M/S. SONIC SURGICAL vs NATIONAL INSURANCE COMPANY LTD.

The Supreme Court held that for a court to have territorial jurisdiction under Article 226(2), the facts pleaded must have a direct nexus with the cause of action. Citing Adani Exports (AIR 2002 SC 126) and ONGC (1994 AIR SCW 3287), the Court found that the denial of credit in a passbook does not confer jurisdiction if it does not relate to the relief sought. The Court concluded that the complaint filed in 2000, with a cause of action arising in 1999, was not subject to the amended Section 17(2) of the Act, which came into force in 2003, and thus the High Court lacked jurisdiction to grant relief.