Different yardstick laid by Supreme Court to Transfer Commercial Litigation
The Honorable Supreme Court of India has very well laid down a
proposition of law regarding the Power of the Supreme Court to transfer
Suits etc. under Section 25 of the Code of Civil Procedure,1908. The matter came up before Honourable Apex Court in Fumo Chem Pvt. Ltd v/s Raj Processes Equipments and Systems Pvt.Ltd. on 12 April 2021.
The Apex Court clarified that functional convenience of one of the
parties in commercial litigation cannot be a ground to transfer a
a case under Section 25 of the Code of Civil Procedure.
The Honorable Apex Court further clarified that a petitioner who
wants to transfer a case involving business-related disputes from
one jurisdiction to another has to establish some grave difficulty or
prejudice in prosecuting or defending the case in a forum in which
the first case was instituted.
The Honorable Apex Court also held that the yardstick of transferring
matrimonial disputes cannot be followed in business-related
disputes in which some grave difficulty or prejudice has to be
shown by the party seeking transfer of his case. This Judgement of the Hon’ble Supreme Court will go a long way in laying down a law of transfer petition relating to business disputes.
