Delhi HC dismisses Sikka Motors’ plea against Hyundai India in dealership dispute

New Delhi, April 28 (SocialNews.XYZ) The Delhi High Court has dismissed the petition filed by Sikka Motors Pvt Ltd seeking to restrain Hyundai Motor India Ltd from taking any coercive actions or initiating any termination process against it over a dealership dispute, citing the lack of jurisdiction on the matter.

A bench of Justice Sanjeev Sachdeva said in the present case, Clause 12 of the agreement specifically agrees to the exclusive jurisdiction of the competent courts in Chennai.

It held that the courts at Delhi would not have the jurisdiction to entertain any proceedings arising out of the subject dealership agreement and the competent courts at Chennai alone would have exclusive jurisdiction.

"Since this court does not have jurisdiction to entertain the petition, this court would also not have jurisdiction to grant any interim protection or continue the same," the court said in the order dated April 27.

As per the plea, Sikka Motors, a dealer of Hyundai India since 2004, and the car maker had a dealership agreement initially for a period of three years, which has been renewed on the same terms and conditions from time to time and has been last renewed on August 5, 2020.

During the course of the hearing, Hyundai had objected to the maintainability of the petition and contended that the mediation should be conducted in Chennai as there was an exclusive jurisdiction of the courts in Chennai.

Without going into the question of jurisdiction, the Delhi High Court had referred the parties to mediation and directed that till further orders no coercive action shall be taken pursuant to the notice dated November 25, 2021.

Thereafter, the matter was adjourned from time to time. Mediation was not successful and the respondent filed an application seeking vacation of the interim protection as also for the dismissal of the petition.

Source: IANS