IN THE HIGH COURT OF KARNATAKA
Anant Ramanath Hegde, J.
M/S Btv Kannada Private Limited – Appellant
Versus
M/S Eaglesight Media Private Limited & Ors. – Respondents
Civil Revision Petition No. 426 of 2023 (IPR)
Decided On : 07-06-2024
TRADEMARKS - INJUNCTION AND JURISDICTION - Karnataka Court Fees and Suit Valuation Act, 1958; Commercial Courts Act, 2015; Trade Marks Act, 1999 - The court analyzed the interplay between the Karnataka Court Fees and Suit Valuation Act, 1958, the Commercial Courts Act, 2015, and the Trade Marks Act, 1999, to determine the appropriate valuation for jurisdiction in a passing off action. It concluded that Section 12 of the Commercial Courts Act, 2015, governs the specified value of the subject matter in commercial disputes, overriding the provisions of the Act of 1958. The court emphasized that the plaintiff must provide a valuation that reflects the market value of the properties involved, particularly when the specified value exceeds Rs. 3 lakhs, thus necessitating the jurisdiction of a Commercial Court.
Fact of the Case:
The respondent filed a suit for injunction regarding movable, immovable, and intangible properties, which was challenged by the defendants on the grounds that the value exceeded Rs. 3 lakhs, necessitating a Commercial Court's jurisdiction. The trial court accepted the plaintiff's valuation, leading to the current appeal.
Finding of the Court:
The court found that the specified value of the subject matter must be determined under Section 12 of the Commercial Courts Act, 2015, rather than the Karnataka Court Fees and Suit Valuation Act, 1958. It ruled that the plaintiff's valuation must reflect the market value of all properties involved, particularly in light of the jurisdictional threshold of Rs. 3 lakhs.
Issues: 1. Whether the provisions of the Karnataka Court Fees and Suit Valuation Act, 1958 or Section 12 of the Commercial Courts Act, 2015 should be applied to determine the specified value of the subject matter in a suit under the Trade Marks Act, 1999? 2. Is Section 12 of the Commercial Courts Act, 2015 repugnant to the provisions of the Karnataka Court Fees and Suit Valuation Act, 1958?
Ratio Decidendi: The court held that Section 12 of the Commercial Courts Act, 2015 provides the method for determining the specified value in commercial disputes, which takes precedence over the provisions of the Karnataka Court Fees and Suit Valuation Act, 1958. The court emphasized that the specified value must reflect the actual market value of the properties involved, particularly when the jurisdictional threshold is exceeded.
Final Decision: The Civil Revision Petition was allowed in part, setting aside the trial court's order and returning the plaint to the plaintiff to present it before the appropriate Commercial Court, ensuring compliance with the requirements of the Commercial Courts Act, 2015.
ORDER
Anant Ramanath Hegde, J.
In a suit for injunction, alleging passing off under the Trade Marks Act, 1999, can the 'specified value' of the subject matter of the suit, be determined applying Section 50 of the Karnataka Court Fees and Suit Valuation Act, 1958 is the question that needs to be answered in this petition.
2. Respondent in this appeal filed the suit for an injunction in respect of movable, immovable as well as intangible properties. In the said suit filed before the City Civil Court at Bengaluru, defendant No.3 filed a memo to reject the plaint on the premise that the value of the properties exceeds Rs. 3 lakhs, as such, only the designated Commercial Court can try the suit and the suit is not maintainable before the City Civil Court.
3. The Court dismissed the memo vide order dated 03.09.2022. CRP No.545/2022 was filed challenging the said order, this Court vide order dated 13.12.2022 directed the plaintiff to estimate the "specified value" as per Section 12 of the Commercial Courts Act, 2015 (for short 'Act of 2015').
4. After the disposal of CRP No.545/2022, the plaintiff filed I.A.No.13 valuing only the relief sought over the intangible property at Rs.2,50,000/-without valuing movable and immovable properties. Defendants No.2 to 4 opposed the application and insisted on valuing the movable and immovable properties. The Trial Court accepted the plaintiff's valuation. Aggrieved by the aforementioned order dated 27.02.2023, defendant No.2 is before this Court.
5. Learned Senior counsel Sri. Ashok Harnahalli and Sri D.R. Ravishankar appearing for the petitioner would contend that the suit is filed for an injunction in respect of the movable, immovable as well as intangible properties. Under Section 12 of the Act of 2015, the plaintiff must provide the market value of all the properties described in the plaint; in CRP No.545/2022, this Court has directed the plaintiff to provide the 'specified value' of the properties as per Section 12(1)(b), (c) and (d) of the Act of 2015. Since the valuation of movable and immovable properties which exceed Rs. 3 lakhs is not provided, as ordered, the plaint is to be rejected.
6. Learned Senior counsel Sri. K.N. Phanindra appearing for the 1st respondent would contend that the plaintiff is the dominus litus and the plaintiff is entitled to 'value the relief' and need not value the property as the relief claimed is injunction simpliciter. Elaborating on the point, it is urged that Section 50 r/w Section 26(c) of the Act of the Karnataka Court Fees and Suits Valuation Act 1958 ('Act of 1958' for short) would apply, as such the valuation for jurisdiction and the Court fee would be the same and there cannot be two different valuations.
7. Learned Senior counsel for respondent No.1 further submits that the subjects mentioned in Entry No.11A in List-III of VII Schedule of the Constitution of India confers the power on the Parliament as well as the State Legislature to pass laws relating to the jurisdiction of the Court. In terms of the Act of 1958, the State Legislature has passed the laws relating to the jurisdiction of the Court. If there is inconsistency in the methodology adopted to determine the jurisdiction of the Court under the Act of 2015 and Act of 1958, as the Act of 1958 has received the President's assent under Article 254(2) of the Constitution of India, the same will prevail over the Act of 2015 to the extent of repugnancy. Thus, the suit valuation has to be under the provisions of the Act of 1958. The plaintiff need not provide a valuation of the property under Section 12(1)(b) and (c) of the Act of 2015 as those provisions are repugnant to the provisions of the Act of 1958 governing the valuation for jurisdictional purpose. Thus, the plaintiff is required to furnish the valuation of the relief as provided under Section 12 (d) of the Act of 2015.
8. Learned Senior counsel in support of his submission, has relied on the following judgments:
(i) Mrs. Soni Dave v. M/s Trans Asian
Bharat Bhushan Gupta v. Pratap Narain Verma & Another (2022) 8 SCC 333
For a suit to be considered a commercial dispute, it should meet both the requirements of falling within the definition of a commercial dispute and having a specified value of more than Rs. 3 lakhs. ....
The valuation of IPR suits should not be presumed to be undervalued, and the issue of undervaluation should be evaluated based on the facts of each case.
The valuation of the suit at the time of filing determines the jurisdiction of the Court, and the interest amount is undetermined until the suit is heard and decreed.
The court established that disputes arising from license agreements for properties used exclusively for trade qualify as commercial disputes under the CC Act.
The court established that the valuation of a suit must adhere strictly to the provisions of the Tamil Nadu Court Fee and Suit Valuation Act, and that any attempt to manipulate the valuation to gain ....
The nature of relief determines the court fee payable, and the plaintiff has the discretion to value the suit according to its own estimation, unless it is found to be fixed arbitrarily and with mala....
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