IPR Suits Below Rs. 3 Lakhs Threshold To Be Listed First Before District Judge (Commercial) To Determine Whether Valuation Is Deliberately Undervalued: Delhi HC

[06 June 2022] The Delhi High Court has held that in a case where a plaintiff values an IPR suit in the city district courts below the threshold of Rs.3 lakhs, such suits would be listed before the District Judge (Commercial) first in order to determine as to whether the valuation is arbitrarily whimsical or deliberately undervalued. Justice Pratibha M Singh added that it would be mandatory for IPR suits to be ascribed a ‘specified value’, in the absence of which the valuation of the suit below Rs.3 lakhs would be arbitrary, whimsical and wholly unreasonable. “This Court is cognizant of the fact that the valuation of intellectual property is by itself a very complex process. It is clarified that the Commercial Court is not expected to value the specific IP on the basis of any mathematical formulae but to broadly take into consideration whether the said IP would be worth more than Rs. 3 lakhs, which is the threshold for the Commercial Court to exercise jurisdiction,” the Court said.