Balance of Convenience Favours Kerala: Bombay HC Refuses Metro Brands' Leave to Join Claims

The Bombay High Court has dismissed a leave petition filed by footwear giant Metro Brands Limited seeking to combine its passing off claim with a trademark infringement suit against Kerala-based Met Brands Private Limited . Justice Gauri Godse held that the balance of convenience favoured a trial in Kerala, where the alleged passing off occurred and the defendant operates.

Case Background: A Tale of Two Brands and a Jurisdictional Tangle

Metro Brands, headquartered in Mumbai, sued Met Brands in the Bombay High Court, alleging that the use of the mark ‘METBRANDS’ and ‘METBRANDS SHOES & BAGS’ infringed its registered trade mark ‘METRO’ and constituted passing off. The plaintiff invoked Section 134 of the Trade Marks Act, which allows a trademark owner to file an infringement suit where it resides or carries on business—here, its registered office in Mumbai.

However, the passing off claim arose entirely in Kerala, where the defendant operates and where Metro Brands itself runs 18 stores. To avoid separate proceedings, Metro Brands sought leave under Clause 14 of the Letters Patent to join both causes of action in Mumbai.

The Arguments: Multiplicity vs. Hardship

Metro Brands’ counsel argued that joining the claims would prevent multiplicity of litigation, relying on precedents such as Indian Performing Rights Society Ltd. v. Sanjay Dalia and Jagdish Gopal Kamath v. Lime and Chilli Hospitality Services . They contended that since the registered office is in Mumbai, Section 134(2) of the Trade Marks Act gives them the right to sue there, and Clause 14 permits joinder.

The defendant countered that it is a small Kerala-based entity with no connection to Mumbai. Forcing it to defend a passing off claim in a distant forum would cause serious hardship. The defendant also pointed out that Metro Brands itself has a substantial presence in Kerala, making that forum more convenient.

Legal Analysis: The Court’s Deliberate Examination

Justice Godse analysed the Supreme Court’s ruling in Sanjay Dalia , which clarified that Section 134(2) provides an additional forum but does not oust the ordinary jurisdictional rules under Section 20 CPC. The court noted that for passing off claims, Section 134(1)(c) does not extend the special privilege—such claims remain governed by Section 20 CPC and, for the Bombay High Court’s original side, by Clause 12 of the Letters Patent.

Crucially, Metro Brands had not pleaded that its principal place of business is only in Mumbai. The court observed that the plaintiff operates 895 stores across India, including 18 in Kerala, and the cause of action for passing off arose there. Applying the principles from Manugraph India Ltd. v. Simarq Technologies and Shree Sai Plast , the court held that the registered office is not automatically the principal place of business when the company has multiple offices.

Key Observations from the Judgment

“The place where the cause of action arises is convenient for conducting a trial as relevant witnesses, documents, transactions and other evidence are likely to be available within that jurisdiction.”

“When both prayers fall within the jurisdiction of the State of Kerala, there is no question of multiplicity of proceedings, as the plaintiff has a choice of forum.”

“The optional forum chosen by the plaintiff in the present case is not found to be justifiable for exercising the discretionary power under Clause 14 in favour of the plaintiff.”

Court’s Decision: Leave Denied, Plaintiff Given Liberty

Justice Godse dismissed the leave petition, holding that the balance of convenience clearly favoured a trial in Kerala. The court emphasised that leave under Clause 14 is discretionary and should not be granted when the chosen forum is not justified. Metro Brands was granted liberty to take appropriate steps in accordance with law—effectively inviting it to pursue its passing off claim in a competent court in Kerala.

The ruling underscores that while trademark owners enjoy a wider choice of forum for infringement suits, they cannot automatically drag passing off claims to a distant court when the cause of action and defendant are elsewhere. The decision serves as a reminder that jurisdictional privileges under the Trade Marks Act must be exercised reasonably.