P.R. TRANSPORT AGENCY V. UNION OF INDIA, AIR 2006 ALL 23
FACTS
Bharat Coking Coal (BCC) conducted an e-auction for coal allocation.
P.R. Transport Agency (PRTA) won the bid for 4000 metric tons of coal at Rs. 1,625/- per metric ton.
BCC communicated bid acceptance to PRTA via email to PRTA's address.
PRTA deposited Rs. 81.12 Lakhs as payment for the coal as per the terms.
Despite payment, PRTA failed to deliver the coal.
BCC, via email, cancelled PRTA's cheque deposit citing technical issues, without disclosing that another bidder's higher bid was not considered due to software malfunction.
ISSUES
Does the court's territorial jurisdiction extend to entertain PRTA's petition?
Does the ouster clause in the tender agreement preclude the court's writ jurisdiction?
CONTENTIONS
PRTA argues that the court has jurisdiction as the communication regarding bid acceptance was received in Uttar Pradesh (U.P.), where PRTA operates.
BCC contends that the ouster clause limits the court's jurisdiction, including its writ jurisdiction.
COURT REASONING
The court's jurisdiction is analyzed in light of Section 13(3) of the Information Technology Act, which considers electronic communications intended for specific addresses.
Since the emails were directed to locations within U.P. (Chamauli and Varanasi), the court asserts jurisdiction as part of the cause of action arose within U.P.
The ouster clause's applicability is assessed concerning its effect on the court's writ jurisdiction under Article 226 of the Constitution.
While ouster clauses may restrict civil court jurisdiction, they cannot extend to the High Court's writ jurisdiction, unless expressly provided by law.
JUDGEMENT
The court confirms its jurisdiction, considering the communication's receipt in U.P.
BCC's cancellation of the bid without affording PRTA due process violated principles of natural justice.
BCC is directed to fulfill its obligation by delivering the coal to PRTA as per the bid terms.