Delhi High Court Dismisses Writ Petitions Against SEBI for Lack of Territorial Jurisdiction
In a significant judgment delivered on December 18, 2023, the Delhi High Court, presided over by Hon’ble Justice Purushaindra Kumar Kaurav, dismissed a series of writ petitions filed against the Securities and Exchange Board of India (SEBI) and others. The court’s decision in case number W.P.(C) 15556/2023 & CM APPL.62322/2023 centered around the critical legal principles of territorial jurisdiction and forum conveniens.
The petitioner, Bharat Nidhi Limited, along with other respondents, including Vineet Jain and several companies, had approached the Delhi High Court challenging the revocation of a settlement order by SEBI related to alleged regulatory violations. However, the court found that the essential part of the cause of action leading to this dispute occurred primarily in Mumbai, thereby falling under the jurisdiction of the Bombay High Court.
Justice Kaurav, in his detailed judgment, emphasized, “The integral, essential and material part of cause of action had arisen within the territorial jurisdiction of the Bombay High Court.” This observation formed the crux of the court’s decision to dismiss the petitions on grounds of territorial jurisdiction.
Further elaborating on the principle of forum conveniens, Justice Kaurav noted, “The mere presence of registered offices or receipt of communication in Delhi does not constitute a significant part of the cause of action.” This statement underlines the court’s stance on preventing the abuse of jurisdiction and forum shopping.
The court’s decision marks a pivotal moment in the interpretation of territorial jurisdiction in the context of writ petitions. It highlights the importance of ascertaining the primary location where the cause of action arises, thereby determining the appropriate forum for legal proceedings.
Date of Decision : December 18, 2023
BHARAT NIDHI LIMITED VS SECURITIES AND EXCHANGE BOARD OF INDIA
