Court permits GRB Dairy Foods to sue Sri Lakshmi Industries on original side, recognizing jurisdiction based on part cause of action arising within Chennai and dissemination of defamatory content to local consumers
In a significant ruling on September 17, 2026, the Madras High Court, presided over by Justice K. Govindarajan Thilakavadi, granted leave under Clause 12 of the Letters Patent for GRB Dairy Foods Private Limited to institute a defamation suit against Sri Lakshmi Industries on the original side of the court. The applicant, GRB Dairy Foods, a renowned manufacturer and marketer of ghee products under the "GRB" brand, alleged that the respondent, a competitor engaged in marketing "NG Ghee," published defamatory statements via a social media reel that tarnished its reputation and goodwill.
GRB Dairy Foods contended that the defamatory reel was disseminated through the respondent's website and social media platforms, including Instagram, reaching consumers within Chennai, where the applicant's products are extensively marketed and sold. The court acknowledged that although the applicant's business presence in Chennai alone may not suffice for jurisdiction, the combined factors of the local marketing of the products and the targeted dissemination of the defamatory content to the consuming public in Chennai establish a part of the cause of action within the court's jurisdiction.
Clause 12 of the Letters Patent allows suits to be instituted on the original side of the Madras High Court if any part of the cause of action arises within the local limits of the court's ordinary original jurisdiction, other than suits relating to immovable property. The court found the applicant's pleadings sufficient to meet this threshold, granting leave to proceed with the suit, which seeks a permanent injunction restraining further publication of the defamatory reel, mandatory removal of the material, and damages for loss of reputation.
This decision underscores the court's recognition of the impact of digital and social media publications on local businesses and affirms the jurisdiction of the Madras High Court to entertain suits where a defamatory publication reaches the consuming public within its territorial limits.
Bottom Line:
Leave under Clause 12 of the Letters Patent can be granted for instituting a suit on the original side of the court if a part of the cause of action has arisen within the court's jurisdiction and the alleged defamatory publication has reached the consuming public within the jurisdiction.
Statutory provision(s):
Letters Patent, Clause 12
GRB Dairy Foods Private Limited v. Sri Lakshmi Industries, (Madras) : Law Finder Doc Id # 2982043
