Law:

Section:

Section 20 of the Code of Civil Procedure, 1908, read with clause 12 of the Letters Patent - Place of suing - Other suits to be instituted where defendants reside or cause of action arises - Defendant was liable to pay tax dues as adjudicated by income-tax authority in respect of transaction under Wet Lease Agreement entered into between plaintiff and defendant - On account of express provisions of Income- tax Act, plaintiff was obliged to pay requisite amounts of tax for and on behalf of defendant and claim reimbursement thereof - On account of certain acts under Wet Lease Agreement, which were performed by defendant within jurisdiction of Bombay High Court, liability of defendant to pay income-tax under provisions of Income- tax Act had arisen and having failed to discharge that liability, amount became recoverable from plaintiff by operation of law - Plaintiff filed suit against defendant before Bombay High Court on 20-7-2001 for recovering amount paid by it to income-tax authorities on account of tax liabilities of defendant - Plaintiff also moved a formal application for leave under clause 12 of Letters Patent and same was granted on 8-9-2001 - Thereafter, suit came to be numbered on 13-9-2001 and plaint was served on defendant - Whether cause of action to file suit had arisen in Mumbai and, therefore, Bombay High Court had jurisdiction to grant leave to institute suit under clause 12 - Held, yes - Whether filing of suit prior to obtaining leave under clause 12 could not be said to be improper presentation, since before numbering of suit, High Court had already granted leave under clause 12 - Held, yes - Whether merely because some inconvenience would be caused to defendant, that by itself could not be a ground for invoking doctrine of 'Forum Convenience' of defendant - Held, yes FACTS The plaintiff filed a suit against the defendant before the High Court of Bombay on 20-7-2001 for the relief that the defendant be ordered to pay to it certain amount which had been paid by it on demand to the income-tax authorities and amount which might be demanded from it by the income-tax authorities on account of the tax liabilities of the defendant for transactions…

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