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2025 Supreme(Kar) 221

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
V. KAMESWAR RAO, ACJ, C.M. JOSHI, J.
Global IEEE Institute For Engineers, A Private Limited Company - Appellant
Versus
IEEE Mumbai Section Welfare Association - Respondent
Commercial Appeal No. 181 of 2025, Commercial Appeal CR No. 3 of 2025
Decided On : 02-07-2025

Advocates:
Advocate Appeared:
For the Appellants : Dhyan Chinnappa, Lavanya B. Ananth, Samruddhi Chothani, Anuraag Iyer Pradip, Mohammed Shameer
For the Respondents: Pradeep Nayak, Aditya Chatterjee, Y. Sankeerth Vittal, Ajay Suresh

The court clarified that the provisions of consent under the MPT Act do not apply to cases where a legal entity seeks to enforce its contractual rights, allowing the suit to proceed despite prior user claims of the trademark.

Headnote:(A) Trademarks Act, 1999 - Sections 50 and 53 - Maharashtra Public Trusts Act, 1950 - Suit dismissed for not obtaining consent from Charity Commissioner for public trust matters - Court held that the plaintiff lacks the standing to sue since it does not qualify as a 'person having interest' in the trust - The agreements fundamentally concern breach of contracts and do not solely invoke trademark infringement - The cause of action cannot be dismissed entirely based on one barred relief - The suit is restored for adjudication. (Paras 1, 2, 12, 51-56)

(B) Public Trust Administration - Criteria for determining 'person having interest' under the MPT Act - A wider interpretation allows for legal entities to qualify; thus, the trial Court erred in excluding the plaintiff's rights. (Paras 18-26)

Facts of the case:
The plaintiff appeals against a trial court decision rejecting its plaint due to lack of cause of action and the need for Charity Commissioner consent regarding public trust. The relationship from agreements executed between the parties and their obligations under both the MPT Act and trademark regulations is central. The defendant claims prior use of the trademark. Details of the plaintiff being a licensed user and obligation for compliance after termination of agreement are significant. Court's findings noted that plaintiff’s interests revolve around contractual obligations rather than trust administration.

Findings of Court:
The trial Court's rejection of the plaint was unwarranted; hence the suit is restored for further proceedings. The plaintiff's rights must be adjudged based on the contracts rather than merely the trademark issues.

Table of Content
1. notice of appeals for the ruling's reconsideration. (Para 1 , 2 , 3)
2. details of contractual agreements and obligations. (Para 4 , 5 , 6 , 7 , 8 , 9)
3. overview of interim orders and their implications. (Para 10 , 11)
4. submissions by both parties regarding their claims. (Para 12 , 13 , 14 , 15)
5. discussion on requirements under mpt act. (Para 16 , 17 , 18 , 19 , 20)
6. clarifications on definitions related to public trusts. (Para 21 , 22 , 23 , 24 , 25)
7. examining the nature of rights involved in the case. (Para 26 , 27 , 28 , 29 , 30)
8. insights into the plaintiff's interest concerning the trust administration. (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39)
9. judicial analysis on the cause of action related to trademark and contractual breaches. (Para 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53)
10. final ruling and restoration of suit. (Para 54 , 55 , 56)

JUDGMENT :

C.M. JOSHI, J.

1. Being aggrieved by the order dated 12.03.2025 passed by the learned LXXXIX Additional City Civil and Sessions Judge, Commercial Court, Bengaluru, (CCH-85) in IA No.4/2024 filed by the respondent in Commercial Original Suit No. 906/2024, the appellant- GLOBAL IEEE INSTITUTE FOR ENGINEERS, is before this Court in appeal in COMAP 181/2025. So also, the respondent-IEEE MUMBAI SECTION WELFARE ASSOCIATION, has filed an appeal in COMAP CR 3/2025 seeking to set aside the said order in sofar as it fails to hold that the Commercial suit is barred under the Trademarks Act, 1999 and that the respondent has no cause of action to institute the Commercial Suit and consequently allow I.A.No. 4/2024 filed under Order VII Rule 11 read with Section 151 of CPC, 1908 in its entirety.

2. The factual aspects of the case as may be found in the plaint are summarized as below:

(A) The plaintiff is a Private Limited Company having its registered Office at Bengaluru and it is a second tier subsidiary partially owned by IEEE Asia Pacific Limited and IEEE Worldwide Limited, both of which are wholly owned by the Institute of Electrical and Electronics Engineers, Inc., (IEEE). The IEEE Asia Pacific Limited is domiciled in Singapore and was registered on 04.01.1994. IEEE Worldwide Limited, is incorporated in the State of New York on 17.07.2013. The parent entity of both these subsidiaries was incorporated at New York on 16.03.1896. All the companies are not-for-profit companies.

(B) The IEEE, the parent Company, is the World’s largest Professional Organization engaged in fostering technological innovation and excellence and was designed to serve professionals involved in all aspects of Electrical, Electronic and Computing fields and related to areas of Science and Technology. They have publications, organize conferences, set up technology standards and are engaged in professional and educational activities.

(C) On 13.07.1976, the defendant was established as IEEE Geographic Unit/Section to further the activities of IEEE Inc., in Maharashtra, Goa, Madhya Pradesh, Daman and Diu, and later such units were also established at Bengaluru and Delhi. Separate guidelines are set out in IEEE Manuals.

(D) Thereafter, the defendant was registered as a Society under the provisions of the Societies Registration Act, 1860, on 28.12.2012 and as a Public Trust under the provisions of Maharashtra Public Trusts Act, 1950 (MPT Act, for short) on 19.12.2013, having its registered office at Mumbai.

(E) On 29.08.2012, a Service Assistance Agreement came to be executed between the parties setting out the working relationship to provide professional and administrative services mentioned therein, with intention to further the objectives and goals of IEEE. Another agreement was entered into on 01.04.2013, on identical lines. These two agreements are the crux of the matters which are involved in the present lis.

(F) Under the above said agreements of the year 2012 and 2013, the parties had agreed that the plaintiff should provide professional and administrative serv

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