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2022 (10) TMI 635 - HC - Money LaunderingTerritorial jurisdiction to entertain the writ petition under Article 226 (2) of the Constitution of India - Criminal conspiracy - defrauding and cheating the Consortium of Banks led by the Central Bank of India - in furtherance of the criminal conspiracy induced the Central Bank of India, Corporate Finance Branch, Chennai by submitting fraudulent Letter of Credit documents without any physical movement of goods and unlawfully availed credit facilities for which they were not eligible. Whether this court is having territorial jurisdiction to entertain the writ petition under Article 226 (2) of the Constitution of India? - HELD THAT:- The High Court of Madras in A. John Kennedy and Ors. v. Joint Director, Directorate of Enforcement, Cochin Zonal Office [2020 (12) TMI 1351 - MADRAS HIGH COURT] extracting the judgment of the Hon’ble Apex Court in KUSUM INGOTS & ALLOYS LTD. VERSUS UNION OF INDIA [2004 (4) TMI 342 - SUPREME COURT] observed that, even if a small part of cause of action arises within the territorial jurisdiction of the High Court, the same by itself may not be a determinative factor to decide the matter on merit. All these cases would show how the legal position under Article 226(2) is evolving, how the concept of cause of action is incorporated in Article 226, the history behind it and though initially it is stated that even if a small fraction of the cause of action arises within the jurisdiction of the Court, that Court would have territorial jurisdiction to entertain the suit/petition to the extent that the petition is not maintainable before the Court where a small part of cause of action had arisen and the major part of cause of action shall be considered for applicability of territorial jurisdiction of the Court and had taken a full circle in observing that the concept of part of cause of action is irrelevant and had no application in criminal proceedings and only that High Court could entertain a prayer for quashing which has the supervisory jurisdiction over the jurisdictional court which is monitoring the investigation as per Cr.P.C. The issue whether a writ petition under Article 226 is maintainable against a Criminal Court situated outside the territorial jurisdiction of the Court as well as whether the Court could judicially review the action of the Magistrate in taking cognizance of the offence located outside the territorial jurisdiction of the court is considered by the High Court of Kerala in Augustine Babu P.M. Vs. Mohd. Samiur Rahman Ansari and Ors. [2017 (8) TMI 1680 - KERALA HIGH COURT]. It held that There cannot be any dispute that the complaint before the Coimbatore court and taking cognizance of the same by the said court cannot be challenged under S.482 of the Cr.P.C or under Art.227 of the Constitution of India, before this Court. The only contention raised is that a Writ Petition under Article 226 will lie, in view of clause (2) thereof, as part of the cause of action in the transaction regarding issuance of the cheque, its dishonour etc., arose in Kerala. Thus, even though a part of cause of action arises in this State, as the investigation was culminated in filing the charge sheet and the case is also taken cognizance by a competent court situated outside the territorial limits of this State, this Court cannot exercise its jurisdiction to entertain the writ petition under Article 226(2) of the Constitution of India. Whether taking cognizance of the offence under PMLA by the Principle Session Judge, Chennai in CC 1 of 2021 against the petitioner is in accordance with law? - HELD THAT:- Since the question of territorial jurisdiction is answered against the petitioner, it is considered not appropriate to deal with the merits of the matter to answer this question. The writ petition is dismissed.
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