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[Cites 22, Cited by 0]

Gujarat High Court

C Doctor & Company Private Limited vs Tata Projects Limited & on 23 December, 2016

Author: A.G.Uraizee

Bench: A.G.Uraizee

                 C/AO/365/2016                                             CAV ORDER




                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                          APPEAL FROM ORDER NO. 365 of 2016
                                            With
                            CIVIL APPLICATION NO. 9769 of 2016
                                              In
                           APPEAL FROM ORDER NO. 365 of 2016
                                            With
                           APPEAL FROM ORDER NO. 366 of 2016
                                            With
                            CIVIL APPLICATION NO. 9770 of 2016
                                              In
                           APPEAL FROM ORDER NO. 366 of 2016
         ================================================================

C DOCTOR & COMPANY PRIVATE LIMITED....Appellant(s) Versus TATA PROJECTS LIMITED & 1....Respondent(s) ================================================================ Appearance:

ARJUN R SHETH, ADVOCATE for the Appellant(s) No. 1 MR RA MISHRA, ADVOCATE for the Respondent(s) No. 2 NANAVATI ASSOCIATES, CAVEATOR for the Respondent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE A.G.URAIZEE Date : 23/12/2016 COMMON CAV ORDER
1. This appeal under Order 43 Rule (1)(r) of the  Code   of   Civil   Procedure,   1908   (hereinafter  referred to as the Code for the sake of brevity)  questions   order   dated   29.09.2016   passed   by   the  learned   Chamber   Judge,   City   Civil   Court,   Court  No.4,   Ahmedabad   below   Exhibit­23   in   Civil   Suit  No.1675   of   2016   whereby   an   application   under  Page 1 of 19 HC-NIC Page 1 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER Order   VII   Rule   (10)   of   the   Code   of   Civil  Procedure, 1908 preferred by the respondent No.1  is allowed and the plaint of Civil Suit No.1675  of 2016 instituted by the appellant is ordered to  be   returned   for   presenting   the   same   in   a  competent Court at Hyderabad.
2. The   brief   facts   which   are   necessary   to   be  considered to resolve the issue involved in this  appeal can be summed up as under:­

2.1. The appellant was awarded a contract by  the respondent No.1 to set up ventilation system  for two units of 800 M.W. each at Sri Damodaran  Sanjeevaiah   Thermal   Power   Plant   of   APPDCL   at  Krishnapatnam,   District­Nellore,   Andhra   Pradesh.  Thereupon, the appellant and the respondent No.1  entered   into   (supply   contract)   dated   31.03.2011  bearing purchase order No.­SBU­PG/2x800MW SDSTPS­ K'patnam/1438   for   supply   of   material   for  installation   of   the   ventilation   system   for   the  value of Rs.7,53,71,000/­.

2.2 The   appellant   and   the   respondent   No.1  also entered into another (Erection Contract) on  the   same   date   i.e.   on   31.03.2011   bearing   work  order   No.SBU­PG/2x800MW   SDSTPS­K'patnam/1440   for  erection of the ventilation system for the total  value of Rs.58,15,000/­.




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3. Pursuant   to   clause   No.12   of   the   said  contract,   the   appellant   furnished   performance  bank   guarantee,   Ahmedabad.   Later   on,   the  appellant   changed   its   bankers   from   HDFC   Bank  Limited   to   Oriental   Bank   of   Commerce,   Ahmedabad  (respondent   No.2)   and   replaced   the   performance  bank guarantee.

4. Pursuant   to   the   contracts,   the   ventilation  system   were   installed   and   the   performance   bank  guarantee test was successfully conducted by the  appellant   for   the   two   units   on   20.03.2015   and  24.06.2015   respectively.   Thereafter,   it   appears  that the correspondence and joint inspection took  place   between   the   appellant   and   the   respondent  No.2  with  regard  to the  account  statement,   and,  ultimately,   by   letter   dated   26.08.2016,   the  respondent   No.1   demanded   a   sum   of  Rs.2,23,81,310/­   in   relation   to   the   contracts  within seven days failing which it threatened to  encash   the   performance   bank   guarantee  (hereinafter   referred   to   PBG).   The   appellant,  therefore,   approached   the   City   Civil   Court,  Ahmedbad   by   instituting   Civil   Suit   No.1675   of  2016   for   restraining   the   defendant   No.1   from  encashing   the   PBG   along   with   Notice   of   Motion  Exhibit­6/7   to   restrain   the   defendant   No.1   from  encashing the PBG.





