The 15 errors
1“Nobody told the Division Bench” is not a reason an Hon'ble Single Judge can use to depart from it
In a High Court, an Hon'ble Single Judge must follow a ruling of an Hon'ble Division Bench. If the Hon'ble Judge thinks the ruling is wrong, the only proper step is to send the question to a larger Bench. This judgment takes a third route. (“Per incuriam” means a ruling given in ignorance of a binding law or precedent; later courts need not follow such a ruling.) For most of these rulings, it says some case or point “was not pointed out” to the Hon'ble Division Bench, or was “not noticed” by it, and that the ruling therefore “may not be binding”, is “not treated to be binding precedent”, or does “not constitute binding precedent”. See the 13 Hon'ble Division Bench rulings and the exact words used for each (click to find out the exact reason for each departure, judgment-wise).
What the Maestro judgment says · para 21
"it was not pointed out to the learned Division Bench that WWE is no longer a binding precedent ... The observations and findings given by the learned Division Bench in these judgments, thus, may not be binding".
and para 110
"It is further settled that a judgment is precedent for what it decides, it can never be binding qua issues which were not raised before it."
What the Supreme Court says · State of Bihar v Kalika Kuer (Supreme Court, 2003), (2003) 5 SCC 448 : 2003 SCC OnLine SC 578, para 10
"In connection with this observation, we would like to say that an earlier decision may seem to be incorrect to a Bench of a coordinate jurisdiction considering the question later, on the ground that a possible aspect of the matter was not considered or not raised before the court or more aspects should have been gone into by the court deciding the matter earlier but it would not be a reason to say that the decision was rendered per incuriam and liable to be ignored. The earlier judgment may seem to be not correct yet it will have the binding effect on the later Bench of coordinate jurisdiction. Easy course of saying that earlier decision was rendered per incuriam is not permissible and the matter will have to be resolved only in two ways — either to follow the earlier decision or refer the matter to a larger Bench to examine the issue, in case it is felt that earlier decision is not correct on merits."
and Somawanti v State of Punjab, (1963) 33 Comp Cas 745 : 1962 SCC OnLine SC 23
"The binding effect of a decision does not depend upon whether a particular argument was considered therein or not, provided that the point with reference to which an argument was subsequently advanced was actually decided."
The Maestro judgment does not use the words “per incuriam”. But treating a ruling as not binding because some case or point “was not pointed out” to the Bench is the per incuriam rule in substance, and that is what the Supreme Court addressed.
Why this matters. The Supreme Court has said an Hon'ble Judge cannot use that label simply because some argument was not made. Para 110 mixes up an argument that was not made with an issue that was not decided. Whether offering goods or services through an interactive online platform reachable from Delhi amounts to “carrying on business” in Delhi was the very issue Kohinoor, Raju Kumar, Sauss and Adyar Gate decided. An Hon'ble Single Judge who disagrees with them can only refer the question, and another Hon'ble Judge of the Court (in HUL v Kwick Living) had already done so.
Read the full extracts
The same reasoning appears at para 103 (Kohinoor), para 112 (Kohinoor, Adyar Gate), para 117 (HUL v Kwick Living, Hon'ble Division Bench), para 137 (R.K. Distillery, Prag), para 165 (Kohinoor, on registration), para 184 (Tata Sons) and para 269 (Horlicks).
Kalika Kuer, para 12: "In Pradip Chandra Parija v. Pramod Chandra Patnaik [(2002) 1 SCC 1] it has been held that where a Bench consisting of two Judges does not agree with the judgment rendered by a Bench of three Judges, the only appropriate course available is to place the matter before another Bench of three Judges and in case the three-Judge Bench also concludes that the judgment concerned is incorrect then the matter can be referred to a larger Bench of five Judges."
See also Parveen Kumar v State of Haryana, 2026 INSC 667: a judgment is not per incuriam merely because it reached an incorrect conclusion after considering the precedent (as reported).
2It relies on a Supreme Court case that says the opposite of what the Maestro judgment then does
When this case was decided, three of the questions it answers had already been referred to a larger Bench of the High Court (HUL v Kwick Living, reference order, CS(COMM) 904/2026, 25.08.2026, para 53). A “reference” is an order asking a larger Bench to settle a question on which rulings conflict. An Hon'ble Judge in that position might wait. The Maestro judgment explains why it went ahead: in Ashok Sadarangani, the Supreme Court said a pending reference does not freeze other cases. That is right. But the same passage adds that, until the larger Bench decides, the existing rulings “continue to hold the field”: they must still be followed. The Maestro judgment quotes that very line, and then refuses to follow them.
The three questions referred · HUL v Kwick Living, reference order · CS(COMM) 904/2026 · 25.08.2026 · para 53
"53.1. Whether IP suits are governed solely by section 20 CPC; by section 134 of the Trade Marks Act; or section 62 of the Copyright Act, or by an interplay of all those provisions and if so, how. 53.2. Whether a corporate plaintiff must sue only where its principal or registered office is situate when a part of the cause of action has arisen there. 53.3. What jurisdictional rule should govern online transactions in IP disputes in light of the conflicting approaches taken in Banyan Tree, World Wrestling Entertainment and Kohinoor Seed Fields."
Those existing rulings, all of Hon'ble Division Benches of the same Court, had held, in short:
- WWE v Reshma Collection (FAO(OS) 506/2013, 15.10.2014), para 24: a plaintiff whose own website concludes sales with customers in Delhi is, “to a certain extent, carrying on business at Delhi”.
- Kohinoor Seed Fields v Veda Seed Sciences (FAO(OS)(COMM) 66/2025, 03.12.2025): the WWE principle “would equally apply to carrying on a business by the defendant for the purpose of Section 20(a)” (para 19.6); registration of the mark in Delhi “unquestionably constitutes not just a part, but an indispensable part of the cause of action” (para 17.8); and availability of the infringing goods “across e-commerce websites, at Delhi” is part of the cause of action (para 20.3).
- Raju Kumar v Vinod Sah (FAO(COMM) 260/2025, 13.01.2026), para 20: “every virtual platform over which the defendant's goods or services would be available operates as a brick and mortar store present in every location where that website is accessible.”
- Sauss Home Products v Reckitt Benckiser (FAO(OS)(COMM) 145/2025, 07.02.2026), paras 61 and 62: as the appellant's product was available on the IndiaMart platform, “it could not be said that the appellant was not carrying on business within the jurisdiction of this Court.”
- ITC v Adyar Gate Hotels (FAO(OS)(COMM) 207/2025, 01.07.2026), para 98: “interactive accessibility is the key ... if it is possible to conclude a commercial transaction over the website, territorial jurisdiction would prima facie exist.”
- Tata Sons v Hakunamatata Tata Founders (FAO(OS)(COMM) 62/2022, 19.09.2022): “targeting” includes the “ability of the customers to undertake a commercial transaction on a website within a particular geography” (para 20); and “Mere looming presence of a website in a geography and ability of the customers therein to access the website is sufficient, in a given case” (para 22).
- Allied Blenders v R.K. Distillery (FAO(OS) 251/2016, 28.02.2017), para 21: the apprehension of a launch in Delhi, “on a demurrer, would constitute cause of action or at least a part of the cause of action”; and Allied Blenders v Prag Distillery (FAO(OS) 49/2017, 01.03.2017), para 8, to the same effect.
- Horlicks v Heinz India (FAO(OS) 86 and 87/2009, 23.10.2009), para 92(iii): “The principle of forum non conveniens does not apply to civil suits in India which are governed by the said Code”.
- RSPL v Mukesh Sharma (FAO(OS) 145/2016, 03.08.2016), para 10, and Chandra Kishore Chaurasia v R A Perfumery Works (FAO(COMM) 128/2021, 27.10.2022), para 8: an objection to territorial jurisdiction under Order VII Rule 10 “is to be decided on a demurrer, that is, by accepting all statements made in the plaint to be true” (Chaurasia).
- Hindustan Unilever v Kwick Living (FAO(OS)(COMM) 231/2026, 02.09.2026), para 9: on the admitted facts that the defendant's hoardings were put up in Delhi and that it had declared a principal place of business in Delhi to the GST authorities, “the conditions of Section 20(a) as well as 20(c) of CPC are duly satisfied in this case.”
See all 13, and the exact words the Maestro judgment used to depart from each.
Ashok Sadarangani was a petition to the Supreme Court to quash a criminal case after a settlement. The petitioners relied on three earlier rulings (B.S. Joshi, Nikhil Merchant and Manoj Sharma) whose correctness had been referred to a larger Bench in Gian Singh (para 23). The Supreme Court was asked to wait for that reference, and refused.
What the Maestro judgment says · para 28, quoting Ashok Sadarangani v Union of India (Supreme Court, W.P.(Crl.) 26/2011, 14.03.2012) (2012) 11 SCC 321
"...the pendency of a reference to a larger Bench, does not mean that all other proceedings involving the same issue would remain stayed...Till such time as the decisions cited at the Bar are not modified or altered in any way, they continue to hold the field."
What the Supreme Court actually did · Ashok Sadarangani para 29
"The reference made in Gian Singh case need not, therefore, detain us."
Then, in paras 30 to 32, it applied the rulings that were under reference (B.S. Joshi, Nikhil Merchant, Manoj Sharma) and distinguished them on the facts. It did not set them aside.
Why this matters. The case the Maestro judgment leans on allowed it to decide, but only on the footing that the existing Hon'ble Division Bench rulings stay binding. Instead, WWE, Kohinoor, and the Hon'ble Division Benches that applied WWE (Raju Kumar, Sauss, Adyar Gate) were not followed, though they are the rulings on the very questions referred at para 53.3. (Horlicks, RSPL, Chaurasia and the two Allied Blenders rulings are outside the reference; for them the ordinary rule in the previous error applies, with even more force.) The Supreme Court followed the precedents under reference; this judgment did not.
