Civil Procedure Code. Cause of action. Latest judgment of the Supreme Court 5:11:2020.

SHANTI DEVI ALIAS SHANTI MISHRA vs UNION OF INDIA & ORS. CIVIL APPEAL NO.3630 of 2020 decided on 5 November 2020

Judgment Link: https://main.sci.gov.in/supremecourt/2018/25048/25048_2018_34_1501_24598_Judgement_05-Nov-2020.pdf

  1. Mulla on the Code of Civil Procedure while
    commenting on Section 20 of the Civil Procedure Code
    defined cause of action in following words:-
    “The expression ’cause of action’ has
    acquired 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 action. In the wider
    sense, it means the necessary conditions
    for the maintenance of the suit, including
    not only the infraction of the right, but
    the infraction coupled with the right
    itself. Compendiously the expression means
    every fact by which it would be necessary
    for the plaintiff to prove, if traversed,
    in order to support his right to the
    judgment of the Court……………….”
  2. P. Ramanatha Aiyar in Advanced Law Lexicon, 3rd
    Edition, Volume 1, has defined the cause of action in
    following words:-
    “’Cause of action’ has been defined as
    meaning simply a factual situation the
    19
    existence of which entitles one person to
    obtain from the Court a remedy against
    another person. The phrase has been held
    from earliest time to include every fact
    which is material to be proved to entitle
    the plaintiff to succeed, and every fact
    which a defendant would have a right to
    traverse. “Cause of action” has also been
    taken to mean that particular act on the
    part of the defendant which gives the
    plaintiff his cause of complaint, or the
    subject matter of the grievance founding
    the action, not merely the technical cause
    of action.”
  3. Black’s Law Dictionary defines the cause of
    action in following words:-
    “A group of operative facts giving rise to
    one or more bases for suing; a factual
    situation that entitles one person to
    obtain a remedy in court from another
    person…………”
  4. This Court had occasion to consider the cause of
    action in context of Article 266 of the Constitution
    and has explained the expression “cause of action” in
    large number of cases. We may refer to a Three Judge
    Bench judgment of this Court in Oil and Natural Gas
    Commission Vs. Utpal Kumar Basu and Ors., (1994) 4
    SCC 711 where in paragraphs 5 and 6 following has
    been laid down:-
    “5. Clause (1) of Article 226 begins with
    a non obstante clause — notwithstanding
    20
    anything in Article 32 — and provides that
    every High Court shall have power
    “throughout the territories in relation to
    which it exercises jurisdiction”, to issue
    to any person or authority, including in
    appropriate cases, any Government, “within
    those territories” directions, orders or
    writs, for the enforcement of any of the
    rights conferred by Part III or for any
    other purpose. Under clause (2) of Article
    226 the High Court may exercise its power
    conferred by clause (1) if the cause of
    action, wholly or in part, had arisen
    within the territory over which it
    exercises jurisdiction, notwithstanding
    that the seat of such Government or
    authority or the residence of such person
    is not within those territories. On a
    plain reading of the aforesaid two clauses
    of Article 226 of the Constitution it
    becomes clear that a High Court can
    exercise the power to issue directions,
    orders or writs for the enforcement of any
    of the fundamental rights conferred by
    Part III of the Constitution or for any
    other purpose if the cause of action,
    wholly or in part, had arisen within the
    territories in relation to which it
    exercises jurisdiction, notwithstanding
    that the seat of the Government or
    authority or the residence of the person
    against whom the direction, order or writ
    is issued is not within the said
    territories. In order to confer
    jurisdiction on the High Court of
    Calcutta, NICCO must show that at least a
    part of the cause of action had arisen
    within the territorial jurisdiction of
    21
    that Court. That is at best its case in
    the writ petition.
