Neeraj Sharma

Assistant Professor
School of Law
 Prodigy Electronics Ltd is a Hong Kong based
company.
 It engaged in the business of trading
electronic goods particularly in Printed Circuit
Board (PCB).
 Mr. Laxman prasad was working for Prodigy
Electronics Ltd since July 22, 2002 till
December 20, 2004.
 He entered in an employment contract with
the Prodigy Electronics Ltd on October 2,
2003 and subsequently he is shifted to India
on September 13, 2004.
 Mr.Laxman Prasad has joined another
company Multi Circuit Board (CHINA) Ltd.,
one of the supplier companies to Prodigy
Electronics Ltd
 Laxman Prasad attended a Trade Fair in Delhi
(Componex/Electronic India, 2005) which was
held between February 1, 2005 to February 4,
2005 at Pragati Maidan, New Delhi.
 Prodigy Electronics Ltd., alleged that
Mr.Laxman Prasad has breached the contract
entered on September 13, 2004
 He has used goodwill and passed on the
tradename 'Prodigy' during the Trade fair in
Delhi.
 He has also registered a domain name
'www.prodigycircuits.com'.
 Permanent and mandatory injunction against
the defendant(Mr.Laxman Prasad)
 Damages by ordering rendition of accounts
 Interim injunction restraining the defendant
from using the name 'Prodigy‘, 'Prodigy
Circuit' or any other identical or deceptively
similar name
 Prodigy Ltd also asked for order restricting
laxman prasad from passing off any such
identical or deceptively similar trade mark or
trade name.
 There was an agreement between the
plaintiff-Company and the defendant
 By which exclusive jurisdiction was granted to
Courts in Hong Kong
 Jurisdiction of all other Courts had been
ousted
 On that ground also Delhi Court had no
jurisdiction in the matter.
 Delhi High Court considered the application
of the Mr.Laxman Prasad and dismissed it
holding that the agreement did not take away
jurisdiction of the Court as contended by him
and the application had been filed only with a
view to delay the progress of the suit which
was liable to be dismissed and it was
accordingly dismissed with costs of Rs.4,
000/-.
 Issues in SC
Whether Delhi High Court has jurisdiction to
entertain the civil suit considering the
agreement between Mr. Laxman Prasad and
Prodigy Electronics Ltd which specifically
confers jurisdiction to Hong Kong Courts?
 The Honorable Supreme Court of India held
that Delhi High Court has jurisdiction to
entertain the suit.
 The Honorable Supreme Court of India
observed that 'cause of action' and
'applicability of law' are two distinct, different
and independent things and one cannot be
confused with the other.
 The Court observed that territorial jurisdiction of
a Court, when the plaintiff intends to invoke
jurisdiction of any Court in India, has to be
ascertained on the basis of the principles laid
down in the Code of Civil Procedure. Since a part
of 'cause of action' has arisen within the local
limits of Delhi that is using goodwill and passing
off the tradename 'Prodigy' during the Trade fair
has happened in Delhi, therfore the High Court of
Delhi has the Jurisdiction.

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