Read the full extracts
The other Hon'ble Judge, considering the same questions, did the opposite. In HUL v Kwick Living (CS(COMM) 904/2026, 25.08.2026, Hon'ble Bhambhani J.), the Court referred the questions to a larger Bench:
- Para 53: "having regard to the position enunciated by the Supreme Court in Sanjay Dalia, and the approaches subsequently adopted by the Division Benches of this court inter-alia in Ultra Home Construction and Kohinoor Seed Fields, this court is of the view that the question would appropriately merit consideration by a Larger Bench".
- Question 53.3 asks what rule should govern online transactions "in light of the conflicting approaches taken in Banyan Tree, World Wrestling Entertainment and Kohinoor Seed Fields".
The Maestro judgment quotes para 52 of that same order with approval (para 86). It then settles, by itself, the very conflict that para 53 sent to a larger Bench “in the interests of certainty and consistency in the law”.
3It says WWE ignored Dhodha House and cannot be reconciled with later rulings. WWE quoted Dhodha in full, and the Maestro judgment itself reconciles WWE with those rulings
Under the Supreme Court's decision in Dhodha House (Supreme Court, 15.12.2005), a company “carries on business” in a place only if an essential part of its business happens there. In WWE, an Hon'ble Division Bench held that a plaintiff whose website concluded sales with customers in Delhi was, “to a certain extent, carrying on business at Delhi” for the special trade mark and copyright provisions. The Maestro judgment departs from WWE on two grounds: that it ignores, and is “in the teeth of”, Dhodha House; and that it is “irreconcilable” with two later rulings, Sanjay Dalia and Ultra Home. Neither ground survives the record, or the Maestro judgment's own reasoning.
What the Maestro judgment says · para 87
"Thus, owing to WWE being in the teeth of the ratio of Dhodha House, and after the decisions in Sanjay Dalia and Ultra Home, no longer being workable, the decision of the Division Bench no longer governs the issue."
And para 118(a)
"The decision of WWE, does not govern the field concerning the interpretation of the expression 'carries on business' owing to: first, it being irreconcilable with the judgments in Sanjay Dalia and Ultra Home; and second, it ignoring material portions of Dhodha House."
Ground 1: did WWE ignore Dhodha House?
The Maestro judgment itself · para 20
"The judgment of this Court in World Wrestling Entertainment, Inc. v. Reshma Collection & Ors., despite noticing the decision of Dhodha House, appears to have fallen foul of its material conclusions."
WWE itself · paras 13 and 19 (FAO(OS) 506/2013)
At para 13 WWE extracts Dhodha House paras 46, 47 and 51, including the very sentence the Maestro judgment says WWE goes against (para 66): "It is possible that the goods manufactured by the plaintiff are available in the market of Delhi or they are sold in Delhi but that by itself would not mean that the plaintiff carries on any business in Delhi." At para 19: "Considering the fact that in Dhodha House (supra), the third condition stipulated that to constitute 'carrying on business' at a certain place, the essential part of the business must take place there, it would be necessary to examine this aspect in the backdrop of business over the internet."
And WWE para 24, quoted by the Maestro judgment at para 56
"What we are examining is whether the third condition specified in Dhodha House (supra) is satisfied or not. In other words, if the contracts and/or transactions ... are being concluded in Delhi, can it not be said that the essential part of the business of the appellant/plaintiff, insofar as its transactions with customers in Delhi are concerned, takes place in Delhi?"
Yet the Maestro judgment says · para 70
"while the activity of entering into transactions has been described in detail by the Division Bench the issue of whether this activity is an 'essential part' of the plaintiff's business has not been analysed."
Ground 2: is WWE irreconcilable with Sanjay Dalia and Ultra Home?
WWE was decided on 15.10.2014, before Sanjay Dalia (Supreme Court, 01.07.2015) and Ultra Home (Hon'ble Division Bench, 20.01.2016). Neither of those rulings mentions WWE. Neither decided whether concluding sales online amounts to “carrying on business”: Sanjay Dalia and Ultra Home concerned where a plaintiff with a principal office and branch offices may sue. Ultra Home was written by the same Hon'ble Judge who wrote WWE, as the Maestro judgment itself notes (para 76).
The Maestro judgment's own reconciliation · paras 75, 80, 81 and 83
Para 75: "the decision in WWE would not govern the field on this issue, and would have to be restricted to its own peculiar and unique facts." Para 80: "However, if, after being honest and fair to the Court, a company is found to be concluding contracts only within the jurisdiction of one Court, jurisdiction may be made out under the specialised statutes, under the WWE reasoning." Para 81: "As per the ruling in WWE itself, there would be multiple deemed physical stores ... Resultantly, these sub-offices would be deemed to be 'carrying on business' only when cause of action (as per the standard in Banyan Tree) accrues at that place." Para 83: "Thus, for an overwhelming number of cases, the decision in WWE, post Sanjay Dalia and Ultra Home, can no longer be made applicable."
Why this matters. On the first ground, the Maestro judgment's own para 20 accepts that WWE noticed Dhodha House, and WWE extracted the very Dhodha passages it is said to have ignored, then framed and answered the “essential part” question in Dhodha's own words. The Maestro judgment may think WWE reached the wrong answer, but that is a disagreement about how an Hon'ble Division Bench applied a Supreme Court ruling, not ignorance of it. On the second ground, the Maestro judgment calls WWE “irreconcilable” (para 118(a)), but its own reasoning reconciles it: it keeps WWE alive for one situation (para 80), and fits WWE's “deemed stores” into the branch-office rule from Sanjay Dalia and Ultra Home (para 81). Narrowing a ruling by reading it with later ones is reconciling it; and the four later Hon'ble Division Benches (Kohinoor, Raju Kumar, Sauss and Adyar Gate), all decided after Sanjay Dalia and Ultra Home, applied WWE; Kohinoor and Adyar Gate cite Ultra Home by name. A ruling that later Hon'ble Division Benches have applied, and that the Maestro judgment itself partly preserves, is not one an Hon'ble Single Judge can declare to no longer “govern the issue”. If the Hon'ble Judge thought WWE should be narrowed, the course was a reference, and one was already pending.
Read the full extracts
WWE (Hon'ble Division Bench, 2014 SCC OnLine Del 2031, Badar Durrez Ahmed and Vibhu Bakhru JJ, 15.10.2014):
- Para 13 quotes Dhodha paras 46, 47 and 51, including the very sentence the Maestro judgment says WWE goes against (para 66): "It is possible that the goods manufactured by the plaintiff are available in the market of Delhi or they are sold in Delhi but that by itself would not mean that the plaintiff carries on any business in Delhi."
- Para 14: "(iii) to constitute 'carrying on business' at a certain place, the essential part of the business must be performed at that place."
- Para 19: "Considering the fact that in Dhodha House (supra), the third condition stipulated that to constitute 'carrying on business' at a certain place, the essential part of the business must take place there, it would be necessary to examine this aspect in the backdrop of business over the internet ... at which place does the essential part of the business transaction take place?"
4It says three Hon'ble Division Benches were not told about key cases. Its own quotations show they discussed them
Kohinoor, Adyar Gate and Raju Kumar are later Hon'ble Division Bench rulings that followed WWE. Para 103 says Kohinoor is not binding because two things were “not pointed out”: that “WWE on facts may not be applicable” (WWE concerned the plaintiff's own website; Kohinoor concerned goods listed by others on third-party marketplaces), and that “WWE was and is no longer the authority holding the field” (because of Ultra Home and Sanjay Dalia). Both were before the Bench. Kohinoor heard and answered the first, and the passages the Maestro judgment itself quotes show the Benches knew of Ultra Home.
What the Maestro judgment says · para 103
"owing to it not being pointed out to the Division Bench that WWE on facts may not be applicable, and that WWE was and is no longer the authority holding the field, the decision in Kohinoor Seed Fields, in turn, is not treated to be binding precedent".
The first point was argued · Kohinoor, paras 19.7 and 19.8 (FAO(OS)(COMM) 66/2025, 03.12.2025)
"But then, submits Mr. Raj Shekhar Rao, there is no interactive website of the respondent, over or across which the allegedly infringing goods could be purchased at Delhi. At least, the plaint does not so aver. The placement of the goods for sale over e-commerce websites by third parties, without the concurrence or authorization of the respondent, tacit or express, could not create a cause of action for the appellant, for the purposes of territorial jurisdiction." ... "The submission is unquestionably weighty."
Kohinoor then answered it, at paras 19.9 to 19.13.
What its own quotations show · Adyar Gate para 98, quoted at para 108
"As per the law which has developed over the decisions in Banyan Tree Holding, World Wrestling Entertainment, Ultra Home Construction, Tata Sons, Kohinoor Seed Fields and Sauss Home Products ..."
Kohinoor para 20.3, quoted at para 193
"... As such, no occasion arises to invoke the Ultra Home Construction doctrine."
And Kohinoor para 20.5 (FAO(OS)(COMM) 66/2025)
"With greatest respect to the learned Authors of the judgment of the Division Bench in Ultra Home Construction, we have some reservations regarding the correctness of this proposition ... would, in our view, be re-writing Section 134 of the Trade Marks Act, which a Court cannot do."
Raju Kumar v Vinod Sah · para 19 (FAO(COMM) 260/2025, 13.01.2026)
"On the aspect of territorial jurisdiction in trademark matters, the Supreme Court has held, in Dhodha House v. S.K. Maingi as well as in Indian Performing Rights Society v. Sanjay Dalia ..."
