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Interstate Transfer of Suit in Patent Infringement dispute

The case at hand involves patent litigation between FMC and NATCO, encompassing multiple legal fora including the High Court of Delhi and the District Court in Chandigarh. Here I aim to provide a detailed analytical examination of the legal implications and rationale behind the transfer of suits from the District Court to the High Court of Delhi by the Hon'ble Supreme Court of India.

FMC initiated patent infringement suits against NATCO before the High Court of Delhi, with NATCO responding by filing counterclaims. Subsequently, FMC filed three additional suits against NATCO before the District Court in Chandigarh, leading to a fragmented legal landscape with parallel proceedings in different jurisdictions. Complicating matters further, the suits involved overlapping claims pertaining to the same patent, IN298645, with a concurrent revocation petition regarding claim No.12, which was also subject to the suits before the District Court.

Legal Analysis:
The central issue before the Supreme Court was the consolidation of litigation concerning the same patent and involving identical parties across multiple forums. The court recognized the potential for conflicting judgments, inefficient adjudication, and forum shopping inherent in such a scenario. Therefore, the court invoked its inherent jurisdiction to transfer the suits from the District Court in Chandigarh to the High Court of Delhi to ensure judicial efficiency, consistency, and avoidance of multiplicity of proceedings.

The Supreme Court's decision to transfer the patent infringement suits from the District Court in Chandigarh to the High Court of Delhi exemplifies a judicious exercise of judicial authority to promote efficiency, consistency, and fairness in multi-forum litigation. By prioritizing the principles of jurisdictional unity, avoidance of forum shopping, patent law consistency, and judicial efficiency, the court advanced the interests of justice and upheld the integrity of the legal process.

The Case Discussed:
Case Title: Daiwa Pharmaceuticals Co Ltd. Vs Daiwa Pharmaceuticals Pvt. Ltd.
Judgment/Order Date: 16.04.2024
Case No: Comm IP Suit No. 82 of 2023
Neutral Citation: 2024:BHC:OS:6232
Name of Court: Delhi High Court
Name of Hon'ble Judge: R.I.Chagla,H.J.

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor - Patent and Trademark Attorney
Email: [email protected], Ph no: 9990389539

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