Supreme Court Allows Union of India's Appeal in Administrative Tribunal Transfer Case Due to Lack of Territorial Jurisdiction in High Court. The High Court of Uttarakhand Erred in Entertaining Writ Petition as No Cause of Action Arose Within Its Territory Under Article 226 of Constitution, and Transfer Order Under Section 25 of Administrative Tribunals Act, 1985 Was Valid.

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Case Note & Summary

The dispute originated from an Original Application filed by a writ petitioner before the Nainital Circuit Bench of the Central Administrative Tribunal, challenging the Central Government's policy on empanelment for Joint Secretary posts and the contractual appointment system. The Union of India filed a transfer application under Section 25 of the Administrative Tribunals Act, 1985, seeking transfer of the OA to the Principal Bench in New Delhi, which was granted by the Chairman. The writ petitioner challenged this transfer order before the High Court of Uttarakhand, which allowed the writ petition and set aside the transfer order, holding that there was no legal requirement for policy decisions to be challenged only before the Principal Bench. The Union of India appealed to the Supreme Court. The core legal issues involved the territorial jurisdiction of the High Court under Article 226 of the Constitution and the validity of the transfer order under Section 25 of the Administrative Tribunals Act, 1985. The Union of India argued that the High Court lacked territorial jurisdiction as no cause of action arose in Uttarakhand, relying on precedents including L. Chandra Kumar v. Union of India and Union of India v. Alapan Bandyopadhyay. The writ petitioner contended that part cause of action arose in Uttarakhand due to the impact of the policy decision on eligible candidates in the state. The Supreme Court analyzed the provisions and precedents, emphasizing that the High Court's jurisdiction depends on where the cause of action arises. The Court held that the High Court of Uttarakhand erred in entertaining the writ petition as no cause of action arose within its territory, following the principles established in the cited cases. Additionally, the Court upheld the Chairman's transfer order under Section 25, noting the nationwide repercussions of the policy decision. The final decision allowed the appeal, set aside the High Court's judgment, and restored the Chairman's transfer order, directing the OA to be heard by the Principal Bench in New Delhi.

Headnote

A) Administrative Law - Central Administrative Tribunal - Transfer of Cases - Section 25 Administrative Tribunals Act, 1985 - The Chairman of CAT transferred an Original Application challenging empanelment policy for Joint Secretary posts from Nainital Circuit Bench to Principal Bench, New Delhi, citing nationwide repercussions - The Supreme Court examined the Chairman's discretionary power under Section 25 and held that the transfer was justified as the matter involved policy decisions affecting Central Government functioning - Held that the Chairman's order was proper and the High Court erred in interfering with it (Paras 3.2, 3.5).

B) Constitutional Law - Writ Jurisdiction - Territorial Jurisdiction - Article 226 Constitution of India - The High Court of Uttarakhand entertained a writ petition challenging the CAT Chairman's transfer order - The Supreme Court considered whether part cause of action arose in Uttarakhand and applied precedents on High Court jurisdiction over tribunal orders - Held that the High Court lacked territorial jurisdiction as no cause of action arose within its territory, following L. Chandra Kumar and Union of India v. Alapan Bandyopadhyay (Paras 3.4, 4, 4.1).

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Issue of Consideration

Whether the High Court of Uttarakhand had territorial jurisdiction to entertain the writ petition challenging the order of the Chairman, Central Administrative Tribunal transferring the Original Application from Nainital Circuit Bench to Principal Bench, New Delhi, and the validity of the transfer order under Section 25 of the Administrative Tribunals Act, 1985.

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Final Decision

Supreme Court allowed the appeal, set aside the impugned judgment and order of the High Court, and restored the order dated 04.12.2020 passed by the Chairman, Central Administrative Tribunal transferring the Original Application to the Principal Bench, New Delhi.

Law Points

  • Territorial jurisdiction of High Court under Article 226 of Constitution of India
  • Powers of Chairman of Central Administrative Tribunal under Section 25 of Administrative Tribunals Act
  • 1985
  • Cause of action for writ petitions
  • Transfer of cases between benches of tribunal
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Case Details

2023 LawText (SC) (3) 105

CIVIL APPEAL NO. /2023 (@ SPECIAL LEAVE PETITION (C) NO. 530 / 2022)

2023-03-03

M.R. Shah, J.

Shri Tushar Mehta, learned Solicitor General, Shri Shyam Divan, learned Senior Advocate

Union of India

Sanjiv Chaturvedi & Ors.

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Nature of Litigation

Appeal against High Court judgment setting aside transfer order of Original Application by Central Administrative Tribunal

Remedy Sought

Union of India seeking reversal of High Court order and restoration of transfer order

Filing Reason

Dissatisfaction with High Court's decision on jurisdiction and transfer validity

Previous Decisions

High Court allowed writ petition and set aside transfer order dated 04.12.2020; Chairman of CAT ordered transfer on 04.12.2020

Issues

Whether the High Court of Uttarakhand had territorial jurisdiction to entertain the writ petition Whether the transfer order under Section 25 of the Administrative Tribunals Act, 1985 was valid

Submissions/Arguments

Union of India argued High Court lacked territorial jurisdiction as no cause of action arose in Uttarakhand Writ petitioner argued part cause of action arose in Uttarakhand due to impact of policy decision

Ratio Decidendi

The High Court of Uttarakhand lacked territorial jurisdiction to entertain the writ petition as no cause of action arose within its territory under Article 226 of the Constitution, and the Chairman's transfer order under Section 25 of the Administrative Tribunals Act, 1985 was valid given the nationwide repercussions of the policy decision.

Judgment Excerpts

A perusal of the prayer in the O.A. discloses that the very procedure for empanelment for the post of Joint Secretary is sought to be assailed all decisions of Tribunals created under Article 323A and Article 323B of the Constitution will be subject to the scrutiny before a Division Bench of the High Court within whose jurisdiction the concerned Tribunal falls

Procedural History

Original Application filed before Nainital Circuit Bench, CAT; Transfer application filed by Union of India under Section 25; Transfer ordered by Chairman on 04.12.2020; Writ petition filed before High Court of Uttarakhand; High Court allowed writ petition and set aside transfer order on 23.10.2021; Appeal filed by Union of India to Supreme Court.

Acts & Sections

  • Administrative Tribunals Act, 1985: Section 25
  • Constitution of India: Article 226
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