Why this matters. These Benches knew the cases and took a different view. That is disagreement, not ignorance, and an Hon'ble Single Judge cannot overrule an Hon'ble Division Bench for disagreeing.
Read the full extracts
- Raju Kumar para 20, quoted at para 105: "Though, in Banyan Tree Holding, the Court had held that it is necessary to show conclusion of a commercial transaction over the said website, that position now does not survive after the decision in World Wrestling Entertainment".
- Kohinoor para 20.5 (C. Hari Shankar and Om Prakash Shukla JJ, 03.12.2025) deals with Ultra Home directly: "With greatest respect to the learned Authors of the judgment of the Division Bench in Ultra Home Construction, we have some reservations regarding the correctness of this proposition ... would, in our view, be re-writing Section 134 of the Trade Marks Act, which a Court cannot do."
- Kohinoor discusses Dhodha House at paras 17.4 to 17.13 and Banyan Tree at paras 19.4 to 19.4.6, and refers to Sanjay Dalia throughout.
- The HUL v Kwick Living reference order (para 46) itself records that Kohinoor "expressed reservations regarding the correctness" of Ultra Home.
- ITC v Adyar Gate refers to Ultra Home 4 times and to Sanjay Dalia 8 times.
Para 21 says WWE stopped “holding the field” because of Sanjay Dalia and Ultra Home. An appeal (SLP) against Kohinoor is pending in the Supreme Court, with notice issued on 20.02.2026 (para 113). Raju Kumar's SLP was dismissed on 30.04.2026, without reasons.
5It says it will not decide whether the “merger doctrine” is the law, then reasons as if it is
The question, with an example
The Supreme Court in Sanjay Dalia (Civil Appeal 10643-44/2010, 01.07.2015) settled one thing, at paras 20 and 21. Under the special IP provisions (s.134(2) of the Trade Marks Act and s.62(2) of the Copyright Act), a plaintiff company cannot sue at a far-off branch office if the cause of action has also arisen where it has its principal office. A wider question was left for debate. Section 20 of the Code separately allows a suit where the defendant is, or where any part of the cause of action arose. The Maestro judgment gives this idea a name of its own, the “Merger Doctrine” (para 251); the expression does not appear in either Sanjay Dalia judgment. It means that once the cause of action has also arisen where the plaintiff is, that place is the only place, so the s.20 options close too.
What is settled · Sanjay Dalia, Supreme Court · para 21
"But the right is subject to the rider in case the plaintiff resides or has its principal place of business/carries on business or personally works for gain at a place where cause of action has also arisen, suit should be filed at that place not at other places where the plaintiff is having branch offices, etc."
Example: the plaintiff has its head office in Mumbai and a branch in Delhi. The defendant is in Kolkata, and infringing goods are sold in Mumbai and Kolkata. Sanjay Dalia clearly shuts Delhi. The merger doctrine would also shut Kolkata, the defendant's own city, which s.20 of the Code would otherwise allow. Whether Kolkata stays open is the question.
At para 250, the Maestro judgment extracts paras 24 to 26 of the Supreme Court's judgment in Sanjay Dalia, where the Supreme Court explains why plaintiffs should not drag defendants to distant places. When para 251 asks what the Supreme Court intended “by making these observations”, it means those paras 24 to 26.
The Maestro judgment · para 251
"It provides that if cause of action (wholly or in part) has arisen where the plaintiff resides, carries on business, or personally works for gain, he can sue at that place and at no other place. Whether the Supreme Court in Sanjay Dalia by making these observations intended to foreclose the avenues under Section 20 of the CPC or do they remain intact is the issue that has been agitated ad nauseam. This Court, is refraining from rendering any conclusive finding on this issue."
What the next four paragraphs do
Para 251 continues by calling the Hon'ble Division Bench ruling in Sanjay Dalia (FAO(OS) 359/2007, 19.11.2008) “the most appropriate and relevant guidance”, one “which was subsequently approved by the Supreme Court”. It then extracts para 13 of that Hon'ble Division Bench ruling, which holds that the plaintiff's place is “not only the appropriate but also the only place where a suit can be instituted”. Then:
Para 252
"The intent behind the words of the Supreme Court can be gathered from the decision which was affirmed by it. The words used by the Division Bench are categorical and unequivocal."
Para 253
"The argument of there being a bar in the application of the Merger Doctrine owing to each sub-clause of Section 20 being independent without any correlation with each other must be stated only to be rejected."
Para 254
"The very same underlying reasoning is being applied under Section 20 for the Merger Doctrine. ... The underlying rationale of Patel Roadways thus assists in arriving at the conclusion under the Merger Doctrine."
Para 255
"Separate from the issue concerning the Merger Doctrine, the decision in Sanjay Dalia, is being used in the present case, only to highlight that the absence of textual language may not be conclusive of the construction which is to be adopted."
So, within five paragraphs, the judgment declines to decide, then says the Supreme Court's intent is “categorical and unequivocal”, rejects the main argument against merger, says the merger reasoning “is being applied under Section 20”, and finally says Sanjay Dalia is used only for a point about interpretation. The conclusions at para 295 say nothing about merger. A reader cannot tell whether, in the example, Kolkata is still open.
Why the Hon'ble Division Bench sentence cannot settle it
In the Sanjay Dalia case before the Hon'ble Division Bench, every option already pointed to Mumbai. The plaintiff's registered office was in Mumbai and it also had an office in New Delhi (para 1). The defendants owned cinema halls only in Maharashtra and Mumbai, and the whole cause of action arose in Mumbai (para 2). The Hon'ble Division Bench itself recorded that the cause of action arose “in Maharashtra only” (para 13). The only other forum in play was the plaintiff's own Delhi office. The “only place” sentence in para 13 was therefore spoken in a case where no s.20 option, such as the defendant's place, pointed anywhere else.
Sanjay Dalia, Hon'ble Division Bench (FAO(OS) 359/2007) · paras 1, 2 and 13
Para 1: "that its Registered Office is at 208, Golden Chambers, New Andheri Link Road, Andheri (W), Mumbai; it also has an Office at B-317, Som Dutt Chamber-I, Bhikaji Cama Place, New Delhi." Para 2: "the Defendants have underscored the fact that they own Cinema Halls only in Maharashtra and Mumbai and that the entire cause of action, as alleged in the Plaint, has arisen in Mumbai." Para 13: "So far as the facts of the present case are concerned, the cause of action, as laid out in the Plaint, has arisen in Maharashtra only, where the Plaintiff's principal office is located."
And the same Hon'ble Division Bench · paras 3 and 11
Para 3: "by requiring the Plaintiff to file a suit at the place where it has its principal or subordinate place of business if the cause of action has arisen there. Alternatively, the Plaintiff may take recourse to the provisions of Section 20 of the CPC." Para 11: "the word 'notwithstanding' connotes that in addition to Section 20 of the CPC, by virtue of Section 62(2) of the Copyright Act, the plaintiff is free to choose a forum convenient to it ..."
So the Hon'ble Division Bench ruling that para 252 reads as “categorical and unequivocal” itself says that the s.20 route remains open as an alternative. Its para 13 “only place” sentence is about the special provisions; the same paragraph says “we are, in no wise, whittling down the provisions of either the Copyright Act or the Trade Marks Act”.
What the Supreme Court said in its own words
The Supreme Court's own paragraphs point both ways. That is why the point needed a reasoned decision, not a disclaimer followed by a conclusion.
Sanjay Dalia, Supreme Court · C.A. 10643-44/2010 · 01.07.2015 · para 14
"the expression "notwithstanding anything contained in the Code of Civil Procedure" does not oust the applicability of the provisions of Section 20 of the Code of Civil Procedure and it is clear that additional remedy has been provided to the plaintiff so as to file a suit where he is residing or carrying on business, etc. as the case may be."
Sanjay Dalia, Supreme Court · para 20 (the rider, aimed at the plaintiff's branch offices)
"In our opinion, in a case where the cause of action has arisen at a place where the plaintiff is residing or where there are more than one such persons, any of them actually or voluntarily resides or carries on business or personally works for gain would oust the jurisdiction of other place where the cause of action has not arisen though at such a place, by virtue of having subordinate office, the plaintiff instituting a suit or other proceedings might be carrying on business or personally works for gain."
But Supreme Court para 52, read alone, is wider
"However, if the plaintiff is residing or carrying on business, etc. at a place where the cause of action, wholly or in part, has also arisen, he has to file a suit at that place, as discussed above."
And Supreme Court para 53 (it dismissed the appeals for its own reasons)
"Thus, for the aforesaid reasons mentioned by us in the judgment, we are not inclined to interfere with the orders passed by the High Court."
The same question was already before a larger Bench
Before the Maestro judgment was delivered, an Hon'ble Single Judge of the same Court had referred this exact question to a larger Bench. The Maestro judgment knew of the reference.
HUL v Kwick Living, reference order · CS(COMM) 904/2026 · 25.08.2026 · para 53.2
"Whether a corporate plaintiff must sue only where its principal or registered office is situate when a part of the cause of action has arisen there."
The Maestro judgment · para 27
"The Court is conscious that finding some difficulty in the application of the aforenoted decisions, a reference order has been passed by a co-ordinate Bench, to decide the issue of jurisdiction in infringement and passing off suits."
So para 251 was right to hold back. What it should not have done is lean towards an answer in paras 252 to 254 on a question a larger Bench had been asked to decide.
Why this matters. Whether s.20 of the Code survives the merger doctrine decides whether a plaintiff can still sue where the defendant is. The Supreme Court's own words can be read either way, and the question was already before a larger Bench, so the right course was to leave it alone. The Maestro judgment does neither: it disclaims a finding and then gives one. The finding rests on para 13 of the Hon'ble Division Bench ruling, spoken where no s.20 option pointed elsewhere, read (at para 252) as showing the Supreme Court's “intent”, when the Supreme Court dismissed the appeals for “the aforesaid reasons mentioned by us” (para 53).
