai Police, and

(b) to issue a writ of prohibition or any other order or direction
restraining the Special SP Police, CID, Shillong and/or any investigating
agency of the Meghalaya Police from taking any further step in
respect of the complaint lodged by JBHL with the police authorities
F
at Shillong."

The said writ petition, as indicated hereinbefore, was dismissed by the
Bombay High Court. This Court reversed the said order opining that the entire
cause of action arose within the jurisdiction of the High Court of Bombay.
G Upon noticing some earlier decisions of this Court, it was observed :

"Tested in the light of the principles laid down in the cases noted
above the judgment of the High Court under challenge is unsustainable.
The High Court failed to consider all the relevant facts necessary to
arrive at a proper decision on the question of maintainability of the
H writ petition. on the ground of lack of territorial jurisdiction. The Court
I
~
/

MUSARAF HOSSAIN KHAN r.BHAGHEERA THA ENGG. LTD [SINHA,.!.] 603

• based its decision on the sole consideration that the complainant had A
filed the complaint at Shillong in the State of Meghalaya and the
petitioner had prayed for quashing the said complaint. The High Court
did not also consider the alternative prayer made in the writ petition
that a writ of mandamus be issued to the State of Meghalaya to
transfer the investigation to Mumbai Police. The High Court also did B
not take note of the averments in the writ petition that filing of the
complaint at Shillong was a ma/a fide move on the part of the
complainant to harass and pressurise the petitioners to reverse the
transaction for transfer of shares. The relief sought in the writ petition
may be one of the relevant criteria for consideration of the question
but cannot be the sole consideration in the matter. On the averments C
made in the writ petition gist of which has been noted earlier it cannot
be said that no part of the cause of action for filing the writ petition
arose within the territorial jurisdiction of the Bombay High Court."

In Augustine (supra) a learned .single Judge of the Kerala High Court
again on arriving at a finding of fact obtaining therein was of the opinion that D
the cause of action, therefore, arose within the jurisdiction of the Kerala High
Court. It was, however, rightly held:

"So far as the question of territorial jurisdiction with reference to a
criminal offence is concerned, the main factor to be considered is the E
place where the alleged offence was committed."

Cause of action within the meaning of clause (2) of Article 226 shall
have the same meaning as is ordinarily understood. The expression 'Cause
of action' has a definite connotation. It means a bundle of facts which would
be required to be proved. F
In State of Rajasthan & Ors. v. Mis Swaika Properties & Anr., [1985]
3 SCC 217 this Court observed that service of notice was not an integral part
of 'cause of action' within the meaning of Article 226 (2) of the Constitution
of India.
G
In Aligarh Muslim University & Anr. v. Vinay Engineering Enterprises
Pvt. Ltd. & Anr., [ 1994] 4 SCC 710 a three Judge Bench opined that only
because the office of the firm was at Calcutta, the High Court of Calcutta
could not exercise any jurisdiction, stating :

" ... We are constrained to say that this is a case of abuse of jurisdiction H
604 SUPREME COURT REPORTS [2006) 2 S.C.R.

A and we feel that the respondent deliberately moved the Calcutta High
Court ignoring the fact that no part of the cause of action had arisen
within the jurisdiction of that Court. It clearly shows that the litigation
•
filed in the Calcutta High Court was thoroughly unsustainable."

Yet again in Oil and Natural Gas Commission v. Utpal Kumar Basu &
B Ors., [ 1994) 4 SCC 711 it was held that a party becoming aware of the contract
to be given to a successful bidder "ONGC" on reading the advertisement,
which appeared in the Times of India at Calcutta or sending representations
or fax messages submitting tender from its Calcutta Office pursuant to the
·.fi
said advertisement, would not confer any cause of action on the Calcutta
c High Court, stating:

"Therefore, broadly speaking, NICCO claims that a part of the cause
of action arose within the jurisdiction of the Calcutta High Court
because it became aware of the advertisement in Calcutta, it submitted
its bid or tender from Calcutta and made representations demanding
D justice from Calcutta on learning about the rejection of its offer. The
advertisement itself mentioned that the tenders should be submitted
~
to EIL at New Delhi; that those would be scrutinised at New Delhi and .(

that a final decision whether or not to award the contract to the
tenderer would be taken at New Delhi. Of course, the execution of the
contract work was to be carried out at Hazira in Gujarat. Therefore,
E merely because it read the advertisement at Calcutta and submitted
the offer from Calcutta and made representations from Calcutta would
not, in our opinion, constitute facts forming an integral part of the
cause of action. So also the mere fact that it sent fax messages from
Calcutta and received a reply thereto at Calcutta would not constitute
F an integral part of the cause of action."

