
or
Anti-suit injunction order is made against a party in personam restraining him/ her from instituting a legal action from continuing with proceedings that has already been instituted. This injunction can be granted in respect of proceedings in both the local and foreign courts. In other words, Antisuit injunctions prohibit a party from taking or continuing a case in another jurisdiction. They are used to enforce exclusive jurisdiction clauses and to prevent forum shopping.
Anti-suit injunctions can be broadly categorized into two main categories: a. Anti-Suit Injunctions to prevent a contractual breach; and
b. Anti-Suit Injunction to prevent a noncontractual breach.
The important considerations when granting an anti-suit injunction to prevent a contractual breach includes the following:
The Hon’ble Supreme Court in Modi Entertainment Network and Anr. vs. W.S.G. Cricket PTE. Ltd.1 has propounded the principles for grant of anti-suit injunctions, which are as under:
In Board of Control for Cricket in India vs. Essel Sports (Pvt.) Ltd.2 the Hon’ble Delhi High Court held that “in a situation where an Indian Court is moved for an anti-suit injunction, possible, two situations arise so far as the Defendant is concerned: one, where a party against whom an anti-suit injunction is sought is an Indian party or resident in India; and the other, where Defendant is a foreign party or resident abroad. Insofar as a party is Indian or resident in India, it presents no difficulty; however, in case of a foreign party or those resident aborad, the Court in India will necessarily have to tread carefully in issuing an anti-suit injunction as in such circumstances it will have to base it on the principle of sufficiency of connection in the context of appropriateness of the forum. Courts in India will have to be even more circumspect where the foreign party has already instituted an action in a foreign court. An Indian Court will necessarily bear in mind if summons are issued outside territorial jurisdiction of Indian Courts, it may not be complied with or, that the foreign party may attempt to seek remedy in the jurisdiction of the court where it is resident.”
Further, in (India T.V.) Independent News Service Pvt. Ltd. vs. India Broadcast Live LLC & Ors.3 the Hon’ble Delhi High Court held that while deciding an application for anti-suit injunction, held that “factors such as convenience of parties, expenses involved and law governing the transaction are important while determining the appropriate forum”.
However, there have been instances wherein the Courts have refused to grant anti-suit injunction orders, and the Supreme Court has also observed that grant of antisuit injunction should be granted sparingly and not as a matter of routine and that before passing the order of anti-suit injunction, courts should be very cautious and careful.
In another instance, the High Court of Calcutta in Rotomac Electricals Pvt. Ltd. vs. National Railway Equipment Company5, while refusing to grant anti suit injunction, the Hon’ble Court observed that “when two parties to a contract belong to two different countries and proceedings are initiated in the country of origin of one of the parties to the contract, it cannot be said that the proceedings are initiated in a forum no convenience, if the forum is competent otherwise. When the parties to a suit belong to different countries thousands of miles away from each other, one or the other of the parties would be inconvenienced. Proceedings in India would not be convenient to the party from the United States and proceedings in United States would not be convenient for the party from India.”
Therefore, the question whether an antisuit injunction should be granted or not depends from case to case, as the facts of case may be peculiar to one but not to the other.
Tulip De is a Senior Associate Advocate in the Litigation Team at S.S. Rana & Co. She is proficient in the field of Intellectual Property and Commercial Litigation, enforcement actions including civil and criminal anti-counterfeit raids all over India. Tulip has advised and successfully filed cases for Direct Selling companies in India and is part of the team that set the litigation landscape for the direct selling industry in India. Tulip and her team have also obtained the first John Doe order in a Non-IP suit in India. Additionally, she advises clients on transactions, franchising, licensing and corporate matters.
Daljeet Dabas is a Senior Associate Advocate in the Litigation Team at S.S. Rana & Co. He has wide experience in handling and arguing matters at the Hon’ble Supreme Court of India, the Hon’ble Delhi High Court, and other courts/tribunals in the country. He has prosecuted and defended many contentious IP litigations for a number of Fortune 500 companies in India and the SAARC Region (including Sri Lanka, Nepal and Bangladesh).
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