Read the full extracts
What is settled · Sanjay Dalia, Supreme Court · para 21
"But the right is subject to the rider in case the plaintiff resides or has its principal place of business/carries on business or personally works for gain at a place where cause of action has also arisen, suit should be filed at that place not at other places where the plaintiff is having branch offices, etc."
The Maestro judgment · para 251
"It provides that if cause of action (wholly or in part) has arisen where the plaintiff resides, carries on business, or personally works for gain, he can sue at that place and at no other place. Whether the Supreme Court in Sanjay Dalia by making these observations intended to foreclose the avenues under Section 20 of the CPC or do they remain intact is the issue that has been agitated ad nauseam. This Court, is refraining from rendering any conclusive finding on this issue."
Para 252
"The intent behind the words of the Supreme Court can be gathered from the decision which was affirmed by it. The words used by the Division Bench are categorical and unequivocal."
Para 253
"The argument of there being a bar in the application of the Merger Doctrine owing to each sub-clause of Section 20 being independent without any correlation with each other must be stated only to be rejected."
Para 254
"The very same underlying reasoning is being applied under Section 20 for the Merger Doctrine. ... The underlying rationale of Patel Roadways thus assists in arriving at the conclusion under the Merger Doctrine."
Para 255
"Separate from the issue concerning the Merger Doctrine, the decision in Sanjay Dalia, is being used in the present case, only to highlight that the absence of textual language may not be conclusive of the construction which is to be adopted."
Sanjay Dalia, Hon'ble Division Bench (FAO(OS) 359/2007) · paras 1, 2 and 13
Para 1: "that its Registered Office is at 208, Golden Chambers, New Andheri Link Road, Andheri (W), Mumbai; it also has an Office at B-317, Som Dutt Chamber-I, Bhikaji Cama Place, New Delhi." Para 2: "the Defendants have underscored the fact that they own Cinema Halls only in Maharashtra and Mumbai and that the entire cause of action, as alleged in the Plaint, has arisen in Mumbai." Para 13: "So far as the facts of the present case are concerned, the cause of action, as laid out in the Plaint, has arisen in Maharashtra only, where the Plaintiff's principal office is located."
And the same Hon'ble Division Bench · paras 3 and 11
Para 3: "by requiring the Plaintiff to file a suit at the place where it has its principal or subordinate place of business if the cause of action has arisen there. Alternatively, the Plaintiff may take recourse to the provisions of Section 20 of the CPC." Para 11: "the word 'notwithstanding' connotes that in addition to Section 20 of the CPC, by virtue of Section 62(2) of the Copyright Act, the plaintiff is free to choose a forum convenient to it ..."
Sanjay Dalia, Supreme Court · C.A. 10643-44/2010 · 01.07.2015 · para 14
"the expression "notwithstanding anything contained in the Code of Civil Procedure" does not oust the applicability of the provisions of Section 20 of the Code of Civil Procedure and it is clear that additional remedy has been provided to the plaintiff so as to file a suit where he is residing or carrying on business, etc. as the case may be."
Sanjay Dalia, Supreme Court · para 20 (the rider, aimed at the plaintiff's branch offices)
"In our opinion, in a case where the cause of action has arisen at a place where the plaintiff is residing or where there are more than one such persons, any of them actually or voluntarily resides or carries on business or personally works for gain would oust the jurisdiction of other place where the cause of action has not arisen though at such a place, by virtue of having subordinate office, the plaintiff instituting a suit or other proceedings might be carrying on business or personally works for gain."
But Supreme Court para 52, read alone, is wider
"However, if the plaintiff is residing or carrying on business, etc. at a place where the cause of action, wholly or in part, has also arisen, he has to file a suit at that place, as discussed above."
And Supreme Court para 53 (it dismissed the appeals for its own reasons)
"Thus, for the aforesaid reasons mentioned by us in the judgment, we are not inclined to interfere with the orders passed by the High Court."
HUL v Kwick Living, reference order · CS(COMM) 904/2026 · 25.08.2026 · para 53.2
"Whether a corporate plaintiff must sue only where its principal or registered office is situate when a part of the cause of action has arisen there."
The Maestro judgment · para 27
"The Court is conscious that finding some difficulty in the application of the aforenoted decisions, a reference order has been passed by a co-ordinate Bench, to decide the issue of jurisdiction in infringement and passing off suits."
6An Hon'ble Division Bench that decided the point for civil suits is set aside on remarks made in a criminal case and a transfer case
Forum non conveniens lets a court refuse a case because another court would be more convenient. In Horlicks, the plaintiffs had filed civil suits for disparagement in Delhi, and the Hon'ble Single Judge returned the plaints because the Bombay High Court was the more convenient court. The Hon'ble Division Bench reversed this, holding that “The principle of forum non conveniens does not apply to civil suits in India which are governed by the said Code” (para 92(iii)). The Maestro judgment departs from Horlicks on two grounds: two later Supreme Court decisions (para 268), and Horlicks not referring to an earlier Hon'ble Division Bench ruling, Sanjay Dalia (para 269).
What the Maestro judgment says · para 268
"Though the decisions in Dashrath and Harish Nigam in and of themselves are sufficient to depart away from the view taken in Horlicks, to some extent the judgment of the Division Bench of this Court may be analysed."
And para 269
"At the outset, it may be noted that the decision in Horlicks does not refer to a previously decided Division Bench decision of our Court in Sanjay Dalia, where our Court, in paras. 5 and 6, applies the doctrine of forum non-conveniens to civil suits. The judgment in Horlicks, thus, may be termed as being rendered without adverting to a binding precedent of this Court. On this short ground, again, the decision in Horlicks may not be termed as a precedent."
Ground 1: the two Supreme Court decisions
Neither was a civil suit. Dashrath Rupsingh Rathod v State of Maharashtra (2014) was a batch of criminal appeals on where a cheque-bounce complaint under s.138 of the Negotiable Instruments Act may be filed. In a passage the Supreme Court itself called “a short digression”, it discussed s.20 of the Code and the Patel Roadways rule that a suit against a company must be filed where its relevant office is, adding: “Obviously, this is also because every other place would constitute a forum non conveniens.” Dashrath was written by Hon'ble Vikramajit Sen J., who also wrote the Hon'ble Division Bench ruling in Sanjay Dalia discussed below, and that sentence repeats, almost word for word, the sentence in Sanjay Dalia's para 5. So both of the Maestro judgment's grounds rest, in the end, on the same sentence. Krishna Veni Nagam v Harish Nagam (2017) was a set of transfer petitions in matrimonial cases, decided under the Supreme Court's own power to transfer cases between courts. Its para 13, citing Kusum Ingots (a writ case), says:
Krishna Veni Nagam v Harish Nagam · para 13 (T.P.(C) 1912/2014)
"In a civil proceeding, the plaintiff is the dominus litis but if more than one court has jurisdiction, court can determine which is the convenient forum and lay down conditions in the interest of justice subject to which its jurisdiction may be availed."
Yet the Maestro judgment itself says · para 239
"When the Supreme Court acts under Section 25 of the CPC to transfer proceedings from a High Court or other Civil Court in one State to a High Court or other Civil Court in any other State, it does not apply forum conveniens as that lis which is being transferred could not be decided by the transferring-court. ... Even otherwise in Harish Nigam, the Supreme Court while exercising transfer jurisdiction noted the application of this doctrine to civil proceedings."
Krishna Veni Nagam rests on Kusum Ingots, a writ case. Horlicks had already dealt with Kusum Ingots:
Horlicks, Hon'ble Division Bench · para 70 (FAO(OS) 86 & 87/2009, 23.10.2009)
"Kusum Ingots and Alloys Ltd. v. Union of India, (2004) 6 SCC 254, where the matter involved exercise of writ jurisdiction under Article 226 of the Constitution of India and was not one governed by the said Code."
Ground 2: Sanjay Dalia
Sanjay Dalia was a civil (copyright) suit. But in that appeal it was conceded that no part of the cause of action arose in Delhi, and the Hon'ble Division Bench held that Delhi had no jurisdiction. Its para 5 sentence explains why a suit against a company goes to the place of its relevant office; it does not decline a jurisdiction the court had.
Sanjay Dalia, Hon'ble Division Bench (FAO(OS) 359/2007) · the concession, para 2
"In fairness to Mr. A.S. Chandhiok, learned Senior Counsel for the Appellant, it has been conceded before us that no part of the cause of action has arisen in Delhi."
And para 5
"However, if the Defendant's location is to form the fulcrum of jurisdiction, and it has an office also at the place where the cause of action has occurred, the Plaintiff is precluded from instituting the suit anywhere else. Obviously, this is because at every other place would constitute a forum non conveniens."
Contrast Horlicks · para 12
"In fact, it is clearly recorded that it is not even disputed that the Delhi Court would have jurisdiction."
So in Horlicks the Delhi court had jurisdiction and was asked to decline it; in Sanjay Dalia it had none.
And the Maestro judgment's own test · para 234
"The doctrine of forum conveniens, it is trite law, is applicable only when a forum is found to possess jurisdiction."
