Khushi Gupta
Published on: June 8, 2022 at 16:58 IST
The Delhi High Court recently issued directions on the Jurisdiction of District Courts’ to hear Intellectual Property Rights (IPR) suits, making it clear that litigants and lawyers cannot escape the provisions of the Commercial Courts Act (CCA) by valuing suits below ₹3 lakhs.
The Court held that, the suit would mandatorily have to be listed before the District Judge (Commercial) first, instead of the District Judge (Non-Commercial), in order to determine whether such valuation is arbitrary or has been deliberately undervalued”.
The present issue arose after it came to the Court’s attention there were a large number of IPR matters in Delhi valued below ₹3 lakh, which were placed before the Additional District Judge (non-commercial) for adjudication.
The Court also took a dim view of litigants deliberately valuing the relief in suits below ₹3 lakhs, in order to escape the rigors of the CCA or indulge in forum shopping or bench hunting.
“It is thus clear to this Court that while all IPR disputes irrespective of their ‘specified value’ may not invoke the provisions of the CCA, there ought to be a preliminary exercise required to confirm that the valuation of such suits has not been done arbitrarily.”
“This may be done on the judicial side, as per the SCMSC. Such examination by the Commercial Court is essential so as to obviate any attempts of forum shopping,” it held.
Before issuing its directions, the Court came to the conclusion that, “In view of the above analysis and legal position, since IPR suits have to be instituted in the District Courts “having jurisdiction”, for the territory of Delhi, it is held that the District Judges notified as Commercial Courts which have subject matter jurisdiction under the CCA, would be the District Courts “having jurisdiction.”