Supreme Court Rejects High Court Superiority Perception, Transfers Commercial Suit To Madras

The Supreme Court has transferred a commercial intellectual property suit from the Delhi High Court to the Madras High Court.

The Bench of Justices BV Nagarathna and R Mahadevan approved a petition filed by Sai Maghalakshmi Traders, Sri Lakshmi Srinivasa Enterprises and MPK Traders.

The petitioners challenged the decision to file the commercial suit in Delhi, given that they operate from Chennai. The plaintiffs, M/s Sri Lakshmi Srinivasa Agro Foods and SLS Agro Ventures, have their principal place of business in Nelamangala, Karnataka.

The Bench questioned why the plaintiffs approached the Delhi High Court when the parties operate in neighbouring states, and the Madras High Court also has original jurisdiction over the dispute.

The court stressed that the transfer involved more than the convenience of the parties. It warned against forum shopping and rejected the belief that certain High Courts hold an advantage in handling particular categories of disputes.

Describing such perceptions as ‘entirely misguided and erroneous’, the Bench said territorial jurisdiction alone could not justify forum shopping or establish a hierarchy among High Courts.

The Supreme Court observed that courts located where the parties operate, and where the dispute originated, can better understand the relevant facts.

It concluded that transferring the case would support its timely disposal. The court also allowed the respondents to appear before the Madras High Court either personally or through video conferencing.

The order transferred commercial suit CS(COMM) 625/2026 from the Delhi High Court to the Madras High Court.

The matter had earlier reached the Supreme Court on August 10. Justice Sanjay Kumar had issued notice to the respondents and stayed further proceedings before the Delhi High Court.

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