Why this matters. To be fair to the Maestro judgment, its first ground is the right kind of reason: a later Supreme Court ruling can displace an Hon'ble Division Bench, and Krishna Veni Nagam does speak of “civil proceeding[s]”. The question is whether remarks made in a criminal appeal and in transfer petitions, where, on the Maestro judgment's own reading, the Supreme Court acting under s.25 “does not apply forum conveniens” (para 239), though it “noted the application of this doctrine to civil proceedings” (same para), are enough “in and of themselves” to set aside an Hon'ble Division Bench that decided the very question for civil suits under the Code. That is genuinely debatable, and a debatable conflict between an Hon'ble Division Bench and later Supreme Court remarks is for a larger Bench to resolve. The second ground does not hold on the Maestro judgment's own test: forum non conveniens arises “only when a forum is found to possess jurisdiction” (para 234), and in Sanjay Dalia it was conceded that Delhi had none. That Hon'ble Division Bench therefore did not apply the doctrine to a civil suit; it explained a statutory rule. Not referring to that explanation is no reason to say Horlicks “may not be termed as a precedent”. The same section of the Maestro judgment (para 246) also says Parliament “did not intend” a suit where only part of the cause of action arose, if part also arose where a party is. Clause (c) of s.20 of the Code contains no such condition, and Horlicks held that a court cannot add one by way of forum non conveniens.
Read the full extracts
What the Maestro judgment says · para 268
"Though the decisions in Dashrath and Harish Nigam in and of themselves are sufficient to depart away from the view taken in Horlicks, to some extent the judgment of the Division Bench of this Court may be analysed."
And para 269
"At the outset, it may be noted that the decision in Horlicks does not refer to a previously decided Division Bench decision of our Court in Sanjay Dalia, where our Court, in paras. 5 and 6, applies the doctrine of forum non-conveniens to civil suits. The judgment in Horlicks, thus, may be termed as being rendered without adverting to a binding precedent of this Court. On this short ground, again, the decision in Horlicks may not be termed as a precedent."
Krishna Veni Nagam v Harish Nagam · para 13 (T.P.(C) 1912/2014)
"In a civil proceeding, the plaintiff is the dominus litis but if more than one court has jurisdiction, court can determine which is the convenient forum and lay down conditions in the interest of justice subject to which its jurisdiction may be availed."
Yet the Maestro judgment itself says · para 239
"When the Supreme Court acts under Section 25 of the CPC to transfer proceedings from a High Court or other Civil Court in one State to a High Court or other Civil Court in any other State, it does not apply forum conveniens as that lis which is being transferred could not be decided by the transferring-court. ... Even otherwise in Harish Nigam, the Supreme Court while exercising transfer jurisdiction noted the application of this doctrine to civil proceedings."
Horlicks, Hon'ble Division Bench · para 70 (FAO(OS) 86 & 87/2009, 23.10.2009)
"Kusum Ingots and Alloys Ltd. v. Union of India, (2004) 6 SCC 254, where the matter involved exercise of writ jurisdiction under Article 226 of the Constitution of India and was not one governed by the said Code."
Sanjay Dalia, Hon'ble Division Bench (FAO(OS) 359/2007) · the concession, para 2
"In fairness to Mr. A.S. Chandhiok, learned Senior Counsel for the Appellant, it has been conceded before us that no part of the cause of action has arisen in Delhi."
And para 5
"However, if the Defendant's location is to form the fulcrum of jurisdiction, and it has an office also at the place where the cause of action has occurred, the Plaintiff is precluded from instituting the suit anywhere else. Obviously, this is because at every other place would constitute a forum non conveniens."
Contrast Horlicks · para 12
"In fact, it is clearly recorded that it is not even disputed that the Delhi Court would have jurisdiction."
And the Maestro judgment's own test · para 234
"The doctrine of forum conveniens, it is trite law, is applicable only when a forum is found to possess jurisdiction."
7Two Hon'ble Division Bench rulings on pre-launch suits are bypassed for a later Single Judge ruling that never cited them
The question
A quia timet suit is filed before the harm happens, to stop a threatened launch. The question is this: if a brand owner sues in Delhi and pleads that the other side is about to launch in Delhi, is that pleaded threat enough for the Delhi court to keep the suit, when the court is only reading the plaint? At that stage (called “demurrer”) the court takes the plaint's statements as true and does not look at the defendant's case.
What the two Hon'ble Division Benches held
Allied Blenders v R.K. Distillery · Hon'ble Division Bench · FAO(OS) 251/2016 · 28.02.2017 · para 21
"Now, if all these averments in the plaint are taken to be correct, it would mean that there is a reasonable and credible apprehension that the impugned product would be launched and sold in New Delhi. These are the ingredients for a quia timet action. ... Clearly, the apprehension of the respondent launching its product under the impugned trade mark in Delhi, on a demurrer, would constitute cause of action or at least a part of the cause of action."
Allied Blenders v Prag Distillery · Hon'ble Division Bench · FAO(OS) 49/2017 · 01.03.2017 · para 8
"the mere fact that the plaint contained an averment that there was credible and imminent apprehension that the infringing product would be launched by the defendants within the territorial jurisdiction of this court, would by itself constitute a cause of action"
R.K. Distillery also made clear that this lower standard applies only while the court is reading the plaint, and that stricter scrutiny follows later:
R.K. Distillery · para 22
"Here, there is no question of considering the pleas of the plaintiff by way of a demurrer. Furthermore, the standards would be higher when an issue with regard to territorial jurisdiction is to be finally decided in the course of trial of the suit."
What the later Hon'ble Single Judge held
Shree Nath Heritage Liquor v Octaga Green Power (CS(COMM) 681/2016, Hon'ble Deepa Sharma J., 17.07.2017) was decided some four and a half months after both Hon'ble Division Bench rulings, and it cites neither. It was not decided on the plaint alone: jurisdiction was framed as an issue and heard as a preliminary issue. The plaint was returned, partly because the defendant had no excise licence to sell liquor in Delhi.
Shree Nath · para 2
"Subsequently, this issue was treated as a preliminary issue and the arguments of the parties were heard on this issue."
What the Maestro judgment does
The Maestro judgment · para 137
"The standard of scrutiny applied by the Division Benches in Prag Distillery Pvt. Ltd. and R.K. Distillery Pvt. Ltd. for a quia timet action was far lesser. While the decision in Shree Nath Heritage Liquour could be justified on the ground that it was passed on the preliminary issue which was framed after the completion of pleadings, it seems more appropriate to view it in the context of the additional issues which came to be raised before the learned Single Judge. The decision of RC Lahoti J. in Kuldip Singh was not noticed by the Division Benches, nor was the issue of the goods concerned being regulated by the Excise Act, and requiring a license to sell, adverted to. Both these aspects have a bearing on whether a cause of action for a quia timet action was made out. A judgment, it is trite law, is a precedent for what it decides and not what can be inferred from it. The issues not presented before a Court can never be said to be decided by it."
And it lays down · para 295 C(iii)
"For goods and services that are subject to regulatory control, in determining whether a quia timet action is maintainable, it is essential to consider whether the defendant holds the required licences or permissions, statutory or otherwise, required for their sale, use or any other commercial exploitation."
And applies it in Table 2 · para 297, row 5
Situation: "An impugned controlled product expressly restricted to sale in another State. A suit is filed as a quia timet action claiming that the defendant is about to expand to Delhi." Result: "The requirements of a quia timet action to file a suit at Delhi do not, ordinarily, get fulfilled if the defendant does not have the requisite license/permission for the concerned controlled goods/service in question."
Where this goes wrong
- The “far lesser” standard was not a mistake; it was the point. The Hon'ble Division Benches were reading only the plaint, and R.K. Distillery itself said that higher standards apply later. Shree Nath was decided after pleadings, on a preliminary issue, as para 137 itself accepts. The two lines of cases deal with different stages, so there was no conflict to correct. Yet Table 2 says that without the licence the requirements of a quia timet action “to file a suit at Delhi do not, ordinarily, get fulfilled”, which is the very stage the Hon'ble Division Benches decided. At that stage Prag held that the pleaded threat “would by itself constitute a cause of action”. “By itself” leaves no room for an added licence requirement.
- Kuldip Singh was not about jurisdiction. The Maestro judgment itself describes R.C. Lahoti J. as “finding the suit in question therein to be pre-mature” (para 135). The two ingredients it sets out are imminent danger and very substantial damage. R.K. Distillery applied the substance, calling a “reasonable and credible apprehension” of a Delhi launch “the ingredients for a quia timet action”. Not naming a case whose substance was applied is no ground to set aside a binding ruling.
- The licence point is partly fair. It was not argued before the Hon'ble Division Benches, so on para 137's own principle they did not decide it, and a later court may consider it. But considering a new factor is different from making it a condition for filing that cuts down what the Hon'ble Division Benches did decide.
- The judgment's own test points the other way. Shree Nath came four and a half months after R.K. Distillery and Prag and cited neither. If not noticing binding rulings is a reason to depart, it is Shree Nath that missed them.
- The condition is also hard to apply. A brand owner rarely knows, when filing, whether the other side holds a licence, and a counterfeiter without one is the most likely to sell anyway.
One more slip. Para 139 says “a Division Bench of this Court crystallised” the Novartis v Zydus test, which the Maestro judgment builds on. Novartis AG v Zydus Healthcare (2022 SCC OnLine Del 4373) was decided by Hon'ble C. Hari Shankar J. sitting singly, on 12.12.2022. That test also ends: “Nothing more is to be seen, when examining an Order VII Rule 11 challenge.”
Why this matters. An Hon'ble Single Judge may consider a point that an Hon'ble Division Bench never decided. An Hon'ble Single Judge may not add a condition that contradicts what the Hon'ble Division Bench did decide, at the same stage. If the demurrer standard in R.K. Distillery and Prag was thought too low, the proper course was a reference to a larger Bench.
Read the full extracts
Allied Blenders v R.K. Distillery · Hon'ble Division Bench · FAO(OS) 251/2016 · 28.02.2017 · para 21
"Now, if all these averments in the plaint are taken to be correct, it would mean that there is a reasonable and credible apprehension that the impugned product would be launched and sold in New Delhi. These are the ingredients for a quia timet action. ... Clearly, the apprehension of the respondent launching its product under the impugned trade mark in Delhi, on a demurrer, would constitute cause of action or at least a part of the cause of action."