In Nakul Dea Singh v. Deputy Commandant ( 1999) 3 KL T 629, a Full
Bench of the Kerala High Court speaking through one of us, P.K.
Balasubramanyan, J., while considering the question as to whether receipt of
an order passed by an appellate authority in a disciplinary proceeding would
G constitute cause of action, upon noticing the definition thereof as stated in
Mulla's Code of Civil Procedure, 15th Edn., Vol. I at page 251 and a decision
of the Court of Appeal in Paragon Finance v. D.B. Thakerar & Co., (1999) ,.,~

I All ER 400, opined :

" ... The fact that a person who was dismissed from service while he
H was in service outside the State would have to suffer the consequence
MUSARAF HOSSAIN KHAN v.BHAGHEERA THA ENGG. LTD [SINHA, J.] 605
of that dismissal when he is in his native place by being rendered A
jobless, is not a fact which constitutes the bundle of facts giving rise
to a cause of action in his favour to challenge his dismissal. That right
accrued to him earlier when he was dismissed from service outside the
State and he lost his employment. Similarly, when an appeal is filed
by him to an appellate authority who is outside the jurisdiction of this
High Court and that appeal is dismissed by the appellate authority, B
the merger in the decision of the Appellate Authority takes place
when the appeal is dismissed and not when the appellant receives the
order. What a writ petitioner need plead as a part of his cause of
action is the fact that his appeal was dismissed wholly or in part and
not the fact that the order was communicated to him. That plea is C
relevant only to show when the right of action arose in his favour.
The receipt of the order only gives him a right of action on the already
accrued cause of action and enables him to meet a plea of !aches or
limitation raised in opposition. That the consequences of a proceeding
in the larger sense are suffered by a person in his native place is not
a ground to hold that the High Court within the jurisdiction of which D
the native place is situate is also competent to entertain a Writ Petition
under Art. 226 of the Constitution. When a person is dismissed or
reduced in rank, he suffers the consequences where he was employed
at the relevant time and not in his native place to which he might have
retired on his dismissal."
E
In Union ofIndia and Ors. v. Adani Exports Ltd and Anr., [2002] l SCC
567, this Court observed :

"It is seen from the above that in order to confer jurisdiction on a
High Court to entertain a writ petition or a special civil application as·
in this case, the High Court must be satisfied from the entire facts
pleaded in support of the cause of action that those facts do constitute
a cause so as to empower the court to decide a dispute which has,
at least in part, arisen within its jurisdiction. It is clear from the above
judgment that each and every fact pleaded by the respondents in their
application does not ipso facto lead to the concl~sion that those facts G
give rise to a cause of action within the court's territorial jurisdiction
unless those facts pleaded are such which have a nexus or relevance
with the !is that is involved in the case. Facts which have no bearing
with the !is or the dispute involved in the case, do not give rise to
a cause of action so as to confer territorial jurisdiction on the court H
concerned"
i

606 SUPREME COURT REPORTS [2006] 2 S.C.R.
(
A It is no doubt true that in a criminal matter also the High Court may
exercise its extra-ordinary writ jurisdiction but interference with an order of
Magistrate taking cognizance under Section 190 of the Code of Criminal
Procedure will stand somewhat on a different footing as an order taking
cognizance can be the subject matter of a revisional jurisdiction as well as of
B an application invoking the inherent jurisdiction of the High Court. A writ of
certiorari ordinarily would not be issued by a writ court under Article 226 of
the Constitution of India against a Judicial Officer. [See Naresh Shridhar
Mirajkar & Ors. v. State of Maharashtra & Anr., AIR (1967) SC I : (1966]
3 SCR 744. However, we are not oblivious of a decision of this Court in Surya
Dev Rai v. Ram Chander Rai & Ors., (2003] 6 SCC 675 wherein this court
C upon noticing Naresh Shridhar Mirajkar (supra) and also relying on a
Constitution Bench of this Court in Rupa Ashok Hurra v. Ashok Hurra, (2002]
4 SCC 388 opined that a Judicial Court would also be subject to exercise of
writ jurisdiction of the High Court. The said decision has again been followed
in Ranjeet Singh v. Ravi Prakash (2004] 3 SCC 692. It is, however, not
necessary to dilate on the matter any further. The jurisdiction of the High
D Court under Section 482 of Code of Criminal Procedure was noticed recently
by this Court in State of UP. & Ors. v. Surendra Kumar, (2005] 9 SCC 161
holding that even in terms thereof. the court ~annot pass an order beyond
the scope of the application thereof. In Surya Dev Rai (supra), we may
however, notice that this Court categorically stated that the High Court in
E issuing a writ of certiorari exercises a very limited jurisdiction. It also made
a distinction between exercise of jurisdiction by the High Court for issuance
of a writ of certiorari under Article 226 and 227 of the Constitution of India.
It categorically laid down that while exercising its jurisdiction under Article
226, the High Court can issue a writ of certiorari only when an error apparent
on the face of the record appears as such; the error should be self evident.
F Thus, an error according to this Court needs to be established. As regards _...
exercising the jurisdiction under Article 227 of the Constitution of India it was
held:

