Perception of one HC being better suited to hear disputes 'misguided and erroneous': SC

New Delhi: The Supreme Court has transferred a commercial intellectual property suit from the Delhi High Court to the Madras High Court, observing that the choice of a forum cannot be driven by a perception that one High Court is better suited to adjudicate a particular category of disputes.

A Bench of Justices B.V. Nagarathna and R. Mahadevan allowed a transfer petition filed by Sai Maghalakshmi Traders, Sri Lakshmi Srinivasa Enterprises, and M.P.K. Traders against M/s Sri Lakshmi Srinivasa Agro Foods and SLS Agro Ventures, seeking the transfer of a commercial suit instituted by the latter before the Delhi High Court.

In its order, the apex court recorded that the petitioners, who are defendants in the suit, carry on business in Chennai, while the plaintiffs have their principal place of business at Nelamangala in Karnataka's Bengaluru Rural district.

Questioning the decision to institute the proceedings before the Delhi High Court, the Justice Nagarathna-led Bench observed: "We fail to understand as to why the respondents/plaintiffs have filed the suit before the Delhi High Court when both the parties are residing in the neighbouring States of Karnataka and Tamil Nadu and the Madras High Court also has original jurisdiction to entertain the suit."

It observed that the issue went beyond the convenience of the litigating parties and involved the need to discourage forum shopping and perceptions of superiority among High Courts.

"We wish to observe that it is not merely concerns of convenience that animate the need for transfer of proceedings in the instant case," the Supreme Court said.

It further said that the perception of a particular High Court being better suited to hear a specific category of disputes was "entirely misguided and erroneous".

"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.

The Supreme Court also highlighted that, ordinarily, where the parties, the genesis of the dispute and its factual locus are based in a particular location, courts in that location would be better placed to understand the nuances of the case.

Finding that the interests of justice would be served by transferring the proceedings, the top court said that the parties were carrying on their respective businesses in neighbouring states and that the transfer would facilitate expeditious disposal, keeping in view all practical aspects.

"Accordingly, the Transfer Petition is allowed and the case viz., CS(COMM) 625/2026 on the file of the High Court of Delhi at New Delhi is transferred to the High Court of Judicature at Madras," the order stated.

It also clarified that the respondents would be at liberty to appear before the transferee court either in person or through video conferencing.

The transfer petition had earlier come up before the apex court on August 10, when a Bench of Justice Sanjay Kumar issued notice to the respondents and stayed further proceedings in the commercial suit pending before the Delhi High Court.

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