Allied Blenders v Prag Distillery · Hon'ble Division Bench · FAO(OS) 49/2017 · 01.03.2017 · para 8
"the mere fact that the plaint contained an averment that there was credible and imminent apprehension that the infringing product would be launched by the defendants within the territorial jurisdiction of this court, would by itself constitute a cause of action"
R.K. Distillery · para 22
"Here, there is no question of considering the pleas of the plaintiff by way of a demurrer. Furthermore, the standards would be higher when an issue with regard to territorial jurisdiction is to be finally decided in the course of trial of the suit."
Shree Nath · para 2
"Subsequently, this issue was treated as a preliminary issue and the arguments of the parties were heard on this issue."
The Maestro judgment · para 137
"The standard of scrutiny applied by the Division Benches in Prag Distillery Pvt. Ltd. and R.K. Distillery Pvt. Ltd. for a quia timet action was far lesser. While the decision in Shree Nath Heritage Liquour could be justified on the ground that it was passed on the preliminary issue which was framed after the completion of pleadings, it seems more appropriate to view it in the context of the additional issues which came to be raised before the learned Single Judge. The decision of RC Lahoti J. in Kuldip Singh was not noticed by the Division Benches, nor was the issue of the goods concerned being regulated by the Excise Act, and requiring a license to sell, adverted to. Both these aspects have a bearing on whether a cause of action for a quia timet action was made out. A judgment, it is trite law, is a precedent for what it decides and not what can be inferred from it. The issues not presented before a Court can never be said to be decided by it."
And it lays down · para 295 C(iii)
"For goods and services that are subject to regulatory control, in determining whether a quia timet action is maintainable, it is essential to consider whether the defendant holds the required licences or permissions, statutory or otherwise, required for their sale, use or any other commercial exploitation."
And applies it in Table 2 · para 297, row 5
Situation: "An impugned controlled product expressly restricted to sale in another State. A suit is filed as a quia timet action claiming that the defendant is about to expand to Delhi." Result: "The requirements of a quia timet action to file a suit at Delhi do not, ordinarily, get fulfilled if the defendant does not have the requisite license/permission for the concerned controlled goods/service in question."
8Kohinoor's reasoned holding on online availability (paras 19 to 19.15) is relabelled a passing remark
The part of a judgment that decides the case (its “ratio”) binds later courts. A passing remark (“obiter”) does not. In para 20.3, Kohinoor gave three reasons why “a substantial part of the cause of action” arose in Delhi, one being that the defendant's goods were “available for sale and purchase, across e-commerce websites, at Delhi”. The Maestro judgment calls Kohinoor's observations on s.20(c) obiter, noting that Kohinoor had itself said WWE is not an authority on s.20(c) (para 194).
What the Maestro judgment says · para 194
"the observations made in the context of Section 20(c) constituted obiter dicta and not binding precedent."
What Kohinoor said · para 20.3, quoted at para 193
"a substantial part of the cause of action in the present case does arise within the territorial jurisdiction of this Court, because (i) ... (ii) ... and (iii) the allegedly infringing goods of the respondent are available for sale and purchase, across e-commerce websites, at Delhi."
And Kohinoor · paras 19.12 and 19.13 (FAO(OS)(COMM) 66/2025, 03.12.2025)
"The assertion that the allegedly infringing goods of the respondent were available on the IndiaMart and Kalgudi websites, and that orders could be placed on these websites within the territorial jurisdiction of this Court were, therefore, sufficient to confer jurisdiction on this Court to adjudicate on the suit." ... "The suit, seeking relief thereagainst, could be filed before every Court having territorial jurisdiction over the situs of sale of such goods."
So online availability was not a passing remark: Kohinoor decided it in a full section of reasons (paras 19 to 19.15) before listing it again in para 20.3. To be fair, para 20.3 opens “We need not delve too deep into this aspect”, but that refers to the Ultra Home point, not to online availability.
Why this matters. When a court expressly rests its decision on two or more grounds, each of them is part of the decision, not a side remark (Jacobs v London County Council [1950] AC 361, House of Lords). Para 20.3 lists online availability as one of the reasons the case was decided as it was.
Read the full extracts
What the Maestro judgment says · para 194
"the observations made in the context of Section 20(c) constituted obiter dicta and not binding precedent."
What Kohinoor said · para 20.3, quoted at para 193
"a substantial part of the cause of action in the present case does arise within the territorial jurisdiction of this Court, because (i) ... (ii) ... and (iii) the allegedly infringing goods of the respondent are available for sale and purchase, across e-commerce websites, at Delhi."
And Kohinoor · paras 19.12 and 19.13 (FAO(OS)(COMM) 66/2025, 03.12.2025)
"The assertion that the allegedly infringing goods of the respondent were available on the IndiaMart and Kalgudi websites, and that orders could be placed on these websites within the territorial jurisdiction of this Court were, therefore, sufficient to confer jurisdiction on this Court to adjudicate on the suit." ... "The suit, seeking relief thereagainst, could be filed before every Court having territorial jurisdiction over the situs of sale of such goods."
9An Hon'ble Division Bench's reasoned holding that damage in passing off is part of the cause of action is set aside on disagreement alone
In a passing off action the plaintiff must prove three things: goodwill, misrepresentation by the defendant, and damage to the plaintiff. In ITC v Adyar Gate (Hon'ble Division Bench, C. Hari Shankar and O.P. Shukla JJ., FAO(OS)(COMM) 207/2025, 01.07.2026), ITC sued in Delhi, where its own Dakshin restaurant is, over the defendant's DAKSHIN restaurant in Chennai. The Hon'ble Division Bench reasoned that since damage is one of the facts ITC must prove, part of the cause of action arises where that damage is suffered.
Adyar Gate · para 108
"In a passing off action, the three main ingredients are goodwill, misrepresentation by the defendant, and damage which arises to the plaintiff as a result of such misrepresentation. ... If, because of the use of the DAKSHIN mark by AGH at Chennai, injury or damage is suffered by a plaintiff elsewhere, the suit could be legally instituted at such other place as well."
And para 118
"Inasmuch as part - in fact the determinative part - of the cause of action has arisen at Delhi, where ITC's Dakshin restaurant is situated and where, therefore, the injury resulting from the use, by AGH, of the "Dakshin" Mark would be felt by ITC, we are of the opinion that ITC cannot be foreclosed from filing the present suit at Delhi."
The Maestro judgment · paras 203 and 204
"By doing so, the Court, effectively applied the dynamic effect principle using the text of Section 20(c)." ... "The dynamic effect principle and such an interpretation of part cause of action, in the opinion of this Court, may not confer jurisdiction."
Yet the test it adopts for websites · Conclusion F(i)
"the plaintiff must demonstrate that the defendant has purposefully availed itself of the jurisdiction of the forum court by specifically targeting persons within its territory and it resulting in an injury or harm to the plaintiff within the forum state."
Where this goes wrong
- No “not pointed out” reason is offered here, even nominally. Paras 203 and 204 simply disagree with an Hon'ble Division Bench, which an Hon'ble Single Judge cannot do.
- Para 204's reason (that this reading would make the special trade mark provisions pointless) does not engage with Adyar Gate's actual reasoning: that damage is an element of the tort of passing off, so the place where it is suffered is part of the cause of action.
- Conclusion G(ii) speaks of the effect “of the infringement”, but it is used here against a holding on passing off.
- The Maestro judgment's own test for websites (Conclusion F(i), taken from Banyan Tree) itself requires “injury or harm to the plaintiff within the forum state”. Harm at the plaintiff's place is a recognised part of jurisdiction, not a foreign idea.
To be fair, Adyar Gate itself said that whether ITC actually suffered injury “is a matter of trial” (para 112). That goes to proof, not to whether the Delhi court can hear the suit.
Why this matters. An Hon'ble Division Bench gave reasons for holding that damage in passing off is part of the cause of action. An Hon'ble Single Judge who disagrees with those reasons must refer the question, not label the holding “dynamic effect” and set it aside.
Read the full extracts
Adyar Gate · para 108
"In a passing off action, the three main ingredients are goodwill, misrepresentation by the defendant, and damage which arises to the plaintiff as a result of such misrepresentation. ... If, because of the use of the DAKSHIN mark by AGH at Chennai, injury or damage is suffered by a plaintiff elsewhere, the suit could be legally instituted at such other place as well."
And para 118
"Inasmuch as part - in fact the determinative part - of the cause of action has arisen at Delhi, where ITC's Dakshin restaurant is situated and where, therefore, the injury resulting from the use, by AGH, of the "Dakshin" Mark would be felt by ITC, we are of the opinion that ITC cannot be foreclosed from filing the present suit at Delhi."
The Maestro judgment · paras 203 and 204
"By doing so, the Court, effectively applied the dynamic effect principle using the text of Section 20(c)." ... "The dynamic effect principle and such an interpretation of part cause of action, in the opinion of this Court, may not confer jurisdiction."
Yet the test it adopts for websites · Conclusion F(i)
"the plaintiff must demonstrate that the defendant has purposefully availed itself of the jurisdiction of the forum court by specifically targeting persons within its territory and it resulting in an injury or harm to the plaintiff within the forum state."