" .... The power may be exercised in cases occasioning grave injustice
or failure of justice such as when (i) the court or tribunal has assumed
G a jurisdiction which it does not have, (ii) has failed to exercise a
jurisdiction which it does have, such failure occasioning a failure of
justice, and (iii) the jurisdiction though available is being exercised in
a manner which tantamounts to overstepping the limits of jurisdiction."

H In Kusum Ingots & Alloys ltd v. Union of India & Anr., [2004] 6 SCC
I
t
/

MU SARAF HOSSAIN KHAN v.BHAGHEERA THA ENGG. LTD [SINHA, J .] 607

254 a three Judge Bench of this Court clearly held that with a view to A
determine the jurisdiction of one High Court viz.-a-viz the other the facts
pleaded in the writ petition must have a nexus on the basis whereof a prayer
can be made and the facts which have nothing to do therewith cannot 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 B
a legislation is passed, it would not have the sole territorial jurisdiction but
all the High Courts where cause of action arises, will have jurisdiction.
Distinguishing, however, between passing of a legislation by a Legislature of
the State and an order passed by the Tribunal or Executive Authority, it was
held:
c
"When an order, however, is passed by a court or tribunal or an
executive authority whether under provisions of a statute or otherwise,
a part of cause of action arises at 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
at both the places. In other words, as order of the appellate authority D
constitutes a part of cause of action, a writ pet.ition 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 aside and as the order of the original authority
merges with that of the appellate authority. E
Lt. Col. Khajoor Singh v. Union of India whereupon the learned
counsel appearing on behalf of the appellant placed strong reliance
was rendered at a point of time when clause (2) of Article 226 had not
been inserted. In that case the Court held that the jurisdiction of the
High Court under Article 226 of the Constitution of India, properly p
construed, depends not on the residence or location of the person
affected by the order but of the person or authority passing the order
and the place where the order has effect. In the latter sense, namely,
the office of the authority which is to implement the order would
attract the territorial jurisdiction of the Court was considered having
regard to Section 20( c) of the Code of Civil Procedure as Article 226 G
of the Constitution thence stood, stating: (AIR p.540, para 16)

"The concept of cause of action cannot in our opinion be
introduced in Article 226, for by doing so we shall be doing away
with the express provision contained therein which requires that
H
608 SUPREME COL'RT REPORTS (2006] 2 S.C.R.

A the person or authority to whom the writ is to be issued should
f
be resident in or located within the territories over which the High
Court has jurisdiction. It is true that this may result in some
inconvenience to persons residing far away from New Delhi who
are aggrieved by some order of the Government of India as such,
and that may be a reason for making a suitable constitutional
B amendment in Article 226. But the argument of inconvenience, in
our opinion, cannot affect the plain language of Article 226, nor
can the concept of the place of cause of action be introduced into
it for that would do away with the two limitations on the powers
''
of the High Court contained in it."
c In Union of India and Ors. v. Adani Exports Ltd & Anr., [2002] I SCC
567, this Court observed :

"17. It is seen from the above that in order to confer jurisdiction
on a High Court to entertain a writ petition or a special civil application
D as in this case, the High Court must be satisfied from the entire facts
pleaded in support of the cause of action that those facts do constitute
a cause so as to empower the court to decide a dispute which has,
at least in part, arisen within its jurisdiction. It is clear from the above
judgment that each and every fact pleaded by the respondents in their
application does not ipso facto lead to the conclusion that those facts
E give rise to a cause of action within the court's territorial jurisdiction
unless those facts pleaded are such which have a nexus or relevance
with the lis that is involved in the case. Facts which have no bearing
with the lis or the dispute involved in the case, do not give rise to
a cause of action so as to confer territorial jurisdiction on the court
concerned .."
F
We have referred to the scope of jurisdiction under Articles 226 and 227
of the Constitution only to highlight that the High Courts should not ordinarily
interfere with an order taking cognizance passed by a competent court of law
except in a proper case. Furthermore only such High Court within whose
G jurisdiction the order of subordinate court has been passed, would have the
jurisdiction to entertain an application under Article 227 of the Constitution
of India unless it is established that the earlier cause of action arose within
the jurisdiction thereof.

