Delhi High Court

High Court may refuse writ jurisdiction under forum conveniens if material cause of action arises elsewhere.

Aveena Milk Products vs Union Of India

Delhi High CourtJUDGMENT: March 27, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

In 2015, the Petitioner was sanctioned financial assistance of Rs. 10,00,00,000 for an integrated cold-chain project located in Uttarakhand under a government scheme

Source reference: para 2

On 08.11.2019, the Respondent declined to release the third installment of the grant-in-aid

Source reference: para 2

The Petitioner challenged this in a previous writ petition (W.P. (C) 454/2020), which the Delhi High Court disposed of on 06.03.2025, directing the Respondent to grant a hearing to the Petitioner

Source reference: para 3

Following the hearing held in Delhi, the Respondent issued a communication dated 04.12.2025, treating the Petitioner’s case as ‘closed’

Source reference: para 1, 5

The Petitioner filed the present writ petition to set aside this communication.

Source reference: no citation

The Court questioned the maintainability of the petition regarding territorial jurisdiction since the project is situated in Uttarakhand

Source reference: para 4
02

Issues

1. Whether the Delhi High Court must entertain a writ petition solely because a small part of the cause of action (issuance of an order or conducting a hearing) arose within its jurisdiction

Source reference: para 7-8

2. Whether the doctrine of forum conveniens permits the Court to refuse the exercise of its discretionary jurisdiction when the material part of the cause of action lies elsewhere

Source reference: para 8, 14
03

Law Applied

The Court primarily relied on the Supreme Court decision in Kusum Ingots & Alloys Ltd. v. Union of India, which clarified that 'cause of action' comprises every fact necessary for the plaintiff to prove to support their prayer

Source reference: para 6

It established that even if a small part of the cause of action arises within a High Court's jurisdiction, the Court may refuse to exercise discretionary jurisdiction under Article 226 by invoking the doctrine of forum conveniens

Source reference: para 8

The Court also applied the principle from Indure Pvt. Ltd. v. Government of NCT of Delhi, holding that the situs of the parties or the location where an order is passed is not the sole determinative factor for compelling a Court to entertain a petition

Source reference: para 12, 14
04

Reasoning

The Petitioner argued that jurisdiction was proper because the impugned order was passed in Delhi and the previous litigation occurred there

Source reference: para 5-6

While the Court admitted that a fraction of the cause of action arose in Delhi due to the Respondent's office location and the passing of the order, it determined that the "essential, material, and integral" part of the action arose in Uttarakhand

Source reference: para 7, 13

The Court reasoned that the underlying dispute involves verifying whether the Petitioner complied with the terms and conditions of a project physically situated in Uttarakhand

Source reference: para 10, 13

Relying on Kusum Ingots, the Court noted that the mere occurrence of correspondence or hearings in Delhi does not outweigh the fact that the project’s performance and subject matter are outside its territorial limits

Source reference: para 11, 14

Therefore, the Court found it appropriate to invoke the doctrine of forum conveniens to decline jurisdiction

Source reference: para 15
05

Holding

The Court declined to entertain the petition on the grounds of forum conveniens

It disposed of the petition while granting liberty to the Petitioner to approach the jurisdictional High Court (Uttarakhand)

Source reference: para 16

The Court clarified that it expressed no opinion on the merits of the case

Source reference: para 17
Delhi High Court

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Aveena Milk ProductsvsUnion Of India

Delhi High Court · March 27, 2026

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