10An Hon'ble Division Bench's GST finding is set aside for “not pointing out” a law that could not have changed its answer
In HUL v Kwick Living, the Hon'ble Division Bench (FAO(OS)(COMM) 231/2026, 02.09.2026) heard an appeal in the very suit that had just been referred to a larger Bench, and clarified that it was expressing no opinion on the reference (para 16). It held that the Delhi court had jurisdiction on two footings: the defendant's hoardings were put up in Delhi, so the cause of action arose there (s.20(c) of the Code); and the defendant had declared a principal place of business in Delhi to the GST authorities, so it carried on business in Delhi (s.20(a)). The Maestro judgment says the GST finding “may not have binding effect” because the GST law was not pointed out to the Bench (para 117).
What the Hon'ble Division Bench held · para 9
"the conditions of Section 20(a) as well as 20(c) of CPC are duly satisfied in this case. The admitted facts are that hoardings carrying the impugned advertisement campaign were erected at Delhi prior to the date of institution of the suit, thus the cause of action has indisputably arisen at Delhi, and in light of the declaration of principal place of business at Naraina made by the Respondent before the GST authorities, the Respondent undoubtedly carries on business at Delhi at the time of the commencement of the suit."
What the Maestro judgment says · para 117
"The import, requirements, and constituent elements, of what constitutes a "principal office" is fundamentally in contradistinction to what is considered as the "principal place of business" under the GST Act. ... In Hindustan Unilever, the binding and applicable statutory provisions, were not pointed out to the Division Bench. Resultantly, the conclusion on this issue, may not have binding effect."
And para 114
"Though the ultimate conclusion of the Division Bench was arrived at on the basis of additional grounds, this specific finding, may be analysed in some depth."
How a company “carries on business”
For a company, s.20(a) works through the Explanation to s.20, which has two limbs. A company carries on business at its “sole or principal office”, or, for a cause of action arising where it also has a subordinate office, at that place. GST law is different again: a company must register in each State where it does business and name a “principal place of business” within that State (para 116). Example: a Mumbai company registers for GST in Delhi and names a Naraina address. Its principal office remains Mumbai; Naraina is at most a subordinate place of business, which counts only if the cause of action arose in Delhi. Here it did: the hoardings.
The Explanation, as summarised in Sanjay Dalia, Hon'ble Division Bench · para 4
"The Explanation to that Section is important; it prescribes that a corporation shall be deemed to carry on business at its sole or principal office, or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place."
Where this goes wrong
- Paras 115 to 117 test the GST declaration only against the first limb (“principal office”). They do not consider the second limb, which is the one the facts satisfy.
- The second limb is the Maestro judgment's own Conclusion B(iii): “A corporation shall be deemed to carry on business at its sub-ordinate office if the cause of action for a given suit accrues at that place.” The defendant had declared a place of business in Delhi; under GST law, as para 116 notes, that place must be “within that State/Union Territory”. And the Hon'ble Division Bench found that the cause of action “has indisputably arisen at Delhi”. So even reading the GST law exactly as the Maestro judgment does, the Hon'ble Division Bench's answer stands. A law that could not have changed the result cannot make the ruling non-binding.
Why this matters. On the usual understanding of per incuriam, a ruling is treated as given in ignorance of a statute only where that statute governs the question and would have changed the answer. On the Maestro judgment's own reasoning, the GST provisions would not have changed this answer. And while the reference was pending, the existing rulings “continue to hold the field”, as the Supreme Court said in the very passage the Maestro judgment quotes (para 28).
Read the full extracts
What the Hon'ble Division Bench held · para 9
"the conditions of Section 20(a) as well as 20(c) of CPC are duly satisfied in this case. The admitted facts are that hoardings carrying the impugned advertisement campaign were erected at Delhi prior to the date of institution of the suit, thus the cause of action has indisputably arisen at Delhi, and in light of the declaration of principal place of business at Naraina made by the Respondent before the GST authorities, the Respondent undoubtedly carries on business at Delhi at the time of the commencement of the suit."
What the Maestro judgment says · para 117
"The import, requirements, and constituent elements, of what constitutes a "principal office" is fundamentally in contradistinction to what is considered as the "principal place of business" under the GST Act. ... In Hindustan Unilever, the binding and applicable statutory provisions, were not pointed out to the Division Bench. Resultantly, the conclusion on this issue, may not have binding effect."
And para 114
"Though the ultimate conclusion of the Division Bench was arrived at on the basis of additional grounds, this specific finding, may be analysed in some depth."
The Explanation, as summarised in Sanjay Dalia, Hon'ble Division Bench · para 4
"The Explanation to that Section is important; it prescribes that a corporation shall be deemed to carry on business at its sole or principal office, or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place."
11In a footnote, two Hon'ble Division Benches are written off on a rule that comes from the Supreme Court
When a defendant objects at the very start of a case that the court has no jurisdiction, the court decides by assuming that what the plaint says is true. Proof comes later, at the trial. Lawyers call this deciding “on demurrer”. Two Hon'ble Division Benches, RSPL and Chaurasia, applied that rule. A footnote (fn 137, attached to para 220 in the forum non conveniens discussion, not in the demurrer section) says they “may not remain good law today”, without giving a reason; since both rulings rest on the demurrer rule (RSPL para 10; Chaurasia para 8), that is the natural reading. And the Maestro judgment holds that “Bald, unfounded, and empty narrations unsupported by any documents ought to be ignored”, giving as an example a plaint that says the goods are freely sold in Delhi but attaches no documents (Table 2, row 6). (Order VII Rule 10 of the Code returns a plaint to the proper court; Rule 11 rejects it outright. Manjula, below, is a Rule 11 case.)
What the Maestro judgment says · fn 137
"The dictum in M/s RSPL Limited v. Mukesh Sharma and Anr., FAO (OS) No. 145/2016 and Chandra Kishore Chaurasia v. R A Perfumery Works Pvt. Ltd., 2022:DHC:4454, similarly, also may not remain good law today."
and para 294(a) and (c), restated as Conclusion J(i)
"The doctrine of demurrer ... has been diluted" and "Bald, unfounded, and empty narrations unsupported by any documents ought to be ignored while determining whether the Court has the requisite jurisdiction".
What the Supreme Court says · Exphar SA v Eupharma (Supreme Court, 20.02.2004), (2004) 3 SCC 688, para 9, quoted in Chaurasia para 11
"when an objection to jurisdiction is raised by way of demurrer and not at the trial, the objection must proceed on the basis that the facts as pleaded by the initiator of the impugned proceedings are true."
And Manjula (Supreme Court, C.A. 7370/2026, 08.05.2026, 2026 INSC 465) para 9.4, quoted by the Maestro judgment at para 292
"It is trite law that the plaint can be rejected for failure to produce documents relied upon or referred to in the plaint. There can be no quarrel with the well settled position that while considering an application for rejection of plaint, only the averments in the plaint and the documents filed along with the plaint can be looked into. Though we agree with the learned Senior Counsel for the Respondent / Plaintiff on this proposition, the plaint cannot be read in an incomprehensive manner."
Why this matters. The rule is the Supreme Court's own, and even the Supreme Court cases the Maestro judgment relies on say the same. Those cases (Arivandandam and Akbar Ali, quoted at paras 290 and 291, and Manjula) deal with plaints that are illusory, cleverly worded to get around a legal bar, or missing documents the plaint itself relies on. None of them lets a court, deciding jurisdiction at the threshold, disbelieve a specific pleaded fact merely because no document is attached to prove it, which is what Table 2, row 6 does. And para 288's reading of Dhodha House as confining Exphar “to its own facts” does not hold: Dhodha (paras 32 to 35) dealt only with Exphar's ruling on s.62(2), noting that “the questions which have been raised herein had not been raised in Exphar SA”. It said nothing about the demurrer rule. Two Hon'ble Division Bench rulings are written off in a footnote, in a footnote to a different part of the judgment, with only the word “today” as the reason.
Read the full extracts
Chaurasia (Hon'ble Division Bench, Vibhu Bakhru and Amit Mahajan JJ, 27.10.2022):
- Para 8: "It is trite law that an objection regarding territorial jurisdiction of a court, raised by way of an application under Order VII Rule 10 of the CPC, is to be decided on a demurrer, that is, by accepting all statements made in the plaint to be true."
- Para 20: at the Order VII Rule 10 stage "the court is not required to examine the merits of the averments made and to evaluate whether the plaintiff would be able to prove or establish the same."
K. Akbar Ali (2021) 14 SCC 51, para 5, quoted at para 291: "the Court is not to look into the strength or weakness of the case of the plaintiff or the defence raised by the defendant."
RSPL was decided by Badar Durrez Ahmed and Sanjeev Sachdeva JJ. Badar Durrez Ahmed J also wrote Ultra Home, which the Maestro judgment treats as the controlling ruling.
Para 288 also misreads Dhodha House. It says "the Supreme Court in Dhodha House sought to restrict the application of Exphar SA to its own facts." But Dhodha paras 32 to 35 deal only with a different part of Exphar (its para 13, on s.62(2) as an extra place to sue). They observe that "No infringement of the trade mark as such was, thus, in question in that case" and that "the questions which have been raised herein had not been raised in Exphar SA". Dhodha says nothing about Exphar's para 9 on demurrer, which still binds.
12It says registering a mark in Delhi has nothing to do with where you can sue
A suit for infringement lies only for a registered mark; the statutory right comes from registration (ss.27(1) and 28 of the Trade Marks Act). The “cause of action”, which decides where a suit can be filed, includes the facts on which the right rests. So the Hon'ble Division Bench in Kohinoor held that registration in Delhi is part of the cause of action. The Maestro judgment holds the opposite. It says Kohinoor “may not be binding on this issue” because two writ cases were not shown to that Bench (para 165) (Alchemist v State Bank of Sikkim, 2007, and Union of India v Adani Exports, 2001: Supreme Court appeals from writ petitions, on whether part of the cause of action arose within a High Court's territory). Here “registration in Delhi” means the mark was registered at the Trade Marks Registry's Delhi office.
