| Content Provider | Supreme Court of India |
|---|---|
| e-ISSN | 30484839 |
| Language | English |
| Access Restriction | NDLI |
| Subject Keyword | Territorial jurisdiction of High Court to entertain the suit |
| Content Type | Text |
| Resource Type | Law Judgement |
| Jurisdiction | India |
| Case Type | Appeal |
| Court | Supreme Court of India |
| Disposal Nature | Appeal Dismissed |
| Headnote | Jurisdiction: Territorial jurisdiction – Territorial jurisdictionof High Court to entertain the suit – Plaintiffs-resident nationals ofDubai, have share holding in defendant No. 2 Company,incorporated in Dubai – Plaintiffs holding 34% of shares anddefendant Nos. 3,4 and 7 holding 66% shares in the defendant No.2 Company – Defendant Nos. 3-7 also subscribers to 6.16% sharecapital of defendant No. 1/Indian Company – Plaintiffs filed suitfor declaration in the High Court of Madras, as a derivative actionon behalf of defendant No. 2, purportedly to protect and declarethe beneficial interest in the shares available with defendant no. 1standing in the name of defendant Nos. 3-7 – Single Judge of theHigh Court held that the High Court had the jurisdiction to entertainthe suit, however, the Division Bench held that the suit in the HighCourt of Madras was not maintainable – On appeal, held: When adispute is between the shareholder and the company with respect tothe shares held in another, the mere existence of registered office ofthe subsequent company is not a factor to clothe jurisdiction – Inreality, the dispute is between the plaintiffs and defendant nos. 3-7,all residents of Dubai – Even defendant No. 2 whose beneficialinterest is claimed was incorporated in Dubai – Merely, becausethe dispute is about those shares issued by Indian Company, wouldnot lead to the conclusion that cause of action has arisen in India –Defendant No. 1 has nothing to do with the dispute – Relief ofdeclaration sought is that defendant Nos. 3-7 are not the real ownersof such shares and its beneficial owner is defendant No. 2 – Such adispute would not bring jurisdiction of Chennai courts simplybecause defendant No. 1 has its registered office in Chennai – While considering the territorial jurisdiction over a suit initiated to protectthe beneficial interest, the issue qua the existence of such an interestcan only be decided on the condition that the same is amenable tosuch a jurisdiction – Defendant no. 2 is not amenable to thejurisdiction of the Madras High Court – Furthermore, the court inDubai would be more convenient forum to decide the dispute betweenthe parties who are residents of Dubai and which revolves arounddefendant no. 2, Company registered in Dubai – Suit – Cause ofaction. |
| Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
| Neutral Citation | 2018 INSC 1100 |
| Petitioner | Ahmed Abdulla Ahmed Al Ghurair (through Their Power Of Attorney Holder Mr. Bartholomew Kamya) & Anr. |
| Respondent | Star Health And Allied Insurance Company Limited & Ors. |
| SCR | [2018] 13 S.C.R. 670 |
| Judgement Date | 2018-11-26 |
| Case Number | 9786 |
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