The Division Bench said that the single-judge had erred in granting the injunction just because the appellant firm happened to be a subsidiary of Advantage Strategic Consulting Private Limited based in Chennai.
The Court further said the Supreme Court had held several times that a subsidiary must be considered as a distinct entity in relation to its transactions.
“Therefore, we are convinced that the appellant, a foreign company, even though fully owned by the 1st defendant is not amenable to the jurisdiction of this court…The judgment of the learned single judge cannot be approved for the simple reason that he has simply presumed that the appellant is amenable to the jurisdiction of this court as it is a subsidiary of the 1st defendant, an Indian company,” it said.
On the issue of jurisdiction, it noted,
“This Court cannot decide whether the Singapore High Court has jurisdiction or 1st respondent is amenable to the jurisdiction of Singapore Court in a suit which is filed in a court which does not have inherent jurisdiction to decide the jurisdiction of a foreign Court.”
Source: Barandbench