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                 C/AO/365/2016                                         CAV ORDER



5. The   respondent   No.1   entered   its   appearance  and   submitted   an   application   Exhibit­23   under  Order VII Rule (10) of the Code for return of the  plaint for being presented to Court of competent  jurisdiction  at Hyderabad  on  the ground  that  in  view of clause 5.1 of the work order and purchase  order   the   courts   at   Hyderabad   have   exclusive  jurisdiction   in   all   matters   arising   under   the  contract. The learned trial Judge by the impugned  order has allowed the application and has ordered  to return the plaint to the appellant for being  presented   to   the   Court   having   jurisdiction   at  Hyderabad.   The   learned   trial   Judge,   in   view   of  this   order   did   not   decide   the   Notice   of   Motion  and left it to be decided by the competent Court  at   Hyderabad.   The   appellant   being   aggrieved   by  this impugned order has preferred this appeal. 

6. I   have   heard   Mr.   Mihir   Thakore,   learned  senior   counsel   assisted   by   Mr.   Arjun   R.   Sheth,  learned   advocate   for   the   appellant,   Mr.   K.S.  Nanavati, learned senior counsel assisted by Mr.  Rahil   Patel   and   Mr.   Pratik   Balia,   learned  advocates for Nanavati Associates for respondent  No.1   and   Mr.R.A.   Mishra,   learned   advocate   for  respondent No.2­Bank.

7. With the consent of learned counsels for the  parties   the   appeal   was   heard   on   merits   and   is  Page 4 of 19 HC-NIC Page 4 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER being finally disposed of by this judgment. 

8. The   learned   counsel   for   the   appellant  contends   that   the   Bank   Guarantee   is   a   separate  and  independent  contract  as held  by the  Supreme  Court   in   the   case   of  H.   Construction   Company   Limited v. State of Bihar and others  reported in  (1999) 8 SCC 436 and Himadri Chemicals Industries   Ltd. v. Coaltar Refinery Co.,  reported in (2007)  8   SCC   110.   and   the   bank   is   not   party   to   the  contract   dated   31.03.2011   entered   into   between  the appellant and the respondent No.1. According  to his further contention the bank guarantee does  not contain a clause similar to clause 5.1 of the  erection   contract   between   the   appellant   and  respondent No.2. He, therefore, submits that the  jurisdiction   of   Court   at   Ahmedabad   cannot   be  ousted on the basis of clause 5.1 to maintain the  suit against the respondent No.2­Bank. It is his  further   submissions   that   the   decision   of   the  Supreme   Court   in   the   case   of  South   East   Asia  Shipping Co. Ltd. v. Nav Bharat Enterprises Pvt.   Ltd. and others  reported in  (1966) 3 SCC 443  is  not applicable to the facts of the present case  as it pertains to the invoking bank guarantee and  does not reflect upon suit to restrain the bank  from   disbursing   funds   under   the   bank   guarantee.  It   is   his   further   contention   that   in   view   of  provisions   of   Section   20(B),   the   City   Civil  Page 5 of 19 HC-NIC Page 5 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER Court,   Ahmedabad   has   jurisdiction   as   the  respondent   No.2­Bank   has   a   plant   in   Ahmedabad,  the   PBG   is   issued   at   Ahmedabad,   the   appellant  intimated  the  bank  about  the fraud  committed  by  the   respondent   No.1   at   Ahmedabad   and   the  respondent   No.1   has   in   fact   invoked   the   bank  guarantee   at   Ahmedabad,   and   therefore   the   City  Civil Court, Ahmedabad has got the jurisdiction.  He   would   also   further   contend   that   the   Supreme  Court has not considered Section 20(B) of the CPC  in the case of South East Asia Shipping Co. Ltd. (supra).  It is his further contention that since  the knowledge of fraud was brought to the notice  of   respondent   No.2­Bank   at   Ahmedabad,   being   a  relevant   factor,   in   view   of   decision   of   the  Supreme   Court   in   the   case   of  U.P.   State   Sugar  Corporation v. SUMAC International Ltd.  reported  in  1997   (1)   SCC   568,  the   City   Civil   Court,  Ahmedabad   has   got   jurisdiction.   He,   therefore,  submits   that   the   learned   trial   Judge   has  committed an error in returning the plaint to the  appellant   for   presenting   the   same   in   the  competent  Court  at  Hyderabad   and urges  that  the  appeal may be allowed. 

