In Brief
Minority shareholders of a Dubai-incorporated company filed a derivative suit in the Madras High Court seeking a declaration that their company held beneficial interest in shares of an Indian health insurance company registered in other shareholders' names. The Supreme Court dismissed the appeals, holding that despite the shares being held by an Indian company with registered office in Chennai, the real dispute fundamentally concerns inter se affairs of the foreign company and its shareholders. Since all parties involved—the plaintiffs, the defendants, the beneficial owner, and the disputes themselves—are governed by Dubai law and based in Dubai, the Madras High Court lacked territorial jurisdiction. The appropriate forum is Dubai, where the foreign company is incorporated and where its shareholders should resolve their disputes under applicable law.
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