The High Court, however, must remind themselves about the doctrine
H of forum non conveniens also. [See Mayar (H.K) Ltd.& Ors. v. Owners &
i

,t
MUSARAF HOSSAIN KHAN v.BHAGHEERA THA ENGG. LTD [SINHA, J.] 609
Parties Vessel M. V. Fortune Express & Ors., (2006) 2 SCALE 30] A
)
In terms of Section 177 of the Code of Criminal Procedure every offence
shall ordinarily be inquired into and tried by a court within whose local
jurisdiction it was committed. Section 178 provides for place of inquiry or trial
in the following terms:
B
"(a) When it is uncertain in which of several local areas an offence
was committed, or
(b) where an offence is committed partly in one local area and
partly in another, or
(c) where an offence is a continuing one, and continues to be C
committed in more local areas than one, or
(d) where it consists of several acts done in different local areas."

A bare perusal of the complaint petition would clearly go to show that
according to the complainant the entire cause of action arose within the D
jurisdiction of the district courts of Birbhum and in that view of the matter
it is that court which will have jurisdiction to take congnizance of the offence.
In fact the jurisdiction of the court of CJM, Suri, Birbhum is not in question.
It is not contended that the complainant had suppressed material fact and
which if not disclosed would have demonstrated that the offence was
committed outside the jurisdiction of the said court. Even if Section 178 of E
the Code of Criminal Procedure is attracted, the court of the Chief Judicial
Magistrate, Birbhum will alone have jurisdiction in the matter.

Sending of cheques from Ernakulam or the respondents having an office
at that place did not form an integral part of 'cause of action' for which the
complaint petition was filed by the appellant and cognizance of the offence F
under Section 138 of the Negotiable Instruments Act, 1881 was taken by the
Chief Judicial Magistrate, Suri. We may moreover notice that the situs of the
accused wherefor jurisdiction of a court can be invoked and which is an
exception to the aforementioned provisions as contained in Section 188 of the
Code of Criminal Procedure recently came up for consideration by this court G
in Om Hemrajani v. State ofU.P. & Anr., [2005] I SCC 617. It was held that
the said provisions may be interpreted widely. The law was laid down in the
fo !lowing terms :

"Section 177 postulates that ordinarily offence shall be inquired into
and tried by a court within whose local jurisdiction it was committed. H

•
f
610 SUPREME COURT REPORTS [2006) 2 S.C.R.

A Section 17 8, inter alia, deals with situations when it is uncertain in
which of several local areas, an offence is committed or partly f
committed in one area and partly in another. The section provides that
the offence can be inquired into or tried by a court having jurisdiction
over any of the local areas mentioned therein. Under Section 179,
offence is triable where act is done or consequences thereof ensued.
B Section 180 deals with the place of trial where act is an offence by
reason of its relation to other offence. It provides that the first-
mentioned offence may be inquired into or tried by a court within
whose local jurisdiction either act was done. In all these sections, for
jurisdiction the emphasis is on the place where the offence has been
c committed. There is, however, a departure under Section 181(1) where
additionally place of trial can also be the place where the accused is
found, besides the court within whose jurisdiction the offence was
committed. But the said section deals with offences committed by
those who are likely to be on the move which is evident from the
nature of offences mentioned in the section. Section 181 (I) is in
D respect of the offences where the offenders are not normally located
at a fixed place and that explains the departure. Section 183 deals with
offences committed during journey or voyage. Section 186 deals with
situation where two or more courts take cognizance of the same
offence and in case of doubt as to which one of the courts has
E jurisdiction to proceed further, the High Court decides the matter.
Section 187 deals with a situation where a person within the local
jurisdiction of a Magistrate has committed an offence outside such
jurisdiction. The Magistrate can compel such a person to appear
before him and then send him to the Magistrate which has jurisdiction
to inquire into or try such offence.
F
9. Under the aforesaid circumstances, the expression abovenoted in
Section 188 is to be construed. The same expression was also there >
•
in the old Code. From the scheme of Chapter XIII of the Code, it is
clear that neither the place of business nor place of residence of the
petitioner and for that matter of even the complainant is of any
G relevance. The relevant factor is the place of commission of offence.
By legal fiction, Section 188 which deals with offence committed
outside India, makes the place at which the offender may be found,
to be a place of commission of offence. Section 188 proceeds on the
basis that a fugitive from justice may be found anywhere in India. The
H finding of the accused has to be by the court where the accused
~.