9. Mr. K.S. Nanavati, learned senior counsel for  respondent   No.1   submits   that   for   deciding   the  question   of   jurisdiction,   the   Court   is   required  to consider the averments made in the plaint and  Page 6 of 19 HC-NIC Page 6 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER the facts of the lis between the parties are to  be   considered.   He   further   submits   that   the  execution of bank guarantee of the defendant No.2  in   Ahmedabad   and   its   invocation   at   Ahmedabad  would   not   confer   jurisdiction   at   Ahmedabad.   He  has relied upon the various decisions as under:­ "(a) South East Asia Shipping Co. Ltd. v. Nav   Bharat   Enterprises   Pvt.   Ltd.   and   others   reported in 1996 (3) SCC 443.

(b) DLF Industries Ltd. v. ABN Amro Bank and   others reported in 2000 (55) DRJ 470 (DB).

(c)   Engineering   Projects   (India)   Limited   v.  Greater   Noida   Industrial   Development   and  Another   reported   in   113(2004)DLT465:  

MANU/DE/0555/2004.
(d) McNally   Bharat   Engineering   Company   Limited v. Maharashtra State Power Generation   Company   Ltd.   reported   in   AIR   2015   Cal   207   :  
MANU/WB/0447/2015."

10. He further submits that cause of action is a  bundle   of   facts   and   only   such   facts   which   are  essential and material need to be proved to give  right   to   the   appellant   to   get   relief   would   for  integral   part   of   cause   of   action   to   confer  jurisdiction of a particular Court. In support of  his   submission,   he   has   relied   upon   various  decision as under:­ "(a) Union   of   India   and   others   v.   Adani   Exports Ltd. and another reported in (2002) 1  SCC 567.



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(b) Alchemist Ltd. and anothers v. State Bank   of Sikkim and others reported in (2007) 11 SCC 

335.

(c)   State   of   Rajasthan   and   others   v.   Swaika   Properties   and   another   reported   in   (1985)   3   SCC 217." 

11. He would also submit that receipt of letter  dated 30.08.2016 by respondent No.2­Bank does not  form part of cause of action to institute a suit  within the territorial limits of City Civil Court  at  Ahmedabad.  It is his  further  submission   that  so called fraudulent invocation of the PBG by the  respondent No.1 occurred prior to issue of notice  dated   30.08.2016   to   the   respondent   No.1   by   the  appellant.   He,   therefore,   submits   that   such   a  notice by the appellant does not furnish cause of  action   to   institute   a   suit   for   injunction.   He  relies upon the following decision in support of  this contention:­ "(a) Bata   Shoe   Co.   Ltd.   v.   Union   of   India   reported   in   AIR   1954   Bom.   129: 

MANU/MH/0033/1954
(b)   Jaharlal   Pagalia   v.   Union   of   India  reported   in   AIR   1959   Cal   273:  
MANU/WB/0069/1954."

12. It   is   his   further   contention   that   the  allegation   of   fraud   being   committed   by   the  respondent   No.1   is   the   dispute   between   the  appellant   and   respondent   No.1   which   cannot   form  Page 8 of 19 HC-NIC Page 8 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER part   of   cause   of   action   against   the   respondent  No.2­Bank. He relied upon the following decisions  in support of this contention:­ "(a)   General   Electric   Technical   Services   Company Inc. v. Punj Sons (P) Ltd. and Another   reported in 1991 (4) SCC 230.

(b)   Dwarikesh   Sugar   Industries   Ltd.   v.   Prem   Heavy   Engineering   Works   (P)   Ltd.   reported   in  1997 (6) SCC 450.

(c)   Reliance   Salt   Ltd.   v.   Cosmos   Enterprises   and Another reported in 2006 (13) SCC 599.

(d) State Trading Corporation of India Ltd. v.   Jaisons   Clothing   Corporation   and   another   reported in 1994 (6) SCC 597."

13. Mr.   Nanavati,   learned   senior   counsel,  therefore,   urges  that the  impugned   order  of the  learned trial Judge does not warrant interference  in this appeal.