  5. It is well settled that the expression
    “cause of action” means that bundle of
    facts which the petitioner must prove, if
    traversed, to entitle him to a judgment in
    his favour by the Court. In Chand
    Kour v. Partab Singh [ILR (1889) 16 Cal
    98, 102 : 15 IA 156] Lord Watson said:
    “… the cause of action has no
    relation whatever to the defence
    which may be set up by the
    defendant, nor does it depend upon
    the character of the relief prayed
    for by the plaintiff. It refers
    entirely to the ground set forth
    in the plaint as the cause of
    action, or, in other words, to the
    media upon which the plaintiff
    asks the Court to arrive at a
    conclusion in his favour.”
    Therefore, in determining the objection of
    lack of territorial jurisdiction the court
    must take all the facts pleaded in support
    of the cause of action into consideration
    albeit without embarking upon an enquiry
    as to the correctness or otherwise of the
    said facts. In other words the question
    whether a High Court has territorial
    jurisdiction to entertain a writ petition
    must be answered on the basis of the
    averments made in the petition, the truth
    or otherwise whereof being immaterial. To
    put it differently, the question of
    territorial jurisdiction must be decided
    on the facts pleaded in the petition.
    22
    Therefore, the question whether in the
    instant case the Calcutta High Court had
    jurisdiction to entertain and decide the
    writ petition in question even on the
    facts alleged must depend upon whether the
    averments made in paragraphs 5, 7, 18, 22,
    26 and 43 are sufficient in law to
    establish that a part of the cause of
    action had arisen within the jurisdiction
    of the Calcutta High Court.”
  6. This Court in Navinchandra N. Majithia Vs. State
    of Maharashtra and Ors., (2000) 7 SCC 640 had
    occasion to consider territorial jurisdiction of High
    Court under Article 226(2). Dealing with
    constitutional amendment made in Article 226(2), this
    Court laid down following in paragraph 37:-
    “37. The object of the amendment by
    inserting clause (2) in the article was to
    supersede the decision of the Supreme
    Court in Election Commission v. Saka
    Venkata Subba Rao [AIR 1953 SC 210] and to
    restore the view held by the High Courts
    in the decisions cited above. Thus the
    power conferred on the High Courts under
    Article 226 could as well be exercised by
    any High Court exercising jurisdiction in
    relation to the territories within which
    “the cause of action, wholly or in part,
    arises” and it is no matter that the seat
    of the authority concerned is outside the
    territorial limits of the jurisdiction of
    that High Court. The amendment is thus
    aimed at widening the width of the area
    23
    for reaching the writs issued by different
    High Courts.”
  7. It was further held that the collocation of the
    words “cause of action, wholly or in part, arises”
    seems to have been lifted from Section 20 of the Code
    of Civil Procedure. This Court also quoted the
    definition of “cause of action” given by Lord Esher
    in Read Vs. Brown in paragraph 39. In paragraphs 38,
    39 and 41, following was laid down:-
    “38. “Cause of action” is a phenomenon
    well understood in legal parlance.
    Mohapatra, J. has well delineated the
    import of the said expression by referring
    to the celebrated lexicographies. The
    collocation of the words “cause of action,
    wholly or in part, arises” seems to have
    been lifted from Section 20 of the Code of
    Civil Procedure, which section also deals
    with the jurisdictional aspect of the
    courts. As per that section the suit could
    be instituted in a court within the legal
    limits of whose jurisdiction the “cause of
    action wholly or in part arises”. Judicial
    pronouncements have accorded almost a
    uniform interpretation to the said
    compendious expression even prior to the
    Fifteenth Amendment of the Constitution as
    to mean “the bundle of facts which would
    be necessary for the plaintiff to prove,
    if traversed, in order to support his
    right to the judgment of the court”.
    24
  8. In Read v. Brown [(1888) 22 QBD 128 :
    58 LJQB 120 : 60 LT 250 (CA)] Lord Esher,
    M.R., adopted the definition for the
    phrase “cause of action” that it meant
    “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. It does not
    comprise every piece of evidence
    which is necessary to prove each
    fact, but every fact which is
    necessary to be proved”.
