SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Ori) 15

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.P. ROUTRAY, J.
M/s. Heraeus Electro-Nite International N.V., Belgium and Another – Petitioners
Versus
Mr. G.S. Narayan and others - Opposite Parties 
W.P.(C) No.5213 of 2025
Decided On : 07-01-2026

Advocates Appeared:
For the Petitioners:Mr. S.P. Mishra, Senior Advocate, Mr. A.N. Das, Senior Advocate, Mr. N. Sarkar, Advocate, Ms. S. Rout, Advocate, Mr. A.P. Singh, Advocate
For the Opposite Parties :Mr. H. Goel, Advocate along with Mr. S.K. Jena, Advocate, Mr. D. Tripathy, Advocate

Jurisdiction clauses in contracts do not oust local courts if business activities affecting local parties are involved, and a plaint cannot be dismissed solely against some defendants if others remain.

Headnote:(A) Code of Civil Procedure, 1908 - Order 7 Rule 11 - Jurisdiction - Suit for permanent injunction dismissed by trial court for lack of jurisdiction based on International Exclusive Distributorship Agreement with exclusive jurisdiction clause for Swiss courts - Court noted that provision allowing jurisdiction clause does not necessarily oust local courts if other parties involved - Plaintiffs adequately stated a cause of action in their plaint, which the court determined could not be dismissed under the cited order. (Paras 1, 17, 23)

(B) Jurisdiction - The court may not dismiss a plaint solely against some defendants if others remain under jurisdiction - Provisions of law require the entire plaint to proceed unless it is clear that no cause of action exists. (Paras 20, 23)

Facts of the case:
Petition challenged dismissal of the plaint by trial and revisional courts, asserting lack of jurisdiction due to the IEDA naming Swiss courts as exclusive. Plaintiffs alleged unauthorized competition harming their business interests from activities involving the defendants. Defendants claimed the suit was barred by a jurisdiction clause.

Findings of Court:
Trial and revisional courts' rejection of plaint was upheld as there was inadequate justification for claim of lack of jurisdiction given the involvement of all parties.

Issues: Core issues included jurisdiction based on the IEDA and whether the plaintiffs adequately disclosed a cause of action.

Ratio Decidendi: The court found the jurisdiction clause did not necessitate ousting local courts and that claims of illusory causes of action were insufficient for dismissal at an early stage.

Result: Petition dismissed.

Table of Content
1. writ petition challenging prior orders. (Para 1 , 2 , 3)
2. claims of plaintiffs against defendants. (Para 4 , 5 , 6 , 7)
3. principles regarding jurisdiction of courts. (Para 8 , 9 , 10 , 11)
4. jurisdiction clauses and their enforceability. (Para 12 , 13 , 14)
5. rejection of plaint under order 7 rule 11. (Para 15 , 16 , 17)
6. cause of action and its substantiation. (Para 18 , 19 , 20)
7. final observations and dismissal of petition. (Para 21 , 22 , 23)

JUDGMENT :

B.P. Routray, J.

1. Heard Mr. S.P. Mishra, learned Senior Advocate for the Petitioners and Mr. H. Goel, learned Advocate for the Opposite Parties.

2. Present writ petition is directed assailing the order dated 6th November 2024 of learned Additional District Judge, Jharsuguda passed in Civil Revision No.2 of 2024 and the order dated 2nd December 2023 passed by learned Civil Judge (LR & LTV), Jharsuguda in Civil Suit No.154 of 2013, along with further direction to allow the application of the Petitioners under Order 7 Rule 11 of the C.P.C. to reject the plaint in C.S. No.154 of 2013.

3. Present Opposite Parties 1 & 2 filed Civil Suit No.154 of 2013 in the court of learned Senior Civil Judge, Jharsuguda praying for a decree of permanent and perpetual injunction restraining the Defendants from carrying out actions undermining and in gross violation of the business arrangement between Defendant No.1 and the Plaintiffs. For better appreciation, the detailed prayer of the Plaintiffs is re-produced below:-

"(a) Declare the actions of the Defendant No.1 in promoting the Defendant No. 3 in selling their products in Indian Market, are illegal, wrongful, malafide and in gross violation of the terms of business arrangements and commitments between the Defendant No.1 and the Plaintiffs that have been existing and continuing for over 35 years;

(b) Decree of permanent and perpetual injunction restraining the Defendants from carrying out actions which undermine, are contrary to or in gross violation of the business arrangements and commitments between the Defendant No.1 and the Plaintiffs that have been existing and continuing for over 35 years;

(c) Let a direction be passed upon the Defendant No. 1 to honor and abide by its commitments and business arrangements with the Plaintiffs that have been existing and continuing for over 35 years and further that all sale and supply of the Products by the Defendant No.1 in India should be carried out exclusively through its business arrangement and commitments with the Plaintiffs;

(d) Let a direction be passed upon the Defendant No.1 to continue to supply to the Plaintiffs, the Products that are being supplied by the Defendant No.1 under the existing business arrangements and commitments between the Defendant No.1 and the Plaintiff without and exception or disruption or stoppage of such supplies;

(e) A decree of permanent and perpetual injunction restraining the Defendants from selling or distributing the products in India which are similar to and/or competing with the Products being marketed and distributed in India under the business arrangements and commitments between the Defendant No.1 and the Plaintiffs that have been existing and continuing for over 35 years;

(f) A decree of permanent and perpetual injunction restraining the Defendants from issuing, circulating or making any disparaging statement, comment or communication in the Indian market which is harmful and detrimental to the business arrangements and commitments between the Defendant No.1 and the Plaintiff that have been existing and continuing for over 35 years;

(g) Costs of this suit in favor of the Plaintiffs and against the Defendants may be decreed, (h) Any other and further reliefs to which the plaintiffs are entitled under law and equity may also be passed."

4. The Petitioners are Defendants 1 & 2 in the suit, whereas present Opposite Party No.3 is Defendant No.3 in the suit.

5. The substance of contentions of the Plaintiffs in the plaint is that, they are carrying bu

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top