IN THE HIGH COURT OF JUDICATURE AT BOMBAY
GS PATEL, GAURI GODSE, JJ
Kewal Ashokbhai Vasoya – Appellant
Versus
Suarabhakti Goods Pvt Ltd – Respondent
Commercial Appeal (L) No. 31992 of 2022 In Interim Application (L) No. 28715 of 2022 In Commercial IP Suit (L) No. 28710 of 2022 With Interim Application (L) No. 31993 OF 2022 In Commercial Appeal (L) No. 31992 of 2022
Decided on : 07-12-2022
Civil Procedure Code, 1908 - Order 39 Rules 1, 2, 3 - Original Defendants in Commercial Intellectual Property Suit have come in appeal against a without notice adinterim order - That order was passed on application of original Plaintiff, which is Respondent to Appeal - Held, Court see no reason to interfere with impugned order at this stage - Court have made no assessment of rival contentions on merits - Liberty or liberties reserved to defendants in appeal are preserved intact, and Defendants may avail of them in any manner contemplated by impugned order, that is to say by giving notice and moving, or opposing Plaintiff's interim application on returnable - Appeal is disposed of in these terms - In facts and circumstances of case there will be no order as to costs - However, court note that since this is a Commercial Appeal, general rule is to award costs. Instead of doing so, court set parties at liberty to seek an appropriate order of costs before learned single Judge - Disposed of.
JUDGMENT :
GS Patel, J.
1. The original Defendants in the Commercial Intellectual Property Suit have come in appeal against a without notice adinterim order dated 15th September 2022 by RI Chagla J. That order was passed on the application of the original Plaintiff, which is the Respondent to the Appeal.
2. By the impugned order, Chagla J granted a time-limited adinterim injunction and appointed a Court Receiver for a limited purpose. He also passed the necessary directions under Order 39 Rule 3 of the Code of Civil Procedure, 1908 (“CPC”). The order is operative only until 19th October 2022. Specific liberty is reserved to the Defendants to apply for a variation of the order with 72 hours prior written notice to the advocates for the Plaintiff.
3. The suit is a trademark infringement action combined with a cause of action in passing off. A Leave Petition under Clause 14 of the Letters Patent to combine the two causes of action is pending.
4. Mr Kirpekar for the Defendants in appeal says that the Plaintiff’s application could not have been granted without notice. He claims says that there is extensive suppression in the plaint, including, importantly, that the Defendant are registered proprietors of the rival mark although the registration is subsequent to that of the Plaintiff. Mr Kirpekar also says that while the Plaintiff mentioned in the plaint that it applied for cancellation of the Defendants’ mark there is ‘nothing annexed’ to the plaint.
5. There are two questions that arise for our immediate consideration since Mr Kirpekar relies on the order by one of us (GS Patel J) on 3rd August 2021 in Rizwana Abdul Aziz Farooqui and Ors v Limra Realty and Ors., Interim Application (L) No. 14556 of 2021 in Suit (L) No. 14555 of 2021. That order culls out certain principles of the law relating to applications moved without notice; specifically, the need for a fair disclosure of material particulars in the Plaint or the application for ad-interim relief without notice. The relevant portion of the Order in Rizwana Abdul Aziz was based on an order dated 7th June 2021 in Sun Pharmaceutical Industries Ltd v Emil Pharmaceutical Industries Pvt Ltd and Anr., Interim Application (L) 10937 of 2021 in Commercial IP Suit (L) No. 10928 of 2021
6. To begin with, it is necessary to clarify that the popular and widespread understanding of the expression ‘ex parte’ is misleading. Black’s Law Dictionary, 7th edition, 1999 has these definitions:
Ex parte, adj. Done or made at the instance and for the benefit of one party only, and without notice to, or argument by, any person adversely interested
An ‘ex parte injunction’ is also defined: ex parte injunction. A preliminary injunction issued after the court has heard only the moving party. (Emphasis added)
7. The CPC itself does not use this expression. What we are concerned with is an application made without notice to the other side. To put it briefly and to get this aspect out of the way, an ex parte application is one-sided, without notice to the opponent. Where a party does not appear despite notice, and therefore, by conduct, declines to present its case, such an order is not, strictly speaking, ‘ex parte’. A court can compel notice. It can compel attendance. It cannot compel argument. There are many legal situations where the word ex parte is used to mean that there is only a party without an opponent — frequently in uncontested testamentary matters, for example, where though there is no opponent, yet a court order or direction is sought. For the rest of this order, therefore, we prefer not to use this expression. Instead, we will use the phraseology of the CPC: with notice and without notice.
8. Since we are dealing with injunctions, we must first look at the provisions of Order 39 Rules 1, 2 and 3 of the CPC:
Temporary Injunctions and Interlocutory Ord
ICICI Ltd v Grapco Industries Ltd & Ors
Maria Margarita Sequeira Fernandes & Ors v Erasmo Jack De Sequeira & Ors.
Morgan Stanley Mutual Fund v Kartick Das
The duty of fair disclosure and the exceptional nature of without notice applications, emphasizing the importance of time-limited injunctions and the reserved liberty for the Defendants to apply for ....
(1) An ad interim injunction shall not be granted in derogation of right of opposite party.(2) An order passed without issuing notice to opposite party cannot be brought under purview of Section 36 C....
The court must record reasons for granting ex-parte injunction without notice, making this requirement mandatory for valid exercise of jurisdiction.
The trial Court must provide reasoned orders when dealing with applications for temporary injunctions, particularly in urgent cases, and should not simply issue mechanical orders without assessment.
“3A Where an injunction has been granted without giving notice to the opposite party, the court shall make an endeavour to finally dispose of the application within thirty days from the date on which....
An injunction obtained under misrepresentation cannot be vacated without proven suppression of material facts; established trademark rights remain effective despite prior lawsuits.
Non-compliance with the conditions of an ex parte injunction under Order 39, Rule 3 CPC renders the injunction invalid, necessitating prompt judicial action.
Non-compliance with statutory requirements for an ex parte injunction renders the order invalid, emphasizing the need for adherence to procedural mandates.
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