  9. Even in the context of Article 226(2)
    of the Constitution this Court adopted the
    same interpretation to the expression
    “cause of action, wholly or in part,
    arises” vide State of Rajasthan v. Swaika
    Properties [(1985) 3 SCC 217] . A threeJudge Bench of this Court in Oil and
    Natural Gas Commission v. Utpal Kumar
    Basu [(1994) 4 SCC 711] observed that it
    is well settled that the expression “cause
    of action” means that bundle of facts
    which the petitioner must prove, if
    traversed to entitle him to a judgment in
    his favour. Having given such a wide
    interpretation to the expression Ahmadi,
    J. (as the learned Chief Justice then was)
    speaking for M.N. Venkatachaliah, C.J. and
    B.P. Jeevan Reddy, J., utilised the
    opportunity to caution the High Courts
    against transgressing into the
    jurisdiction of the other High Courts
    merely on the ground of some insignificant
    event connected with the cause of action
    taking place within the territorial limits
    25
    of the High Court to which the litigant
    approaches at his own choice or
    convenience. The following are such
    observations. (SCC p. 722, para 12)
    “If an impression gains ground
    that even in cases which fall
    outside the territorial
    jurisdiction of the court, certain
    members of the court would be
    willing to exercise jurisdiction
    on the plea that some event,
    however trivial and unconnected
    with the cause of action had
    occurred within the jurisdiction
    of the said court, litigants would
    seek to abuse the process by
    carrying the cause before such
    members giving rise to avoidable
    suspicion. That would lower the
    dignity of the institution and put
    the entire system to ridicule. We
    are greatly pained to say so but
    if we do not strongly deprecate
    the growing tendency we will, we
    are afraid, be failing in our duty
    to the institution and the system
    of administration of justice. We
    do hope that we will not have
    another occasion to deal with such
    a situation.”
  10. In Kunjan Nair Sivaraman Nair Vs. Narayanan Nair
    and Ors., (2004) 3 SCC 277, this Court explained the
    expression “cause of action” and has quoted with
    26
    approval the cause of action as defined by Halsbury’s
    Laws of England in paragraph 16 and 17:-
    “16. The expression “cause of action” has
    acquired 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 action. In the wider sense, it means
    the necessary conditions for the
    maintenance of the suit, including not
    only the infraction of the right, but the
    infraction coupled with the right itself.
    Compendiously the expression means every
    fact which 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
    to be proved, as distinguished from every
    piece of evidence which is necessary to
    prove each fact, comprises in “cause of
    action”.
  11. In Halsbury’s Laws of England (4th
    Edn.) it has been stated as follows:
    “‘Cause of action’ has been
    defined as meaning simply a
    factual situation the existence of
    which entitles one person to
    obtain from the court a remedy
    against another person. The phrase
    has been held from earliest time
    to include every fact which is
    material to be proved to entitle
    the plaintiff to succeed, and
    every fact which a defendant would
    have a right to traverse. ‘Cause
    27
    of action’ has also been taken to
    mean that particular act on the
    part of the defendant which gives
    the plaintiff his cause of
    complaint, or the subject-matter
    of grievance founding the action,
    not merely the technical cause of
    action.”
  12. Another judgment which needs to be noticed is
    Kusum Ingots & Alloys Ltd. Vs. Union of India and
    Anr., (2004) 6 SCC 254 wherein this Court reiterated
    the meaning of cause of action in paragraph 6. This
    Court reiterated that even if a small fraction of
    cause of action accrues within the jurisdiction of
    the Court, the Court will have jurisdiction in the
    matter. In paragraph 18, following was held:-
    “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 cannot be said to give
    rise to a cause of action which would
    confer jurisdiction on the Court.”
  13. Another judgment which has been relied by learned
    counsel for the appellant is Nawal Kishore Sharma Vs.
