The Supreme Court has transferred a commercial suit from the Delhi High Court to the Madras High Court, holding that the availability of territorial jurisdiction in more than one court cannot by itself be used to justify forum shopping.
A Bench of Justice B V Nagarathna and Justice R Mahadevan allowed a transfer petition filed by Sai Maghalakshmi Traders and others, the defendants in the suit. The Court directed that the case be sent to the Madras High Court, where the respondents may appear either in person or through video conferencing.
“The mere existence of territorial jurisdiction in various courts cannot on its own become justification for forum shopping and cannot result in the perpetuation of notions of a hierarchy among the high courts of this country,” the Bench said in its order dated October 28.
No High Court Better Suited Than Another
The Court acknowledged that several High Courts may have jurisdiction over the same matter, particularly in intellectual property disputes. However, it said any perception that a particular High Court is better suited to hear a certain type of dispute is entirely misguided and erroneous.
The Bench added that when the parties, the origin of a dispute and its factual setting are all tied to one location, the courts of that location are ordinarily best placed to understand the nuances of the case. It clarified that the need for transfer in this matter was not based on convenience alone.
Parties Based in Neighbouring Southern States
The suit was filed before the Delhi High Court by M/s Sri Lakshmi Srinivasa Agro Foods and another against Sai Maghalakshmi Traders and others.
The Court noted that the defendants are based in Chennai, Tamil Nadu, while the plaintiffs have their principal place of business in Nelmangala, in Karnataka’s Bengaluru Rural District.
Questioning the choice of forum, the Bench said it could not understand why the plaintiffs approached the Delhi High Court when both sides reside in the neighbouring states of Karnataka and Tamil Nadu, and the Madras High Court also has original jurisdiction to hear the suit.
