Forum non conveniens
4. To clarify the position with regard to forum non conveniens, a slight
digression would be in order. Black‘s Law Dictionary, 5th Edition, defines
the phrase ―forum non conveniens‖ as follows:-
―Term refers to discretionary power of court to decline
jurisdiction when convenience of parties and of justice would
be better served if action were brought and tried in another
forum. Johnson v. Spider Staging Corp., 87 Wash.2d 577, 555
P.2d 997, 999, 1000.‖
And further as:-
―The doctrine is patterned upon the right of the court in the
exercise of its powers to refuse the imposition upon its
jurisdiction of the trial of cases even though the venue is
properly laid if it appears that for the convenience of litigants
and witnesses and in the interest of justice the action should be
instituted in another forum where the action might have been
brought. Hayes v. Chicago, R.I. & P. R. Co., D.C. Minn., 79
F. Supp. 821, 824. The doctrine presupposes at least two
forums in which the defendant is amenable to process and
furnishes criteria for choice between such forums. Wilson v.
Seas Shipping Co., D.C.N.Y., 77 F.Supp. 423,424. …….‖
―The rule is an equitable one embracing the discretionary
power of a court to decline to exercise jurisdiction which it has
over a transitory cause of action when it believes that the
action may be more appropriately and justly tried elsewhere.
Leet v. Union Pac. R. Co., 25 Cal.2d 605, 155 P.2d 42,
44……‖
(underlining added)
The principle was stated by Lord Kinnear in Sim v. Robinow: (1892) 19 K.
665 thus:
―The general rule was stated by the late Lord President in
Clements v. Macaulay 4 Macph. 593, in the following terms:
'In cases in which jurisdiction is competently founded, a court
has no discretion whether it shall exercise its jurisdiction or
not, but is bound to award the justice which a suitor comes to
ask. Judex tenetur impertiri judicium suum {a judge must
exercise jurisdiction in every case in which he is seized of it}
and the plea under consideration must not be stretched so as to
interfere with the general principle of jurisprudence.' And
Therefore the plea can never be sustained unless the court is
satisfied that there is some other tribunal, having competent
jurisdiction, in which the case may be tried more suitably for
the interests of all the parties and for the ends of justice... In all
these cases there was one indispensable element present when
the court gave effect to the plea of forum non conveniens,
namely, that the court was satisfied that there was another
court in which the action ought to be tried as being more
convenient for all the parties, and more suitable for the ends of
justice."
(underlining added)
5. In Mayar (H.K.) Ltd v. Owners & Parties, Vessel M.V. Fortune
Express: (2006) 3 SCC 100, the Supreme Court quoted with approval the
explanation of the ambit of the principle of forum non conveniens for
issuing an order of stay as given by the House of Lords in Spiliada
Maritime Corpn. V. Cansulex Ltd: (1986) All ER 843 which was to the
following effect:
―(1) The fundamental principle applicable to both the stay of
English proceedings on the ground that some other forum was
the appropriate forum and also the grant of leave to serve
proceedings out of the jurisdiction was that the court would
choose that forum in which the case could be tried more
suitably for the interests of all the parties and for the ends of
justice…
(2) In the case of an application for a stay of English
proceedings the burden of proof lay on the defendant to show
that the court should exercise its discretion to grant a stay.
Moreover, the defendant was required to show not merely that
England was not the natural or appropriate forum for the trial
but that there was another available forum which was clearly
or distinctly more appropriate than the English forum. In
considering whether there was another forum which was more
appropriate the court would look for that forum with which the
action had the most real and substantial connection e.g. in
terms of convenience or expense, availability of witnesses, the
law governing the relevant transaction, and the places where
the parties resided or carried on business. If the court
concluded that there was no other available forum which was
more appropriate than the English Court it would normally
refuse a stay. If, however, the court concluded that there was
another forum which was prima facie more appropriate the
court would normally grant a stay unless there were
circumstances militating against a stay e.g. if the plaintiff
would not obtain justice in the foreign jurisdiction….‖
6. In a more recent decision of the House of Lords [Tehrani v. Secy of
State for the Home Department: [2006] UKHL 47] it was observed:-
―The doctrine of forum non conveniens is a good example of a
reason, established by judicial authority, why a court should
not exercise a jurisdiction that (in the strict sense) it possesses.
Issues of forum non conveniens do not arise unless there are
competing courts each of which has jurisdiction (in the strict
sense) to deal with the subject matter of the dispute. It seems
to me plain that if one of the two competing courts lacks
jurisdiction (in the strict sense) a plea of forum non conveniens
could never be a bar to the exercise by the other court of its
jurisdiction.‖
(underlining added)
7. Thus, the doctrine of forum non conveniens can only be invoked
where the court deciding not to exercise jurisdiction, has jurisdiction to
decide the case. The U.S. Supreme Court also held in Gulf Oil Corp. v.
Gilbert: 330 U.S. 501 that "[I]ndeed, the doctrine of forum non conveniens
can never apply if there is absence of jurisdiction or mistake of venue".
8. In this very decision (viz. Gulf Oil Corp.) the doctrine is stated as
follows:
―The principle of forum non conveniens is simply that a court
may resist imposition upon its jurisdiction even where
jurisdiction is authorised by the letter of a general venue
statute. These statutes are drawn with a necessary generality
and usually give a plaintiff a choice of courts, so that he may
be quite sure of some place in which to pursue his remedy. But
the open door may admit those who seek not simply justice
but perhaps justice blended with some harassment. A plaintiff
sometimes is under temptation to resort to a strategy of forcing
the trial at a most inconvenient place for an adversary, even at
some inconvenience to himself.‖
9. From the above discussion, it is clear that the doctrine of forum non
conveniens can only be invoked where the court deciding not to exercise
jurisdiction, has jurisdiction in the strict sense, but comes to the conclusion
that some other court, which also has jurisdiction, would be the more
convenient forum. It must also be kept in mind that the doctrine of forum
non conveniens is essentially a common law doctrine originating from
admiralty cases having trans-national implications. It is clear that the
doctrine of forum non conveniens is only available when a Court has the
jurisdiction but the respondent is able to establish the existence of another
competent court.
THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: 21.07.2016
FAO (OS) 9/2015 and CM No. 326/2015
MCDONALD’S INDIA PRIVATE LIMITED
versus
VIKRAM BAKSHI & ORS
CORAM:-
HON’BLE MR JUSTICE BADAR DURREZ AHMED
HON’BLE MR JUSTICE SANJEEV SACHDEVA