    Union of India and Ors., (2014) 9 SCC 329. In the
    above case, the petitioner had filed a writ petition
    seeking various reliefs including disability
    28
    compensation and pecuniary damages. The petitioner
    approached the Patna High Court for grant of various
    reliefs. Although, he was declared unqualified by
    orders issued by the Shipping Department, Government
    of India, Mumbai. This Court held that Patna High
    Court has a jurisdiction to entertain the petition.
    Following was laid down in paragraph 17:-
    “17. We have perused the facts pleaded in
    the writ petition and the documents relied
    upon by the appellant. Indisputably, the
    appellant reported sickness on account of
    various ailments including difficulty in
    breathing. He was referred to hospital.
    Consequently, he was signed off for
    further medical treatment. Finally, the
    respondent permanently declared the
    appellant unfit for sea service due to
    dilated cardiomyopathy (heart muscle
    disease). As a result, the Shipping
    Department of the Government of India
    issued an Order on 12-4-2011 cancelling
    the registration of the appellant as a
    seaman. A copy of the letter was sent to
    the appellant at his native place in Bihar
    where he was staying after he was found
    medically unfit. It further appears that
    the appellant sent a representation from
    his home in the State of Bihar to the
    respondent claiming disability
    compensation. The said representation was
    replied by the respondent, which was
    addressed to him on his home address in
    Gaya, Bihar rejecting his claim for
    disability compensation. It is further
    evident that when the appellant was signed
    off and declared medically unfit, he
    returned back to his home in the district
    of Gaya, Bihar and, thereafter, he made
    29
    all claims and filed representation from
    his home address at Gaya and those letters
    and representations were entertained by
    the respondents and replied and a decision
    on those representations were communicated
    to him on his home address in Bihar.
    Admittedly, the appellant was suffering
    from serious heart muscle disease (dilated
    cardiomyopathy) and breathing problem
    which forced him to stay in his native
    place, wherefrom he had been making all
    correspondence with regard to his
    disability compensation. Prima facie,
    therefore, considering all the facts
    together, a part or fraction of cause of
    action arose within the jurisdiction of
    the Patna High Court where he received a
    letter of refusal disentitling him from
    disability compensation.”
  14. Learned counsel for the appellant has also placed
    reliance on a Division Bench judgment of Patna High
    court in Saryu Singh Vs. The Union of India and Ors.,
    2015(2) PLJR 256. The above was a case where the
    petitioner had claimed the due pensionary benefits
    whose grievance was that payment made to him was less
    payment. In the above context, the Division Bench in
    paragraphs 63, 64 and 66 laid down following:-
    “63. Recently pointed out the Supreme
    Court, in Nawal Kishore Sharma v. Union of
    India, reported in (2014) 9 SCC 329, that
    the question, whether or not cause of
    action, wholly or in part, has arisen
    within the territorial limit of any High
    Court, shall have to be decided in the
    30
    light of the nature and character of the
    proceedings under Article 226 of the
    Constitution of India. In order to
    maintain a writ petition, the petitioner
    has to establish that a legal right
    claimed by him has been infringed by the
    respondents within the territorial limit
    of the Court’s jurisdiction.
  15. In the backdrop of the position of
    law, as discussed above, it needs to be
    noted that the writ petitioner was,
    admittedly, an employee of Coal India
    Limited and as per the terms and
    conditions of his employment, the writ
    petitioner, as an employee, is,
    admittedly, required to be paid his
    pension and pensionery benefits by his
    employer at Patna.
  16. If, therefore, the writ petitioner is
    not paid the sum of money, which is due
    and payable to him as pension and
    pensionery benefits, at Patna, it becomes
    obvious that his right to receive due and
    payable pension and pensionery benefits,
    at Patna, is being denied; consequently
    the infringement of his right or his
    sufferance of injury is at Patna.”
  17. The above judgment of the same High Court was
    relevant in the facts of the present case, which
    judgment although was delivered prior in time, but
    was not noticed by the learned Single Judge as well
    as the Division Bench.

Published by rajdakshalegal

Senior Advocate, High Court of Karnataka, Bengaluru

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