Mutual consent divorce - cause of action arose abroad

The court cannot dismiss the case if the petition is filed jointly by both the aprties and have decalred that they are living separately away from each other for a period of one year or more.

The cirteria for filing divorce petition is that the marriage should have been solemnised under the provisions of Hindu marriage laws in India and the parties have submitted adequate proofs to establsih this fact.

Besides the parties have declared jointly that they are living separately for a period of more than a year. 

Therefore the court cannot dismiss the divorce petition filed on the grounds of mutual consent at least for the reasons you have stated here.

If he does so then you can prefer an appeal against the dismissal order before high court 

Some vital information is missing from the post.

Consult your lawyer.

Sir, Namasthe!!

Judge is taking the point that though the disputes arose in India, as cause of action "living separately" occurred abroad....foreign court is the competent court to decide divorce and the current local court where the petitioner No.1 resides (holds aadhar and passport with this address, parents house) does not hold proper court to entertain this section 13-B HMA petition....

It is an incorrect inference of underlying law.

You may ask the court to either return the papers with the said remarks or to dismiss the case on the same grounds.

You can then prefer a revision petition for direction to trial court by instructing it observe the proper procedures of law against the remarks for returning the papers or to prefer an appeal before the appellate court against the dismissal of the case.