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The Punjab and Haryana High Court by single Bench of Justice Alka Sarin imposed an exemplary cost of Rs. 1,00,000/- on the directors of Mumbai based Company, who had appeared before it against disqualification order passed by competent authority against them, only to get benefits of a precedent set by the High Court, without there being territorial jurisdiction. Neither the petitioners are residents of Punjab and Haryana nor Union Territory of Chandigarh nor the said Company registered therein.
Facts
The petitioners were disqualified from acting as Directors in a Mumbai based Company by the competent authority. The Counsel appearing for Respondent pointed out that the matter was beyond its jurisdiction and the registrar of Companies, Punjab and Chandigarh have been impeded as a party only to surreptitiously create jurisdiction of this Court. However, the Registrar of Companies, Punjab, and Chandigarh has no connection with the present case and this Court has no jurisdiction to entertain the present writ petition as the jurisdiction of High Court is bounded to the territorial jurisdiction of the state/states of which the High Court is.
Respondent contended that:
“There is no ground whatsoever made out for invoking the jurisdiction of this Court under Articles 226/227 of the Constitution of India inasmuch as neither the petitioners are residents of Punjab, Haryana or UT Chandigarh nor is the company qua which the petitioners were disqualified to act as Directors, registered with the Registrar of Companies, Punjab and Chandigarh.”
Court’s reasoning:
The Court stated that the Petitioner is unable to show how the present writ petition was maintainable before Punjab Haryana High Court.
“There is also no averment in the present writ petition as to how any part of the cause of action had arisen within the territorial jurisdiction of this Court.”
Court further said that the present petition is filed by the petitioners only to gain the benefit of the interim order passed by this court. The filing of the present writ petition before this court doesn’t seem bonafide.
“The present writ petition seems to have been filed only to gain the benefit of the interim order (Annexure- 7) passed by this Court in CWP. No.24977 of 2017 ‘Gurdeep Singh & Ors. Vs. Union of India & Anr.’ and other similar cases through the initiation of the writ proceedings before this High Court was clearly unsustainable and abuse of jurisdiction. The filing of the present writ petition before this High Court was not bonafide.”
The Court held that the present Writ Petition before this Court was clearly unsustainable and abuse of jurisdiction, the Court dismissed the writ petition with the exemplary cost of Rs. 1,00,000/- to be deposited by the Petitioners with PM Care’s Fund.
Case Name:
Vijay Govardhandas Kalantari & Anr. v. Union of India
Counsel for Petitioner: Advocate Mukul Goyal
Counsel for Respondent: Bhuwan Vats
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