The principle says a court cannot execute its own decision unless it has territorial jurisdiction over the property or the person against whom the decision is to be executed, though it can transfer the matter to a court that does have that jurisdiction. New Delhi decided a contractual dispute against X, who lives in Maharashtra and owns property in both Maharashtra and Gujarat.
Because two different courts each have valid territorial jurisdiction over X or his property, the New Delhi court's transfer is not limited to a single forum.
Therefore, the correct answer is New Delhi court can transfer the proceedings to either of the courts i.e. Maharasthra or Gujarat.
The fact that decides this question is where X, the judgment debtor, has a territorial connection, X resides in Maharashtra and also owns property there, and separately owns property in Gujarat. New Delhi itself has no such connection to X or his assets. Each option can be tested against this map of connections.
Mapping X's actual connections against each option leaves only the one that keeps both Maharashtra and Gujarat open as transferee courts.
Therefore, the correct answer is New Delhi court can transfer the proceedings to either of the courts i.e. Maharasthra or Gujarat.