14. The   fulcrum   of   the   arguments   of   learned  counsel for the appellant is that the PBG is an  independent   contract,   and   since,   this   contract  does   not   contain   any   clause   as   regards   the  exclusion   of   jurisdiction   of   the   Court   at  Ahmedabad,   and   that   the   Branch   Office   of  respondent   No.2   is   situated   at   Ahmedabad,   and  that the notice of fraud having been committed by  the   respondent   No.1   is   served   on   the   Bank   at  Ahmedabad,   and   that   the   PBG   is   invoked   at  Page 9 of 19 HC-NIC Page 9 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER Ahmedabad.   The   Court   at   Ahmedabad   has   got  jurisdiction   and   the   learned   trial   Judge   has  fallen in error in recording the findings to the  contrary and has directed to return the plaint to  the appellant for being presented to the Court of  competent jurisdiction at Hyderabad.

15. The learned counsels of either side are not  at   conflict   on   the   proposition   of   law   that   the  bank   guarantee   is   an   independent   and   separate  contract and the same is absolute in nature, and  therefore, it is not necessary to delve deep into  the examination of this proposition of law. 

16. This   Court   in   the   case   of  Nizar   Sadaruddin   Khoja   v.   Vaibhav   Construction   (supra)  has   held  that jurisdiction of the Court has to be decided  on the basis of the averments as originally made  in   the   plaint   and   subsequent   amendment   in   the  plaint   would  not confer  jurisdiction  to a Court  which   has   no   jurisdiction   on   the   basis   of   the  averments   made   in   the   original   plaint,   the  relevant   observations   are   recorded   in   paragraph  No.13 as under:­ "13.   As   per   well   settled   principle   of   law,   suit   is   to   be   instituted   in   a   proper   Court   having   jurisdiction,   may   be   pecuniary,   territorial   or   statutory.   Institution   of   a  suit   in   a   Court   with   inherent   lack   of   jurisdiction,   the   institution   itself   will   be   bad and the Court cannot entertain. Since this   is   the   legal   position   the   Court   cannot   deal   with any application under Order 6 Rule 17 of   Page 10 of 19 HC-NIC Page 10 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER the Code with a view to invest or divest with   jurisdiction which otherwise the Court did not  have initially at the time of institution. Any   such order would be without jurisdiction. Once  the   suit   is   filed,   in   a   Court   having   proper   jurisdiction,   it   is   always   open   to   the   plaintiff,   at   any   stage   of   the   suit,   to   relinquish   or   abandon   a   part   of   claim   under   Order 23 Rule 1 of the Code. This can be done   by   mere   declaration   which   Court   may   record.   Such abandonment/relinquishment shall not have   any   effect   upon   jurisdiction   because   on   the   date   of   institution   the   Court   enjoyed   jurisdiction   and   still   enjoys   but   the   plaintiff does not want the Court to exercise   jurisdiction qua that claim. Hence, the Court   has   to   proceed   with   the   remaining   claim   for   which   the   plaintiff   requires   to   adjudicate.   The Simple analogy is that if on the date of   institution of the suit the Court was invested   with   jurisdiction   by   subsequent   abandonment   the jurisdiction is not usurped or taken away   but  simpliciter  the  Court  is  required  not  to  apply   mind   to   that   part   of   the   claim.   Thus,   when   suit   is   instituted   in   a   Court   with   jurisdiction   by   subsequent   abandonment   of   a  part of the claim even if such an abandonment   has   effect   of   divesting   with   pecuniary   jurisdiction then also the institution of suit  does   not   get   affected   and   the   Court   shall   decide the matter in accordance with law."

17. A similar view is taken by Delhi High Court  in the case of Archie Comic Publication v. Purple   Creations Pvt. Ltd. and others (supra).