What the Maestro judgment says · Conclusion E(ii)
"Registration of a mark within the jurisdiction of a given court does not constitute part of the cause of action."
What the Supreme Court said · Sanjay Dalia (C.A. 10643-44/2010, 01.07.2015), para 17
"Cause of action not only refers to the infringement but also the material facts on which right is founded."
and Kohinoor para 17.8
Registration "unquestionably constitutes not just a part, but an indispensable part" of the cause of action.
To be fair, the Maestro judgment's point is about place: “the factum of the trademark being registered at Delhi has nothing to do with the bundle of facts constituting the cause of action” (para 165). That registration is a material fact is clear; whether the place of registration is part of the cause of action is debatable. The objection here is to the method.
Why this matters. The two writ cases (Alchemist and Adani Exports) state a general test, and Kohinoor applied that same test. Alchemist even says, as quoted at para 164, that “even if a small fraction of the cause of action arises within the jurisdiction of the court, the court would have territorial jurisdiction”. So this is a disagreement on the merits, not a reason to ignore an Hon'ble Division Bench. The Maestro judgment's comparison with the place where a company is incorporated (para 165) also misses the point: the statutory right to sue for infringement is created by registration.
Read the full extracts
What the Maestro judgment says · Conclusion E(ii)
"Registration of a mark within the jurisdiction of a given court does not constitute part of the cause of action."
What the Supreme Court said · Sanjay Dalia (C.A. 10643-44/2010, 01.07.2015), para 17
"Cause of action not only refers to the infringement but also the material facts on which right is founded."
and Kohinoor para 17.8
Registration "unquestionably constitutes not just a part, but an indispensable part" of the cause of action.
13It says Allied v Agribiotech was not told of Sanjay Dalia's registered-office rule. Agribiotech quotes the passage in full
To explain why it will not follow an earlier Single Judge ruling, Allied v Agribiotech (Hon'ble C. Hari Shankar J. sitting singly; an interim order in I.A. 4397/2020 in CS(COMM) 166/2020, 15.10.2020), the Maestro judgment says Sanjay Dalia's point on a company's registered office “was not brought to the notice” of that Hon'ble Judge, and that the Shree Nath case on liquor licences “was not adequately canvassed”. The Agribiotech judgment shows the Sanjay Dalia passage quoted in full, the point about the Delhi “registrar's” address argued and decided, and Shree Nath and the excise-licence point both argued.
What the Maestro judgment says · para 93
"It was not brought to the notice of the Coordinate Bench that in Sanjay Dalia, itself, the Supreme Court noted that ordinarily, the residence of a company would be where its registered office is."
and para 138
"The decision of Shree Nath Heritage, was not adequately canvassed before the learned Single Judge ..."
What Agribiotech shows · para 36 (2020 SCC OnLine Del 2861)
It quotes Sanjay Dalia para 16 word for word: "In the case of companies registered under the Companies Act, the controlling power is, as a fact, generally exercised at the registered office, and that office is therefore not only for the purposes of the Act, but for other purposes, the principal place of business".
and para 24
The defendant's counsel "places reliance" on Shree Nath Heritage Liquor Ltd. v. Octaga Green Power, 2017 SCC OnLine Del 9137.
And paras 23, 26 and 41
Para 23: the defendant argued that the Delhi address "was of the Registrar" and that its excise licences were "applicable only within the territory of the said State". Para 26: the plaintiff's rejoinder distinguishes Shree Nath. Para 41: the nature of the Delhi office "is a question of fact, which would have to be decided on the basis of pleadings an[d] evidence".
Why this matters. The first statement is incorrect: the passage was quoted, the point was argued, and the Court decided it should go to trial (para 41). The second is hard to sustain: Shree Nath and the excise point were argued by the defendant and answered by the plaintiff (paras 23, 24 and 26), though Agribiotech's findings do not discuss Shree Nath by name. (The Maestro judgment gives further reasons for not following Agribiotech at paras 92 and 95, including that it was an interim ruling.)
Read the full extracts
- Agribiotech para 23 records the defendant's argument that the Beetal House address "was of the Registrar", and that its excise licences "had been obtained ... from the Excise Commissioner, Government of Rajasthan, and were applicable only within the territory of the said State."
- Para 26: the plaintiff's reply, distinguishing Shree Nath.
- Para 41 holds that the nature of the registered office "is a question of fact, which would have to be decided on the basis of pleadings an[d] evidence".
The Maestro judgment's para 93 continues: "The controlling power, also, as a fact, generally, was found to be exercised at the registered office". Para 138 continues: "For alcohol, which is an excisable commodity, a license to sell must exist". Para 95 also says Agribiotech's "precedential value ... is, therefore, doubtful" because it was an interim order.
14It calls Burger King's “use” test “additional observations”, yet relies on Burger King as the governing law for infringement
In Burger King (Hon'ble Prathiba M. Singh J., 2018 SCC OnLine Del 10881, 27.08.2018, a quia timet suit), an Hon'ble Single Judge held that, under s.20 of the Code, “cause of action arises in each and every place where there is any form of use of the said mark”, for infringement and passing off alike. Para 157 of the Maestro judgment calls these observations on both claims “additional observations”, because the quia timet finding “was sufficient” to decide the case. Yet para 26 names Burger King as a governing decision for infringement suits “in the offline world”. For passing off, para 158 prefers two earlier Single Judge rulings (Glen Raven, 1995, and Indovax, 2017) that it says were “not pointed out” to Burger King.
What the Maestro judgment says · para 26
The governing decisions include "third, Burger King, to adjudicate on territoriality for suits concerning trademark infringement in the offline world".
and para 157
"While the conclusion in Burger King of jurisdiction for a quia timet action being made out was sufficient to adjudicate upon the controversy ... additional observations were made concerning the elements of 'cause of action' in a passing off and infringement suit."
What Burger King says · para 23 (2018 SCC OnLine Del 10881)
"cause of action arises in each and every place where there is any form of use of the said mark. Principles which apply to infringement, actions to determine 'use' would equally apply to passing off actions."
and paras 24 and 25
"Applying the above test to the facts of the present case ... For all these reasons, jurisdiction under Section 20 CPC is clearly vested in this Court."
Why this matters. Burger King applied the “use” test to the facts and decided jurisdiction on it (paras 24 and 25), so it is not a side remark. A decision cannot govern infringement while its reasoning on the same point is called “additional”. Choosing between earlier and later Single Judge rulings is a recognised course, so that part is debatable; but if the rulings conflict, the cleaner answer is a reference.
Read the full extracts
Burger King para 11: "the defendants are actually promoting their business and using the mark Burger King within the jurisdiction of this court ... the defendants' conduct of seeking franchise queries in Delhi would itself confer jurisdiction of this court under Section 20 CPC." Para 12 (a real and imminent threat) is an additional reason.
The two older rulings preferred for passing off, Glen Raven and Indovax, were said not to have been pointed out to Burger King (para 158).
15It turns Banyan Tree's caution about test purchases into a presumptive bar
To show that infringing goods are sold in a city, brand owners often have an investigator buy them there. Lawyers call these “trap” purchases. Banyan Tree, the leading Hon'ble Division Bench ruling on websites and jurisdiction, said a single trap purchase is not enough, that what is needed is “a real commercial transaction that the defendant has with someone not set up by the Plaintiff itself”, and that where the only evidence is a series of trap purchases, they must be shown to have been obtained by fair means. The Maestro judgment says that “as a rule”, such purchases “concoct” jurisdiction and ordinarily cannot be relied on, and it attributes this to Banyan Tree.
What the Maestro judgment says · para 25
"The use of an 'investigator' to enter into trap transactions so as to concoct jurisdiction in a forum which otherwise has no jurisdiction is also impermissible, as declared in Banyan Tree."
What the Maestro judgment says · Conclusion H(i)
"As a rule, the use of an investigator or any other person set up by the plaintiff to find jurisdiction before a forum court amounts to concocting jurisdiction. The findings of such an investigator, thus, ordinarily, cannot be relied upon."
What Banyan Tree actually says · para 57 (2009 SCC OnLine Del 3780)
"while in trade mark and infringement cases, trap orders or trap transactions may be used as evidence, the fairness of such transactions is a relevant factor to be considered ... A lone trap transaction will not be sufficient evidence of infringement or passing off ... This cannot possibly be a solitary trap transaction since that would not be an instance of 'purposeful' availment by the defendant. It would have to be a real commercial transaction that the defendant has with someone not set up by the Plaintiff itself. If the only evidence is in the form of a series of trap transactions, they have to be shown to be obtained using fair means."
As read by a later Hon'ble Division Bench · Tata Sons, para 20 (FAO(OS)(COMM) 62/2022, 19.09.2022)
"Banyan Tree Holding (P) Ltd. case approved of even bona fide trap sales within a particular geography to attract territorial jurisdiction of courts."
Why this matters. Read with its qualifier, para 25 is close to Banyan Tree: a trap set up “to concoct jurisdiction in a forum which otherwise has no jurisdiction” is not enough. But Banyan Tree also says that a series of trap purchases obtained by fair means, clearly pleaded and supported, can be relied on (para 57). Conclusion H(i) turns that into a rule that such purchases “as a rule” concoct jurisdiction and “ordinarily” cannot be relied on. Its second exception (H(ii): where sales are clearly taking place in the city and the investigator “merely provides evidence”) meets part of the concern, but not the fair series that Banyan Tree expressly allows.
Read the full extracts
Banyan Tree para 54: "evidence of trap orders has been accepted by courts in both trade mark infringement and passing off cases". Its answer (iii) in para 58 is to the same effect as para 57.
Para 208 points out that the cases Banyan Tree relied on were about shops, not websites. That does not change what Banyan Tree held.