CARIBJET INC Vs. AIR INDIA LTD

JUDGEMENT

(1.) This appeal is directed against the order of Khanwilkar, J. dismissing a Chamber Summons for revocation of the leave granted under Clause 12 of the Letters Patent in favour of the plaintiff. The plaintiff has filed the suit for recovery of a sum of Rs. 5 crores which has been paid by the plaintiff on demand of the Income Tax Authorities on account of the tax liability of the defendant as also for recovery of Rs. 96,16,74,416/- and Rs. 132,6521,397/- being the balance amount which has been demanded from the plaintiff by the income Tax Authorities as the plaintiff is required to pay this amount on account of the tax liability of the defendant.

(2.) The plaintiff presented the suit before the authorised officer of this Court on 20th July, 2001 and formal application for leave under Clause 12 was moved which was granted on 8th September, 2001. Thereafter the suit came to be numbered on 13th September, 2001 and plaint was served on the defendant on 1st October, 2001. Upon service, the defendant entered appearance and filed chamber Summons No. 390 of 2003 for revocation of the leave under Clause 12 which came to be dismissed by the learned single Judge by order under appeal.

(3.) Mr. Tulzapurkar appearing in support of the appeal raised two submissions before us. First, it is argued, that no part of cause of action has arisen in Mumbai and, therefore, this Court has no jurisdiction and leave under Clause 12 could not have been granted. Secondly, it is contended that the plaintiff has first lodged the suit on 24th July, 2001 without obtaining prior leave under Clause 12 of the Letters Patent; whereas leave has been granted subsequently on 8th september, 2001 which was impermissible and consequently the order is void and without jurisdiction.