18. The   hon'ble   Supreme   Court   in   the   case   of  South   East   Asia   Shipping   Co.   Ltd.   (supra)  has  laid   down   a   proposition   of   law   that   mere  execution  of  the bank  guarantee  at a particular  place   would   not   confer   jurisdiction   and   give  cause of action to a place at which such a bank  Page 11 of 19 HC-NIC Page 11 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER guarantee executed. The paragraph Nos.2 and 3 of  this judgment lays down a proposition as under:­ "2. The only controversy is whether the Delhi   High   Court   has   jurisdiction   to   entertain   the   suit.   It   is   an   admitted   position   that   the   contract was executed in Bombay. It is also an  admitted   position   that   the   performance   of  obligations and liabilities under the contract   was required to be done in Bombay inasmuch as   cargo   of   livestock   was   to   be   transported   in   the ship from Kandla to Damman or Jeddah. It   is   also   an   admited   position   that   in  furtherance   of   the   execution   of   the   contract   at   Bombay,   the   respondents   had   executed   the   bank guarantee at Delhi and had transmitted it  to Bombay for performance of the contract. The  question,   therefore,   is   whether   any   part   of   the cause of action had arisen in Delhi. The   learned counsel for the respondents had relied   upon   a   judgment   of   this   Court   in   A.B.C.   Laminart (P) Ltd. v. A.P. Agencies to contend   that   since   part   of   the   cause   of   action   had   arisen   in   Delhi,   the   High   Court   on   the  original   side   has   jurisdiction   to   entertain   the   suit.   We   are   unable   to   accept   the   contention.

3.   It   is   settled   law   that   cause   of   action   consists  of  bundle   of facts  which  give   cause   to enforce the legal injury for redress in a  court   of   law.   The   cause   of   action   means,   therefore, every fact, which if traversed, it  would be necessary for the plaintiff to prove   in order to support his right to a judgment of   the court. In other words, it is a bundle of   facts, which taken with the law applicable to   them,   gives   the   plaintiff   a   right   to   claim   relief against the defendant. It must include   some   act   done   by   the   defendant   since   in   the   absence   of   such   an   act   no   cause   of   action   would possible accrue or would arise. In view   of   the   admitted   position   that   contract   was   executed   in   Bombay,   i.e.,   within   the   jurisdiction   of   the   High   Court   of   Bombay,   performance   of   the   contract   was   also   to   be   done   within   the   jurisdiction   of   the   Bombay   High Court; merely because bank guarantee was   Page 12 of 19 HC-NIC Page 12 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER executed   at   Delhi   and   transmitted   for   performance to Bombay, it does not constitute   a   cause   of   action   to   give   rise   to   the   respondent   to   lay   the   suit   on   the   original   side  of  the  Delhi  High   Court.  The  contention   that   the   Division   Bench   was   right   in   its   finding and that since the bank guarantee was   executed   and   liability   was   enforced   from   the   bank   at   Delhi,   the   Court   got   jurisdiction,   cannot be sustained."

19. Delhi   High   Court   in   the   case   of  DLF   Industries   Ltd.   v.   ABN   Amro   Bank   and   others   (supra), Engineering Projects (India) Limited v.  Greater Noida Industrial Development and Another   (supra)    and the Colkata High Court in the case  of  McNally Bharat Engineering Company Limited v.   Maharashtra   State   Power   Generation   Company   Limited   (supra)  has   taken   similar   view   on   the  basis   of   the   decision   of   the   Hon'ble   Supreme  Court in the case of South East Asia Shipping Co.   Ltd. (supra).

20. The   Hon'ble   Supreme   Court   in   the   case   of  State   of   Rajasthan   and   others   v.   M/s.   Swaika   Properties   and   another   (supra)  while   explaining  the   meaning   of   cause   of   action   has   held   in  paragraph No.8 that the mere service of notice at  a particular place would not confer jurisdiction  to the Court of that particular place. Paragraph  No.8 of the judgment reads as under:­ "8. The   expression   'cause   of   action'   is   tersely   defined   in   Mulla's   Code   of   Civil   Procedure:

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HC-NIC Page 13 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER The 'cause of action' means every fact which,   if   traversed,   it   would   be   necessary   for   the   plaintiff   to   prove   in   order   to   support   his  right to a judgment of the Court. 
In other words, it is a bundle of facts which   taken   with   the   law   applicable   to   them   gives   the   plaintiff   a   right   to   relief   against   the   defendant.   The   mere   service   of   notice   under   Section 52(2) of the Act on the respondents at   their   registered   office   at   18­B,   Brabourne   Road,   Calcutta   i.e.   within   the   territorial   limits of the State of West Bengal, could not   give   rise   to   a   cause   of   action   within   that   territory   unless   the   service   of   such   notice   was  an   integral  part   of  the  cause   of   action.   The entire cause of action culminating in the   acquisition of the land under Section 52(1) of   the   Act   arose   within   the   State   of   Rajasthan   i.e.   within   the   territorial   jurisdiction   of   the Rajasthan High Court at the Jaipur Bench.   The answer to the question whether service of   notice   is   an   integral   part   of   the   cause   ODF   action within the meaning of Article 226(2) of   the   Constitution   must   depend   upon   the   nature   of   the   impugned  order   giving   rise   to   a  cause   of action. The notification dated February 8,  1984   issued   by   the   State   Government   under   Section 52(1) of the Act became effective the   moment   it   was   published   in   the   official   Gazette as thereupon the notified land became   vested   in   the   State   Government   free   from   all   encumbrances.   It   was   not   necessary   for   the   respondents to plead the service of notice on   them   by   the   Special   Officer,   Town   Planning   Department, Jaipur under Section 52(2) for the  grant   of   an   appropriate   writ,   direction   or   order   under   Article   226   of   the   Constitution   for   quashing   the   notification   issued   by   the   State   Government   under   Section   52(1)   of   the   Act.   If   the   respondent   felt   aggrieved   by   the   acquisition   of   their   lands   situate   at   Jaipur   and   wanted   to   challenge   the   validity   of   the   notification   issued   dby   the   State   Government   of Rajasthan under Section 52(1) of the Act by   a   petition   under   Article   226   of   the   Constitution,   the   remedy   of   the   respondents   for the grant of such relief had to be sought   by filing such a petition before the Rajasthan   High   Court,   Jaipur   Bench,   where   the   cause   of   Page 14 of 19 HC-NIC Page 14 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER action wholly or in part arose."
21. Similar view is expressed by the Bombay High  Court in the case of Bata Shoe Co. Ltd. v. Union   of   India   (supra)  and   the   Colkata   High   Court   in  the   case   of  Jaharlal   Pagalia   v.   Union   of   India  (supra).
22. As   per   the   settled   proposition   of   law   has  laid   down   by   this   Court   in   the   case   of  Nizar   Sadaruddin   Khoja  (supra)    the  question  of  cause  of  action  and jurisdiction  has  to be considered  and decided on the basis of averments made in the  plaint as originally instituted.
23. The   suit   as   originally   filed   contain  following substantive prayers:­ "a.   this   Hon'ble   Court   be   pleased   to   issue   injunction   restraining   the   Defendant   no.1   from   encashing   any   sum   of   money   under   the   Performance Bank Guarantee No.10510005114 dt. 

21.03.2014 for Rs. 5,81,500/­;

b.   this   Hon'ble   Court   be   pleased   to   issue   injunction   restraining   the   Defendant   no.2   from disbursing amounts under the Performance   Bank   Guarantee   No.10510005014   dt.   21.03.2014   for Rs.72,07,100/­, and the Performance Bank   Guarantee   No.10510005114   dt.   21.03.2014   for   Rs.5,81,500/­;

c.   ex­parte   ad­interim   and   /   or   interim   reliefs   in   terms   of   prayer   clause   40   (a)   and / or (b); 

24. During   the   pendency   of   Notice   of   Motion  Exhibit­6/7, the respondent No.1 invoked the bank  Page 15 of 19 HC-NIC Page 15 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER guarantee.   Therefore,   the   appellant   by  endorsement dated 26.07.2008 did not press prayer  40 (a) since  the same had become infructuous. 

25. In view of the deletion of prayer 40 (a) the  suit   survives for prayer 40 (b) for injunction  restraining respondent No.2­Bank from disbursing  the amounts under the PBG.

26. It   would   be   apposite   to   examine   averments  made in the suit by the appellant as originally  instituted.   The   paragraph   No.34   of   the   Suit   as  originally instituted reads as under:­ "34. That   the   defendant   No.2   carries   on  business within the territorial limits of this   Hon'ble   Court,   and   that   the   PBGs   in   question   have   been   executed   with   the   office   of   the   defendant   No.2   within   the   territorial   limits   of   this   Hon'ble   Court,   hence   part   cause   of  action has taken place within the jurisdiction   of   this   Hon'ble   Court   and   hence   this   Hon'ble   Court   has   jurisdiction   to   try   and   entertain   the present matter."

