Delhi High Court
Meghana T.V vs Union Of India on 24 July, 2024
Author: Tushar Rao Gedela
Bench: Tushar Rao Gedela
$~2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ LPA 624/2024 & C.M.Nos.40236-40237/2024
MEGHANA T.V .....Appellant
Through: Mr.Rakesh Kumar with Ms.Deepali
Aggarwal, Advocates.
versus
UNION OF INDIA .....Respondent
Through: Ms.Rukhmini Bobde, CGSC with
Mr.Husain Taqvi, Ms.Soumya
Priyadarshinee, Mr.Amit Srivastava,
Mr.Amlaan Kumar and Mr.Vinayak
Aren, Advocates.
% Date of Decision: 24th July, 2024
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
JUDGMENT
MANMOHAN, ACJ : (ORAL)
1. Present appeal has been filed challenging the impugned judgment
dated 31st May, 2024 passed by the learned Single Judge in W.P.(C)
No.6726/2024, whereby the Appellants' writ petition seeking initiation of
investigation into the affairs of M/s Vikram Structures Pvt. Ltd. (VSPL) and
its related parties by the SFIO in terms of order dated 07th December, 2023
passed by the National Company Law Tribunal (NCLT), Bengaluru in CP.
No.14/BB/2022 was dismissed on the ground of lack of territorial
jurisdiction.
Signing Date:29.07.2024
18:10:48
2. Learned counsel for the Appellant states that the learned Single Judge
failed to note paragraph 19(d) of the order dated 07th December, 2023
whereby the NCLT, Bengaluru directed the Secretary, Ministry of Corporate
Affairs, Government of India to investigate into the affairs of VSPL and its
related parties by appointing Inspector(s) to carry out the investigation by
following the due procedure. He states that the cause of action for the writ
petition is solely against inaction by the Ministry of Corporate Affairs,
Government of India and failure to abide by the directions of the said order,
which arises within the territorial jurisdiction of this Court.
3. Per contra, learned counsel for the Union of India states that under
Section 213(b) of the Companies Act, 2013, the Central Government has
ordered an investigation into the affairs of the M/s Vikram Structures Private
Limited.
4. The Five Judges Bench of this Court in Sterling Agro Industries Ltd.
vs. Union of India & Ors., 2011 SCC OnLine Del 3162 has held that 'while
entertaining a writ petition, the doctrine of forum conveniens and the nature
of cause of action are required to be scrutinised by the High Court
depending upon the factual matrix of each case in view of what has been
stated in Ambica Industries vs. CCE (2007) 213 ELT 323 and Union of India
vs. Adani Exports Ltd. (2002) 1 SCC 567.
5. This Court finds that in the present case the entire cause of action with
regard to the alleged acts of cheating, misappropriation of funds, defrauding
of the investors and siphoning of the funds on the part of the VSPL and its
directors, as alleged, has arisen in the State of Karnataka.
6. The subject land in question is situated in Bengaluru, Karnataka and
all the agreements under consideration, including the Joint Development
Signing Date:29.07.2024
18:10:48
Agreement, Supplementary Agreement, Lease Deed, etc. have been
executed and stamped at Karnataka.
7. Furthermore, the ongoing litigation in respect of the subject property
is taking place at Courts in Karnataka. No documents have been placed on
record by the Appellant to substantiate the contention that the seat or the
main head office of VSPL is located in Delhi.
8. This Court is of the view that the foundation for approaching the
Ministry of Corporate Affairs, Government of India is the order passed by
NCLT, Bengaluru. Moreover as the registered office of VSPL is situated in
the state of Karnataka, the High Court which would have the jurisdiction to
deal with the issues arising out of the order passed by NCLT, Bengaluru
would be the Karnataka High Court.
9. In our opinion, the learned Single Judge has rightly refused to
exercise its discretionary jurisdiction by invoking the Doctrine of Forum
Conveniens and directed the Appellant to approach the Karnataka High
Court instead.
10. Keeping in view the aforesaid, present appeal along with the
applications is dismissed.
ACTING CHIEF JUSTICE
TUSHAR RAO GEDELA, J
JULY 24, 2024
KA
Signing Date:29.07.2024
18:10:48
