1999 (9) TMI 998 - HC - Indian Laws

Court dismisses suit for lack of jurisdiction, Order 2 Rule 2 violation, and abuse of process

The court rejected the plaint due to lack of jurisdiction, barred claims under Order 2, Rule 2, failure to disclose a cause of action for defamation, and ... - Issues Involved:1. Jurisdiction of the Court2. Declaration of Ownership and Control3. Defamation and Damages4. Abuse of Process of CourtIssue-wise Detailed Analysis:1. Jurisdiction of the Court:The plaintiffs sought a declaration and damages but the defendants argued that the Bombay High Court had no jurisdiction. The court referenced the Supreme Court's judgment in the WTCC case, which stated that the Bombay High Court had no jurisdiction over the matter as the parties involved were foreigners and the collision occurred in international waters. The court reiterated that the principle of Private International Law prevents a court from entertaining actions against foreigners not residing or conducting business within the country unless they submit to the jurisdiction. The court concluded that this principle applied to the current case, thus rejecting the plaint on the grounds of lack of jurisdiction.2. Declaration of Ownership and Control:The plaintiffs sought a declaration that they were exclusively owned and controlled by Indian shareholders and not linked to the Merali family. The court noted that the plaintiffs had already sought similar relief in Admiralty Suit No. 58 of 1998. According to Order 2, Rule 2 of the CPC, a plaintiff must include the whole of the claim in one suit, and failing to do so bars subsequent suits for omitted claims. The court emphasized that the plaintiffs should have sought leave to pursue the declaration in the present suit, which they did not. Consequently, the claim for declaration was barred, leading to the rejection of the plaint under Order 7, Rule 11(d).3. Defamation and Damages:The plaintiffs claimed that defamatory reports were published based on the New Orleans Court's findings, causing damage to their reputation. The court examined the publications and found that they were fair and accurate reports of the court's findings, thus covered by absolute privilege. The court highlighted that privileged statements made in judicial proceedings cannot be the basis for a defamation claim. Therefore, the court held that the plaint did not disclose a cause of action for defamation and rejected it under Order 7, Rule 11(a).4. Abuse of Process of Court:The court observed that the plaintiffs had engaged in multiple litigations and forum shopping, attempting to circumvent the Supreme Court's judgment. The court noted that the plaintiffs' actions were vexatious, frivolous, and an abuse of the court's process. The court emphasized that the plaintiffs were aware that the Bombay High Court had no jurisdiction and yet filed the suit to harass the defendants. The court invoked its inherent powers under Article 215 of the Constitution and Order 6, Rule 16 of the CPC to reject the plaint, condemning the plaintiffs' conduct and imposing costs.Conclusion:The court rejected the plaint on multiple grounds, including lack of jurisdiction, barred claims under Order 2, Rule 2, failure to disclose a cause of action for defamation, and abuse of the court's process. The court emphasized the need for litigants to present candid and fair statements of facts and discouraged vexatious litigation. The suit and related motions were dismissed with costs imposed on the plaintiffs.