27. From   the   bare   reading   of   the   aforesaid  paragraph   makes   it   manifestly   clear   that   the  appellant has tried to invoke the jurisdiction of  City   Civil   Court,   Ahmedabad   on   the   ground   that  the respondent No.2­Bank is doing business within  a territorial jurisdiction of Ahmedabad and that  the PBG's have been issued by the respondent No.2  at   Ahmedabad,   and   therefore,   part   of   cause   of  action   has   arisen   at   Ahmedabad.   Mr.   Thakore,  Page 16 of 19 HC-NIC Page 16 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER learned senior counsel for the appellant relying  upon clause­(b) and (c) of Section 20 of the Code  has   tried   to   submit   that   the   defendant   No.2  carries   on   business   at   Ahmedabad   and   the   PBG's  have   been   issued   from   Ahmedabad   and   during   the  pendency of the notice of motion they are being  invoked at Ahmedabad. The Court at Ahmedabad has  got jurisdiction to try the suit. It is settled  proposition of law that cause of action consists  of bundle of facts which give rise to institute a  suit within the jurisdiction of particular Court  for   redressal   of   the   legal   injury.   It   is  therefore  necessary  to  consider  the  plaint  as a  whole  to  ascertain   whether  the  facts  as pleaded  in   the   plaint   give   rise   to   cause   of   action   to  file   suit   within   the   jurisdiction   of   the  particular Court. In the case on hand, therefore,  only on the basis of averments made in paragraph  No.34 of the plaint, it cannot be said that the  cause   of   action   has   arisen   within   the   local  jurisdiction of Court at Ahmedabad. The averments  made in the plaint makes it manifestly clear that  there   is   an   agreement   dated   31.03.2011   between  the appellant and respondent No.1 for erection of  ventilation   system.   It   is   also   not   in   dispute  between   the   parties   that   the   said   contract   was  entered into between the parties at Hydrabad. It  further appears from the averments in the plaint  that   dispute   as   regards   settlement   of   accounts  Page 17 of 19 HC-NIC Page 17 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER arose   between   the   parties   for   which   joint  inspection   of   the   site   was   made   an   E­mail  communication has been exchanged. It, therefore,  appears   that   dispute   between   the   parties   is  regarding the settlement of accounts. Hence, only  on   the   basis   of   paragraph   No.34   of   the   plaint  only   because   respondent   No.2­Bank   carries   on  business   within   the   territorial   jurisdiction   of  Court at Ahmedabad to part of cause of action has  arisen   within   the   jurisdiction   of   Court   at  Ahmedabad. Therefore, contention of Mr. Thakkar,  learned   advocate   for   the   appellant   cannot  countenanced.   Admittedly,   the   appellant   has  furnished PBGs issued by respondent No.2­Bank in  terms   of   contract   between   the   appellant   and  respondent   No.1.   This   contention   cannot  countenance the hon'ble Supreme Court in the case  of  South East Asia Shipping Co. Ltd. (supra) has  now   settled   the   controversy   as   held   that   the  issue   or   invocation   of   bank   guarantee   at   a  particular   place   would   not   give   rise   or   confer  jurisdiction within the local limits of the Court  where   the   bank   guarantee   is   issued   or   invoked.  Therefore,   by   invoking   provisions   of   section   20 

(b) and/or (c) merely because defendant No.2­Bank  who   has   issued   the   bank   guarantee   at   Ahmedabad  and   the   bank   was   intimated   about   the   fact   at  Ahmedabad and that the bank guarantee is invoked  at Ahmedabad would not confer jurisdiction on the  Page 18 of 19 HC-NIC Page 18 of 19 Created On Sat Dec 24 00:49:53 IST 2016 C/AO/365/2016 CAV ORDER Court at Ahmedabad by passing clause ­5.1 of the  contract.

28. In view of the above, I am of the view that  the   learned   trial   Judge   has   not   committed   any  error in recording the conclusion that the Court  at Ahmedabad has no jurisdiction and the impugned  order of the learned trial Judge does not suffer  from   any   perversity   or   irregularity   warranting  interference in this appeal. 

29. For the foregoing reasons, this appeal fails  and is hereby dismissed. 

30. In view of the above order, the Appeal from  Order No.366 of 2016 as well as Civil Application  No.9769 of 2016 and Civil Application No.9770 of  2016   do   not   survive   and   stands   disposed   of  accordingly.

(A.G.URAIZEE,J) Manoj Page 19 of 19 HC-NIC Page 19 of 19 Created On Sat Dec 24 00:49:53 IST 2016