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2024 Supreme(Kar) 171

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ANANT RAMANATH HEGDE, J.
Varun Chopra, S/o Sri Chander Sheel Chopra – Appellant
Versus
Shyam Sunder Chopra And Sons Huf, Trading As Shyam Traders – Respondent
Regular First Appeal No. 1735 of 2023 (IPR)
Decided on : 28-03-2024

Advocates:
Advocate Appeared:
For the Appellant :SRI PUNEET YADAV, ADVOCATE FOR MS. DEEPA J, ADVOCATE
For the Respondent: SRI VENKATESH R BHAGAT, ADV.

Headnote:

Section 134 - Territorial Jurisdiction - Trade Marks Act, 1999 - Section 134 - Code of Civil Procedure - Section 20 - [Section 134 of the Trade Marks Act, 1999] - The court discussed the scope of Section 134 of the Trade Marks Act, 1999 and its interplay with Section 20 of the Code of Civil Procedure. It emphasized the criteria for determining territorial jurisdiction based on the residence or place of business of the defendant, cause of action, and the plaintiff's choice of forum. The court also highlighted the interpretations of these provisions in relevant judgments and their impact on the jurisdiction of the court.]

Fact of the Case:

The plaintiffs filed a suit for injunction alleging infringement of trade mark and also restraint orders to restrain the defendants from passing off. The defendants invoked Order VII Rule 11 of the Code of Civil Procedure to reject the plaint on the premise that the City Civil Court in Bengaluru has no territorial jurisdiction to entertain the suit. The Trial Court allowed the application to reject the plaint on the premise that it has no territorial jurisdiction to entertain the suit.

Finding of the Court:

The Court analyzed the scope of Section 134 of the Trade Marks Act, 1999 and its interplay with Section 20 of the Code of Civil Procedure. It found that the jurisdiction of the Court is linked to the residence or the place of business or work of the defendant or the cause of action. The Court also emphasized the plaintiff's choice of forum and the interpretations of relevant judgments in determining the territorial jurisdiction.

Issues: The main issue was whether a suit falling under Section 134 of the Trade Marks Act, 1999 can be instituted in a Court where neither the plaintiff nor the defendant resides or carries on business or personally works for gain within the territorial jurisdiction of the Court where the cause of action has arisen.

Ratio Decidendi: The Court held that the jurisdiction of the Court is linked to the residence or the place of business or work of the defendant or the cause of action. It emphasized the plaintiff's choice of forum and the interpretations of relevant judgments in determining the territorial jurisdiction.

Final Decision: The appeal was allowed, the impugned judgment and decree were set aside, and the suit was restored to file on the file of XVIII Additional City Civil Judge, Bengaluru.

JUDGMENT :

Whether a suit falling under Section 134 of the Trade Marks Act, 1999, (for short Act of 1999) can be instituted in a Court, where neither the plaintiff nor the defendant resides or carries on business or personally works for gain within the territorial jurisdiction of the Court where the cause of action has arisen is the question that has come up for consideration.

2. The plaintiffs filed a suit for injunction alleging infringement of trade mark and also restraint orders to restrain the defendants from passing off.

3. Admittedly, the plaintiffs are residing in Uttar Pradesh. Defendants No.1, 2, and 5 are residing in Uttar Pradesh and the rest of the defendants are in Haryana. None of them is having any branch office within the territorial jurisdiction of the City Civil Court, Bengaluru where the suit is instituted.

4. In this background, the defendants invoked Order VII Rule 11 of the Code of Civil Procedure (for short 'Code') to reject the plaint on the premise that the City Civil Court in Bengaluru has no territorial jurisdiction to entertain the suit. The plaintiffs opposed the said application. The Trial Court allowed the application to reject the plaint on the premise that it has no territorial jurisdiction to entertain the suit.

5. Sri. Puneeth Yadav, the learned counsel appearing for the plaintiffs/appellants, would submit that the impugned order ignores Section 20(c) of the Code. It is urged that the cause of action to file the suit arose in Bengaluru as the plaintiffs' registered trade mark is infringed in Bengaluru and the defendants are passing off the plaintiffs' trade mark in Bengaluru.

6. Learned counsel appearing for the appellants would place reliance on the following judgments:

(ii) Dashrath Rupsingh Rathod vs. State of Maharashtra and Another (2014) 9 SCC 129

(iii) Burger King Corporation vs. Techchand Shewakrawani & Ors. 2018 SCC online Del 10881

(iv) Machinenfabrik Reiter AG and Another vs. Tex Tech Industries (India) Private Limited and Another 2021 SCC online Del 1825

(v) Copenhagen Hospitality and Retails and Others vs. A.R. Impex and Others 2021 SCC online Del 3899

7. Sri. Venkatesh R. Bhagath, the learned counsel appearing for the defendants/respondents would contend that the suit is governed by Section 134 of the Act of 1999. Admittedly none of the defendants resides or carries on business or works for gain within the jurisdiction of the Court where the suit is filed. Since the suit is filed invoking Section 134 of the Act of 1999, a suit can be filed only in any of the three places namely,

    (a) where the plaintiff has a principal office;

or

(b) where any one of the defendants resides, carries on business, or works for gain;

or

(c) any one of the defendants has a subordinate office and the cause of action has also arisen in the place where any one of the defendants is having a subordinate office.

8. Learned counsel for the respondents has relied upon the following judgments:

    (i) Indian Performing Rights Society Limited vs. Sanjay Dalia and Another (2015) 10 SCC 161

(ii) Ultra Home Construction Private Limited vs. Purushottam Kumar Chaubey and others 2016 SCC Online Delhi 376

(iii) M/s Unilever Australasia vs. M/s Shingar Cosmetics Private Limited and others 2010 SCC Online Kar 222

(iv) Manugraph India Ltd vs Simarq Technologies Pvt. Ltd. and others 2016 SCC Online Bom 5334

9. The contentions raised call for an examination of the scope of Section 20 of the Code and Section 134 of the Act of 1999.

10. Section 20 of the Code reads as under:-

    20. Other suits to be instituted where defendants reside or cause of action arises.—

Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction—

(a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally

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