M/S SOUTH EAST ASIA SHIPPING CO. LTD. vs M/S NAV BHARAT ENTERPRISES PVT. LTD. & ORS.

The Supreme Court held that the Delhi High Court lacked jurisdiction to entertain the suit for perpetual injunction regarding a bank guarantee executed in Delhi, as the contract was executed and performance was to occur in Bombay. The Court clarified that a cause of action must arise from facts within the jurisdiction of the court, and merely executing a bank guarantee in Delhi does not confer jurisdiction if the contract's obligations are to be performed elsewhere. The appeal was allowed, and the order of the Division Bench was set aside, directing the plaint to be returned for presentation to the proper court.