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2025 Supreme(Kar) 2745

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.NAGAPRASANNA, J.
Siddharth Chugh S/o Late Shri Vijay Kumar Chugh – Appellant
Versus
Array Networks India Pvt. Ltd. – Respondent
Civil Revision Petition No. 458 of 2025
Decided On : 07-11-2025

Advocates Appeared:
For the Appellant : Pankaj Bhagath
For the Respondent: Manu P. Kulkarni

The jurisdiction for defamation suits is determined by where the alleged defamatory impact occurs, asserting the importance of substantiated claims regarding the distribution and consequences of defamatory statements.

Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rule 10 - Jurisdiction of courts - The rejection of an application seeking the return of a plaint on jurisdictional grounds was questioned. The court emphasized that Section 20 of the CPC dictates the venue for suits based on whether the defendant resides or where the cause of action arises. (Paragraphs 3.1 to 3.3)

(B) Defamation - The court discussed the emergence of cause of action in defamation claims, stressing that action should be instituted where the defamation impacts the plaintiff's reputation. It was affirmed that CAUSE occurs when the defamatory material is communicated to third parties. (Paragraphs 12.1 to 12.3)

Facts of the case:
The appellant, a partner in Flash Cloud Consulting, challenged the dismissal of his application claiming the Bengaluru court lacked jurisdiction to hear a defamation suit filed against him by Array Networks India due to alleged defamatory emails. The plaintiff contended that their registered office in Bengaluru affected jurisdiction, whereas the defendant argued that the cause of action didn't arise there.

Findings of Court:
The court concluded the lower court had erred by not adequately addressing jurisdictional issues and failed to provide a comprehensive consideration of the law.

Issues: The primary issue was whether the Bengaluru court had jurisdiction over the defamation suit due to the absence of clear allegations of where the defamation occurred.

Ratio Decidendi: The court established that under Sections 19 and 20 of the CPC, the venue for legal proceedings must align with where the cause of action arises and must be based on substantiated claims regarding the impact of alleged defamatory statements.

Result: The petition was allowed in part, with the impugned order quashed and the case remitted back for fresh consideration.

Table of Content
1. parties and timeline of events leading to litigation (Para 3)
2. petitioner's arguments on jurisdiction (Para 4)
3. respondents' counterarguments on defamation (Para 5)
4. court's observation on jurisdiction and relevant sections (Para 6 , 7 , 8 , 9)
5. interpretation of sections 19 and 20 of cpc (Para 12 , 13)
6. conclusion and order by the court (Para 14)

ORDER :

1. The petitioner-defendant No.1 is at the doors of this Court calling in question rejection of an application filed under Order VII Rule 10 of the CPC filed seeking return of the plaint to a Court having jurisdiction.

2. Heard Sri Pankaj Bhagath, learned counsel appearing for petitioner and Sri Manu P. Kulkarni, learned counsel appearing for caveator/respondents 1 and 2.

3. Facts in brief, germane, as follows:

3.1 Before embarking upon consideration of the issue in the lis, I deem it appropriate to notice the protagonists in the lis. The petitioner is the defendant No.1, a partner and authorized signatory of respondent No.3/Company – Flash Cloud Consulting – defendant No.2, a partnership firm engaged in the business of sale and distribution of software. The 1st respondent is the plaintiff- Array Networks India Pvt. Ltd. (‘Array India’ for short) which is the Indian entity of Array Networks Inc. (‘Array, USA’ for short). Respondent No.2 - the plaintiff No.2 is an employee and Director of Array India, the plaintiff No.1.

3.2. On 03-09-2019, Array, USA enters into a distribution agreement with 3rd respondent/Flash Cloud Consulting for distribution and reselling of software products manufactured by Array, USA. The petitioner/defendant No.1 is a signatory to the said agreement. Close to 4 years thereafter, Array, USA discontinued their distributorship agreement with the petitioner, since the petitioner’s office – defendant No.2 was closed and sealed due to an investigation at the hands of the GST for alleged non-compliances under the CGST Act.

3.3. On 09-11-2023, respondents 1 and 2 received an electronic mail from their parent entity Array, USA that the defendant No.1/petitioner was sending false and defamatory e- mails to Array, USA and other third parties like KPMG, Deloitte and other Government Authorities in other jurisdiction. One day after the of the receipt of the email on 10-11-2023, the respondents 1 and 2/plaintiffs 1 and 2 file a suit in O.S.No.7357 of 2023 seeking injunction and declaration against the petitioner. Several reliefs were claimed in the said suit. The petitioner, after receipt of notice, files his written statement denying all the allegations and the concerned Court allows the application filed by the plaintiffs under Order 39 Rule 1 and 2 granting an injunction against the petitioner/the defendant No.1.

3.4. When things stood thus, the petitioner files an application in I.A.No.3 for return of plaint under Order VII Rule 10 of the CPC on the score, the Courts in Bengaluru have no jurisdiction to entertain the suit and it must be returned for want of jurisdiction. The concerned Court, in terms of the order dated 30- 10-2024 rejects the application. The rejection of the application has driven the petitioner to this Court in the subject petition.

4. The learned counsel appearing for the petitioner contends that Section 20 of the CPC does not deal with residence or office of the plaintiff, but only with that of the defendant; no reasons are assigned while depicting cause of action in the plaint that the cause of action has occurred in Bengaluru; Section 19 does not have any application in the said suit; Section 19 deals with compensation, while the present suit relates to injunction and declaration. Clause (a) and (b) of Section 20 of the CPC refers to the Court within the local limits of whose jurisdiction the defendant resides or carries on business; clause (c) of Section 20 refers to a Court within local limits of whose jurisdiction the cause of action wholly or in part arises. There is no pleading by the plaintiff in the plaint that

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