Facts
The Petitioner, a foreign entity, sought a direction against Respondent No. 2 (ECGC Ltd., headquartered in Mumbai) to remove its "defaulter" status.
Source reference: para. 1The dispute arose from a 2024 export transaction involving Respondent No. 3 (based in Kolkata), regarding a shipment of red lentils to Djibouti and Ethiopia.
Source reference: para. 2The goods were declared unfit for human consumption by Ethiopian authorities and destroyed.
Source reference: para. 3Consequently, ECGC Ltd. issued a notice to the Petitioner for non-payment.
Source reference: para. 4The Petitioner moved the Delhi High Court on the basis that Respondent No. 1 (Ministry of Commerce and Industry) is located in Delhi.
Source reference: para. 6Issues
Whether the mere location of the Respondent-Authority’s head office or the Union Government in Delhi is sufficient to vest territorial jurisdiction in the Delhi High Court when the cause of action arose elsewhere.
Source reference: para. 7-9Whether the court should exercise its discretionary jurisdiction under the doctrine of *forum non conveniens* despite a small part of the cause of action potentially arising in Delhi.
Source reference: para. 11-12Law Applied
The Court applied the principle that the *situs* of a respondent's head office does not automatically determine territorial jurisdiction.
Source reference: para. 7It relied on the "integral, material, and essential" facts test established in *The Indure Pvt. Ltd. v. Government of NCT of Delhi*.
Source reference: para. 8-9Furthermore, it invoked the doctrine of *forum conveniens* as articulated by the Supreme Court in *Kusum Ingots & Alloys Ltd. v. Union of India*, which permits a High Court to refuse to entertain a petition even if a small part of the cause of action arises within its jurisdiction if another forum is more appropriate.
Source reference: para. 12Reasoning
The Court observed that the underlying dispute was purely contractual, involving entities in Mumbai and Kolkata, and international transactions in Djibouti and Ethiopia.
Source reference: para. 5There was no direct privity of contract between the Petitioner and the Delhi-based Ministry.
Source reference: para. 5The Court reasoned that the presence of the Union of India as a respondent is an "unchanging constant" in the national capital and cannot be treated as a "dominant" or "integral" fact to the *lis*.
Source reference: para. 9-10It held that entertaining such matters would erroneously turn the Delhi High Court into a "mini-pan-India Superior Court" for events occurring entirely outside its borders.
Source reference: para. 8Holding
The Court dismissed the petition on the grounds of lack of territorial jurisdiction and the doctrine of *forum non conveniens*.
It held that the substance of the matter had no connection with Delhi.
Source reference: para. 10-11Liberty was granted to the Petitioner to approach the appropriate jurisdictional High Court to agitate the matter.
Source reference: para. 13Original Court PDF
Mohiddin Lanka Foodstuff Trading LLC v. Union of India and Ors. [W.P.(C) 6444/2025]
Click to open original judgment
Original judgment, available to read, download and summarize on LawLens.in