The Supreme Court has criticised the practice of forum shopping and shifted a commercial dispute from the Delhi High Court to the Madras High Court, stressing that parties should not select courts arbitrarily when multiple jurisdictions are available.
A bench comprising Justices B V Nagarathna and R Mahadevan approved a transfer petition filed by Sai Maghalakshmi Traders and others, directing that the pending lawsuit be moved to the Madras High Court.
The court observed that the defendants, Sai Maghalakshmi Traders, were based in Chennai, while the plaintiffs, M/s Sri Lakshmi Srinivasa Agro Foods and others, operated primarily from Nelamangala in Karnataka’s Bengaluru Rural district.
Questioning the decision to approach the Delhi High Court, the bench stated, “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,” in its October 28 order.
The court further clarified that the transfer was not ordered merely for convenience, but also addressed concerns surrounding the choice of judicial forum.
