The correct answer is: C. Both 1 and 2
The Punjab and Haryana High Court was established in 1966, after the partition of Punjab into two states, Punjab and Haryana. The High Court is located in Chandigarh, which is the joint capital of Punjab and Haryana. The High Court has jurisdiction over both states, as well as the Union Territory of Chandigarh.
Statement 1 is correct. The High Court of Haryana was shifted from Shimla to Chandigarh in 1966.
Statement 2 is also correct. The Punjab and Haryana High Court is not the common High Court for the states of Punjab, Haryana and Union Territory of Chandigarh. The High Court of Punjab and Haryana is the common High Court for the states of Punjab and Haryana, but not for the Union Territory of Chandigarh. The Union Territory of Chandigarh has its own High Court, the High Court of Chandigarh.
Therefore, both statements 1 and 2 are correct.