IN THE HIGH COURT OF BOMBAY
Prithviraj K.Chavan, J.
1rm Fitness Equipment - Appellant
Versus
Priyanka Baru - Respondent
First Appeal No. 141 of 2023, Interim Application No. 1360 of 2023, First Appeal No. 141 of 2023
Decided On : 02-08-2023
REJECTION - CIVIL PROCEDURE - C.P.C, Order 7 Rule 11 - The court discussed the provisions of Order 7 Rule 11 of the Code of Civil Procedure, 1908, which allows for the rejection of a plaint if it does not disclose a cause of action. The court interpreted the distinction between non-disclosure and defective cause of action, emphasizing that the latter should be addressed during trial. The court concluded that the plaint lacked a valid cause of action for trademark infringement as the appellants did not have trademark registration at the time of filing the suit, influencing the decision to uphold the rejection of the plaint.
Fact of the Case:
The appellants filed a suit against the respondent for trademark infringement and passing off, but the respondent applied for rejection of the plaint, arguing it did not disclose a cause of action. The appellants claimed the respondent was using the term 1RM' on a website, but the respondent contended that the domain was registered to another party and that the appellants lacked trademark registration at the time of filing the suit.
Finding of the Court:
The court found that the plaint did not disclose a valid cause of action for trademark infringement or passing off, as the appellants did not have a registered trademark at the time of filing. The court emphasized that the omission of the date for the cause of action was not a mere typographical error but indicated a lack of due diligence.
Issues: Whether the plaint disclosed a valid cause of action for trademark infringement and passing off, and whether the rejection of the plaint under Order 7 Rule 11 of the C.P.C was justified.
Ratio Decidendi: The court held that the absence of trademark registration at the time of filing the suit precluded any claim for infringement. It distinguished between non-disclosure of cause of action and a defective cause of action, stating that the latter should be resolved at trial, not at the stage of plaint rejection.
Final Decision: The appeal was dismissed with costs, affirming the lower court's order rejecting the plaint.
JUDGMENT/ORDER
1. This appeal challenges an order of rejection of plaint passed under Order-7, Rule-11 of the Code of Civil Procedure, 1908 (for short "C.P.C") dtd. 27/9/2022 mainly on the ground that the plaint does not disclose cause of action.
2. Few facts germane for disposal of this appeal are summarized as below.
3. Appellants have filed a suit against respondent for alleged infringement of trademark, passing off, delivery, rendition of accounts etc. On 18/9/2021, respondent moved an application under Order-VII, Rule-11 of the C.P.C for rejection of the plaint on various grounds. However, respondent emphasized on the aspect of non disclosure of cause of action in the plaint.
4. In paragraph 12 of the plaint, appellants have averred that the respondent has developed a portal "www.1rm.in" by contending that the respondent is also trying to use the generic term "1RM" on the "www.1rm.in" website. The appellants have sought relief in the light of the business conducted through the aforesaid website. According to the respondent, she has not developed the said portal viz "www.1rm.in" and the said domain is registered in the name of Yash Sharma who is also a Proprietor of "1RM" business entity and, therefore, the appellants cannot claim the relief as prayed for.
5. It is further contended that the appellants have sought relief of "trademark infringement" in the plaint, however, admittedly the appellants did not have trademark registration over their device/logo "1RM Fitness" at the time of institution of the suit. The appellants received trademark registration on 17 th March, 2021 i.e much after the date of institution of the suit and, therefore, according to the respondent, cause of action did not exist as regards alleged trademark infringement on the date of filing of the suit.
6. It is also the contention of the respondent that even entire plaint, if read as a whole, does not disclose a valid cause of action with respect to passing off as the appellants have not pleaded any form of "deception", and/or "misrepresentation" in the plaint against the respondent which are essential elements to constitute the tort of "passing off ".
7. I heard learned Counsel for the appellants and the respondent.
8. Counsel for the appellants, while pointing at para 18 of the plaint submits that a blank space in the said para meant for stating as to when the cause of action first arose to file a suit was a typographical error. Paragraph 18 of the plaint is reproduced below;
<WXY>"18. Plaintiff state that cause of action for filing present suit firstly arose on ---- when Plaintiff was mistakenly tagged in one of the Facebook post by Defendant thereby marketing under the brand- "1RM". It further arose when Plaintiff got knowledge that Defendant made application to Trademark Registry for registration of mark - "1RM". It further arose on 12/9/2020 when Plaintiff filed Oppositions/Objection to the Trademark Registry. Cause of action further arose on 14/9/2020 when Plaintiff issued legal notice to Defendants thereby directing them to refrain the use of impugned mark. However, Defendants have still continued to use the impugned mark. Therefore, cause of action is continuously arising thereafter".
The Counsel argues that the plaint ought not to have been rejected only on the ground that there is an omission to mention as to when the cause of action first arose. In support of his contention, he placed reliance on a judgment of the Hon'ble Supreme Court in the case of Jageshwari Devi and others Vs. Shatrughan Ram, in Civil Appeals No.1456 and 1457 of 2022. Paragraph 4 of the said judgment is extracted below;
"4. It is relevant to state that there is a difference between the non-disclosure of a cause of action and defective cause of action: while the former comes within the scope of Order 7 Rule 11, the latter is to be decided during trial of the suit. The contention raised on behalf of the Appellant that the cause of action disclosed is vague and incomplete, i
A plaint can be rejected under Order 7 Rule 11 of the C.P.C if it does not disclose a cause of action, and the absence of trademark registration at the time of filing negates claims of infringement.
The main legal point established in the judgment is that the test for exercising the power under Order VII Rule 11 of C.P.C. is whether the plaint discloses a cause of action, and the court cannot em....
To establish trademark infringement, the plaint must demonstrate use 'in the course of trade'; mere display of a mark without commercial activity does not satisfy this requirement.
Each act of trademark infringement constitutes a fresh cause of action, allowing the aggrieved party to file a new suit for ongoing violations.
Point of Law : Trial Court would be justified in putting an end to vexatious, frivolous, meaningless and sham litigation. But this power may be exercised only where the plaint clearly discloses no ca....
A cause of action for trademark infringement requires actual use of the mark, not merely an application for registration.
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