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2013 Supreme(Mad) 1767
High Court of Judicature at Madras
VINOD K. SHARMA, J.
Petitioner
Versus
Respondent
O.A. Nos. 116 & 117 of 2013
Decided On : 29-04-2013
The court clarified the scope of cause of action and emphasized the necessity for a cause of action to arise within the court's territorial jurisdiction to invoke its jurisdiction.
Headnote:
The applicant sought interim injunction restraining the respondent from violating the Collaboration agreement by engaging with third parties and sought to enforce negative covenants. The respondent opposed the application, contending lack of territorial jurisdiction and failure of the applicant to comply with its obligations under the agreement. The court found that the applicant invoked jurisdiction based on discussions held at Chennai and Kolkatta, but no cause of action arose within the court's territorial jurisdiction. Consequently, the application was ordered to be returned for presentation in the competent court.
Vinod K. Sharma, J.
O.A. No.116 of 2013:
This application under Order XIV Rule 8 of O.S. Rules read with section 9(ii)(d)(e) of the Arbitration and Conciliation Act, has been filed for grant of interim injunction restraining the respondent, their agents, servants, collaborators, partners, associates or agreement holders wherever they be located or based other than the applicant from assembling, manufacturing, importing, marketing, selling or in any manner dealing with Wind Turbines/Wind Turbine Generators or its components/sub assembles and parts within the territory of India other than through the applicant pending arbitration proceedings.
O.A.No.117 of 2013:
This application under Order XIV Rule 8 of O.S. Rules read with section 9(ii)(d)(e) of the Arbitration and Conciliation Act, has been filed for grant of interim injunction restraining the respondent, their agents, servants, collaborators, partners, associates or agreement holders from violating the Collaboration agreement signed between the applicant and the respondent on 21.2.2012 by applying for or securing a C-WET license.
2 In support of these applications, it is pleaded that M/s.Vyuvidyut Projects Private Ltd./applicant is a company registered under the Companies Act, 1956 having its registered office at No.5, Third Floor, New Creation Building, 130-C, D.H.Road, Joka, Kolkata. The applicant has a liasion office in Chennai situated at No.15, First Floor, Above Silver Sky Super Market, Gangai Amman Koil Street, Kodambakkam, Chennai.
3 Whereas the respondent is a company incorporated in China and engaged in the manufacture, sale and trading of Wind Turbine Generators (WTGs), its components and parts.
4 The respondent entered into a Collaboration Agreement with the applicant on 21.2.2012 appointing the applicant as their sole and exclusive Indian Partner for the purpose of manufacturing and assembly of components of Wind Turbines in line with the C-WET and RLMM guidelines in India.
5 The applicant was also granted the sole and exclusive rights within the territory of India to set up a facility for the manufacture and sub-assembly of all current and future models/ products and components of the respondent.
6 In addition, applicant was granted exclusive rights to set up the facility for sub-contract and sub-assembly of all models/ products and components of the second respondent and for applying for certification by C-WET for the model W-2000 belonging to the respondent and all other models of the respondent, existing or to be manufactured or brought out by the respondent in future within the territory of India for an inflexible period of 10 years for which the respondent undertook to provide all the infrastructural requirements for the facility and to support the applicant in many other ways.
7 It was expressly provided in the Collaboration agreement that the applicant would not involve itself with any other Wind Turbine manufacturer other than the respondent, and in turn, the respondent agreed to work exclusively with the applicant for the manufacture, sale, as also the Certification by CWET and inclusion in RLMM of its Wind Turbines in respect of all their current models under introduction or to be introduced subsequently during the tenure of the agreement.
8 As already noticed above, the agreement was for an initial and irrevocable period of 10 years from the date of signing the collaboration agreement, subsequently extendable by another 3 years by mutual agreement.
9 Clause 2.1, 2.2 and 6.6 of the Collaboration agreement read as under:
2.1 Role of Indian Partner:
Set up a facility for subcontract and sub assembly of components of SEWIND WTGs, as per SEWIND defined standards. Location of the facility shall be in Tamilnadu/Pondicherry as approved by SEWIND at its own cost.
Employ technical staff and labour, as recommended by SEWIND, in the facility, with appropriate skills and keep them trained by SEWIND to meet the process standards.
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