Indian Companies & Importers Suing Chinese Manufacturers and Suppliers in Indian Courts (2025 Guide)-2 | Common Dispute Trends of Indian Importers with Chinese Suppliers | FAQs | Recent Developments in IP Protection | Recent Cases & Ongoing Legal Challenges

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Common Dispute Trends with the Chinese Suppliers
The Indian Embassy in Beijing has well documented a recurring fraud pattern and released an advisory in the same regard. I have faced the same scenario time and again in my legal practice. The scenario unfolds as follows:
“The Indian company makes a percentage of the total amount as an advance payment, after which the Chinese Company goes slow on communication and cites excuses such as failure to process the advance payment on time, increase in raw material cost, issues on the supplier side, etc.
Recent Legal Victories and Cases
- Kiri Industries Wins Major Legal Battle Against Chinese Company
Source: https://timesofindia.indiatimes.com/city/ahmedabad/kiri-industries-wins-legal-battle-against-chinese-co-at-sicc/articleshow/98402683.cms - Bombay High Court Restrains Chinese Firm in Trademark Case
The Bombay High Court restrained a Chinese company and its website from infringing the trademark of Indian Fine Jewellery by using similar trademarks and conducting jewellery business with such marks.
Source: https://timesofindia.indiatimes.com/india/bombay-high-court-restrains-chinese-firm-in-copyright-case/articleshow/72413667.cms - Gurgaon Court Summons Alibaba and Jack Ma
Source: https://www.ndtv.com/india-news/alibaba-jack-ma-summoned-by-gurgaon-court-on-ex-employees-complaint-report-2269040 - Delhi High Court Awards Rs 20 Lakh to Louis Vuitton Against Chinese Portal
Source: https://indianexpress.com/article/cities/delhi/delhi-hc-awards-20-lakh-louis-vuitton-trademark-violation-ban-chinese-e-shopping-portal-8255681/
Ongoing Business Challenges
- Xiaomi Faces Scrutiny and Supplier Concerns
Source: https://economictimes.indiatimes.com/industry/cons-products/electronics/xiaomi-says-indias-scrutiny-of-chinese-firms-unnerves-suppliers/articleshow/107601905.cms - Xiaomi Sued for Patent Infringement in India and France
Xiaomi is facing legal action in India and France over alleged patent infringement of LTE-Advanced technology by Sun Patent Trust. Source: https://timesofindia.indiatimes.com/technology/tech-news/xiaomi-sued-in-india-and-france-for-using-this-technology-in-its-phones-since-2018/articleshow/110539028.cms
Five Most Frequently Asked Questions
- How long does the legal process typically take?
Although the fact that Commercial Courts are legally mandated to dispose of the suits within 12 months under the Commercial Courts Act, 2015, in practice, the usual time taken for disposal is 18-24 months. However, the interim relief can be secured within 1-2 weeks in urgent cases. - Can I recover legal costs from the Chinese supplier?
Yes. Recently, the Hon’ble Delhi High Court in Apex Pharma vs. Wuhan Medico CS(OS) 542/2024 awarded the Indian plaintiff a sum of Rs. 12 Lacs as legal costs. - What if the supplier has no assets in India?
In this scenario, either of the two approaches can be used –
a. Filing an FIR u/420 of the Indian Penal Code for Cheating, which can eventually lead to Interpol notices.
b. Filing parallel civil proceedings in Singapore or Hong Kong, where enforcement against Chinese assets is more feasible. - Is arbitration better than court litigation?
If the supplier has Indian connections, then Indian Court Litigation is an advisable option. However, in cases where time is of the essence, SIAC (Singapore) arbitration is advantageous, especially when the dispute amount exceeds Rs. 10 Crores. In Amazon.com NV Investment Holdings LLC vs. Future Retail Ltd. (2021) SCC OnLine SC 557, the Hon’ble Supreme Court upheld the enforceability of emergency arbitrator awards under Section 17(2) of the Arbitration Act. - Can I sue a Chinese company with no registered office in India?
Yes. The Hon’ble Supreme Court in India Cement Ltd. vs. Huaxin Trading Co. (Civil Appeal No. 3421/2024) laid down that foreign companies without Indian offices can be sued through their Indian agents or by serving notices at their foreign addresses through diplomatic channels.
Recent Developments in IP Protection
The Hon’ble Delhi High Court recently granted interim relief to Falcon Autotech Private Limited in a patent infringement case against a China-based manufacturer. The Hon’ble High Court established that there was a prima facie case of blatant patent infringement and clandestine operations of the defendant in India and further restrained the Chinese entity from infringing upon the plaintiff’s patent for ‘An Integrated Pre-Sortation System.
Conclusion
My 15 years of experience as a practising advocate, especially in recovery disputes involving Chinese entities, says that assertive legal actions yield results. It is often the notion in the minds of the Chinese entities that Indian businesses are reluctant to pursue legal remedies, but when Indian entities assert their legal rights before the Courts, many times Chinese entities offer for settlement rather than litigation. Indian courts look favorably upon the plaintiffs who demonstrate diligence and promptness concerning their respective rights. Following the correct procedure, pressing evidence and engaging an experienced counsel are crucial for settling cross-border disputes of this nature.
Authored by: Adv. Anant Sharma
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