MUSARAF HOSSAIN KHAN v.BHAGHEERA THA ENGG. LTD [SINHA, J.] 611

) ~ppears. From the plain and clear language of the section, it is evident A
that the finding of the accused cannot be by the complainant or the
police. Further, it is not expected that a victim of an offence which was
...... committed outside India should come to India and first try to ascertain
where the accused is or may be and then approach that court. The
convenience of such a victim is of importance. That has been kept in B
view by Section 188 of the Code. A victim may come to India and
approach any court convenient to him and file complaint in respect
of offence committed al>toad by an Indian. The convenience of a
> person who is hiding after committing offence abroad and is a fugitive
from justice is not relevant. It is in this context, the expression in
question has to be interpreted. Section 188 has been the subject- c
matter of interpretation for about 150 years."

In this case, the averments made in the writ petition filed by the
respondent herein even if given face value and taken to be correct in their
entirety would not confer any jurisdiction upon the Kerala High Court. The
agreement was entered into within the jurisdiction of the Calcutta High Court. D
_, The project for which the supply of stone chips and transportation was being
~ carried out was also within the State of West Bengal. Payments were obviously
required to be made within the jurisdiction of the said court where either the
contract had been entered into or where payment was to be made.
., E
The appellant did not deny or dispute any of the averments made in the
complaint petition. In the writ petition it merely wanted some time to make the
payment. It is now well known that the object of the provision of Section 138
of the Act is that for proper and smooth functioning of business transaction
in particular, use of cheques as negotiable instruments would primarily depend
upon the integrity and honesty of the parties. It was noticed that cheques F
~-
( used to be issued as a device inter alia for defrauding the creditors and
stalling the payments. It was also noticed in a number of decisions of this
Court that dishonour of a cheque by the bank causes incalc1:1lable loss, injury
and inconvenience to the payee and the entire credibility of the business
transactions within and outside the country suffers a serious setback. It was
also found that the remedy available in a civil court is a long-drawn process
G
and an unscrupulous drawer normally takes various pleas to defeat the genuine
")
·'\ claim of the payee.

[See Goa Plast (P) Ltd v. Chico Ursula D'Souza [2004] 2 SCC 235 and
Monaben Ketanbhai Shah and Anr. v. State of Gujarat & Ors., [2004] 7 SCC H
1
612 SUPREME COURT REPORTS [2006] 2 S.C.R.

A 15]. f

In Prem Chand Vijay Kumar v. Yashpal Singh & Anr.. [2005] 4 SCC 417,
we may, however, notice that it was held that for securing conviction under
Negotiable Instruments Act, 1881 the facts which are required to be proved
..
are:
B
"(a) that the cheque was drawn for payment of an amount of
money for discharge of a debt/liability and the cheque was
dishonoured; J
(b) that the cheque was presented within the prescribed period;
c (c) that the payment made a demand for payment of the money
by giving a notice in writing to the drawer within the stipulated
period; and
(d) that the drawer failed to make the payment within 1S days of
the receipt of the notice."
D
For the purpose of proving the aforementioned ingredients of the offence
under Section 138 of the Act, the complainant-appellant was required to prove 1- ,.
the facts constituting the cause of action therefor none of which arose within
the jurisdiction of the Kerala High Court. It is, apt to mention that In Prem
Chand Vijay Kumar (supra) this Court held that cause of action within the
E meaning of Section 142 (b) of the Act can arise only once.

For the reasons aforementioned, we are of the opinion that the Kerala

F
High Court had no jurisdiction to entertain the writ petition as no part of
cause of action arose within its jurisdiction.

For the foregoing reasons this appeal is allowed. The impugned Judgment
and order is set aside. Interim orders passed by the High Court shall stand
-
vacated. The respondent shall now appear before the court concerned.

In the facts and circumstances of the case, appellants are entitled to
costs which is assessed at Rs. I0,000.
G
vs. Appeal allowed.
<
/