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2024 Supreme(Kar) 1267

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ANU SIVARAMAN, G. BASAVARAJA, JJ.
Remedi Healthcare India Pvt. Ltd., Represented Herein By Its Authorised Signatory Ramesh H.R. and Anr. – Appellants
Versus
Neurosynaptic Communications Pvt. Ltd., Represented Herein By Its Authorised Signatory Mr. Sameer S. – Respondent 
Commercial Appeal No. 264 of 2024
Decided On : 31-08-2024

Advocates Appeared:
For the Appellants :Sri. C.K. Nanda Kumar, Senior Counsel A/W. Sri. Karan Joseph, Advocate
For the Respondent:Sri. Chetan C., Advocate

The court affirmed the jurisdiction of the Commercial Court to grant injunctions under the Trade Marks Act, emphasizing the registration and prior use of trademarks while clarifying the territorial limits of such injunctions.

Headnote:(A) Trade Marks Act, 1999 - Sections 124 and 125 - Appeal against order granting temporary injunction to restrain use of trademark 'Remedi' - Suit for infringement and passing off - Registration of plaintiff's trademark proved; prior user established - Commercial Court's discretionary jurisdiction upheld; procedural irregularities not found to invalidate the order. (Paras 2, 8, 10, 11, 12, 13)

(B) Jurisdiction - Commercial Court lacks authority to grant injunction with extraterritorial application - Injunction valid only within India. (Paras 13, 14)

Facts of the case:
The appellant contested the injunction order prohibiting them from using the trademark 'Remedi', arguing lack of confusion and procedural invalidity of the plaintiff's trademark registration due to abandonment. The plaintiff established prior use and registration of the trademark.

Findings of Court:
The Commercial Court's order granting the injunction was justified; the plaintiff holds a registered trademark and prior user rights in India. The Court emphasized the need for a clear geographical scope of the injunction.

Issues: The key issues involved were the validity of the injunction due to abandonment of the plaintiff's trademark application and the jurisdiction of the Commercial Court.

Ratio Decidendi: The court affirmed that the Commercial Court acted within its jurisdiction, finding no grounds for interference; ineffective registration prior to review does not negate the plaintiff's claims while the appeal is pending.

Result: Appeal disposed of; injunction valid within the territory of India only.

Table of Content
1. initial order of injunction details. (Para 1 , 2)
2. arguments against the injunction by appellants. (Para 3 , 4)
3. plaintiff's counterarguments supporting injunction. (Para 5 , 6)
4. consideration of points for appeal. (Para 7 , 8)
5. examination of trademark validity and injunction. (Para 9 , 10 , 11)
6. negative response to points raised. (Para 12)
7. clarification on territorial limits of injunction. (Para 13)
8. disposal of appeal with no order as to costs. (Para 14)

JUDGMENT :

ANU SIVARAMAN, J.

This Commercial appeal is directed against the order dated 06.07.2024 passed on I.As.No.2, 5 and 7 in Com O.S.No.111/2024 by X Additional District and Sessions Judge (Dedicated Commercial Court) Bengaluru Rural District, Bengaluru (hereinafter referred to as "Commercial Court" for short).

2. The operative portion of order under appeal reads as follows:-

"I.A.No.2 filed by the plaintiff under order 39 Rule 1 and 2 of C.P.C is hereby allowed and an order of ad-interim temporary injunction is granted restraining the defendants, its Directors, officers, employees, agents, subsidiaries, affiliates, successors-in- interest, assigns and any other person claiming through or under them, from in any manner using the trade mark 'Remedi' and any other trademark which incorporates the plaintiff's trademark 'Remedi' or which is deceptively similar or identical to the plaintiff's trademark 'Remedi' in respect of medical and diagnostic products or services related thereto, during the pendency of the suit.

The applications (IA-5 and 7) filed by the defendants under section 124 of TRADE MARKS ACT 1999 are hereby rejected.

No order as to costs."

3. The learned senior counsel appearing for the appellants contends that the order of the Commercial Court is manifestly illegal since the appellant has a global presence and had been using the trademark 'Remedi' since 2012. It is submitted that the sophisticated medical equipment and services provided by the appellant under the trade name 'Remedi' has absolutely no connection with the test kits and services offered by the respondent/ plaintiff. It is submitted that there is no possibility of any confusion or misrepresentation since the potential purchasers of the parties are totally different and distinct and there can be no injunction granted on mere speculation. Further, it is contended that the plaintiff had suffered an order of abandonment of the application for registration of the trademark 'Remedi' under Class 10 Diagnostic apparatus for medical use and the grant of registration without recall of the abandonment order by recourse to process known to law would render the registration invalid. It is therefore contended that the application under Section 124 (1) ought to have been allowed by the Commercial Court. It is further contended that the plaintiff who approached the Court without disclosing the true facts is not entitled for the equitable relief of injunction that has been granted by the Court. It is further contended that the specific ground raised that the suit was belated was not properly considered by the Court. Finally, it is contended that even if the order is found to be valid, it cannot operate outside the territory of India, since the appellant is a company registered in Korea having global presence.

4. The learned counsel appearing for the appellants has relied on the following judgments:-

- Google LIC v. Makemytrip (India) Private Limited & Ors, by Judgment dated 14.12.2023 passed in FAO(OS) (COMM) Nos.147/2022 & 148/2022;

- Khoday Distilleries Limited (Now Known as Khoday India Limited) v. Scotch Whisky Association and Others, reported in (2008) 10 SCC 723; and

- Paramount Surgimed Limited v. Paramount Bed India Private Limited & Ors., reported in 2017 SCC OnLine Del 8728.

5. In reply, learned counsel for the respondent/plaintiff contended that the suit was one for infringement and the admitted fact was that the plaintiff had registered the trademark 'Remedi' in respect of medical d

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