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4. ATUL opposed the petitions. In addition of resisting the petitions on merits, a preliminary object was raised as regards Court's territorial jurisdiction to entertain and try the petitions. It was alleged that as per the terms of the contract arrived at between DIL and ATUL only the Courts situate at Valsad, Gujarat have jurisdiction to adjudicate upon the matter. It was alleged that the entire cause of action had arisen in Valsad, Gujarat. Major negotiations and discussions between DIL and ATUL relating to the basic agreements for erection and commissioning of 1B MW TG. Set took place in Valsad. The agreements were signed by DIL and ATUL at Valsad. The agreements were to be performed Entirely at Valsad. Work was to be carried out at Valsad therefore, no cause of action had arisen out side Valsad. Even as per Memorandum of Understanding and the minutes of meeting dated 19.2.1997 conditions of the original contract remained unaltered and formed a part of new agreement between ATUL, State Bank of India and DIL. As such only Courts situate at Valsad, Gujarat have jurisdiction to adjudicate upon the matter.

"Disputes of any nature that may arise in connection with the execution of this agreement, shall be governed by the Laws of India subject to the jurisdiction of Courts situate in Valsad, Gujarat."

8. The last para under Acceptance of Conditions, inter alia, says :-

"That the Agreement shall be deemed to have been entered into at Valsad and all causes of action in relation to the agreement shall, therefore, be deemed to have arisen within the jurisdiction of the Court of Valsad District (Gujarat State) only."

11. Dr. A.M. Singhvi appearing for ATUL contended that no part of cause of action has arisen in Delhi and moreover intention of the parties have to be gathered from the terms of the agreement. The mere fact that the words "alone", "exclusive" or the like are not mentioned in Clause 15, are not used still the intention can be gathered from arbitration clause and the penultimate clause, which are part of the same agreement. Arbitration clause clearly provides that the venue of all arbitration shall be at Valsad and the penultimate clause state that all causes of action in relation to agreement shall be deemed to have arisen within the Court at Valsad District only. The words "the venue of all arbitration shall be Valsad," in the arbitration clause and the words "subject to jurisdiction of Courts situate in Valsad, Gujarat" in the clause pertaining to Courts jurisdiction by necessary implication excludes jurisdiction of any other Court and the parties always intended that Courts at Valsad, Gujarat alone will have jurisdiction.

13. In the instant case also on the admitted facts, the contracts between DIL and ATUL were at Valsad, Gujarat. Performance of obligations and liabilities under the contract were also required to be done wholly at Valsad, Gujarat, namely, the erection and commissioning of turbine generator set. The parties, namely, ATUL and DIL had also agreed that the disputes of any nature that may arise in connection with the execution of the agreement shall be governed by the Laws of India subject to jurisdiction of Courts situate in Valsad, Gujarat; the venue for arbitration in case of dispute between DIL and ATUL has to be Valsad. It is also admitted position that in furtherance of the execution of the contracts at Valsad, the bank guarantees were executed at Delhi and were transmitted to ATUL having its head office at Valsad, Gujarat: The mere fact that the bank guarantees were executed in Delhi and were transmitted from Delhi, in terms of the judgement of Supreme Court in South East Asia Shipping Company Limited's case (supra), it will not constitute a cause of action to DIL to lay its petitions on the original side of this Court. Judgment in South Asia Shipping Company Limited's case (supra) applies in full force to the facts of the present case.