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2023 Supreme(Cal) 1514

IN THE HIGH COURT AT CALCUTTA
Krishna Rao, J.
Khaitan India Limited – Plaintiff
Versus
Khaitar Industries Private Limited and Others – Defendants
IA No. GA 6 of 2023, CS No. 155 of 2020
Decided On : 13-09-2023

Advocates:
Advocate Appeared:
For the Plaintiffs : Imtiaz Ahmed, Sourajit Dasgupta, Rajesh Upadhyay, Ghazala Firdaus
For the Defendants : Subhasish Sengupta, Balarko Sen, R. Das, Avirup Chatterjee, Shantanu Guchait

Headnote:Section 28(3) of the Trade Marks Act and Clause 14 of the Letters Patent, 1865 were analyzed in the context of trademark infringement and passing off. The plaintiff sought a permanent injunction against the defendants for infringing its trademark ‘KHAITAN’. The defendants contended lack of jurisdiction and maintainability, arguing that the actions arose outside the court's purview. The court found that the claims of passing off and infringement were closely linked and thus, permitted joinder under Clause 14. The crucial issue was whether the court had jurisdiction to combine causes of action. The court stated, ‘...the ultimate issue for the decision ... would be the factum of prior use of the mark by the plaintiff...’.

Result: IA GA No. 6 of 2023 is dismissed; plaintiff granted leave to unite causes of action.

Table of Content
1. court assesses jurisdiction for trademark suit. (Para 1 , 2)
2. arguments on jurisdiction and maintainability. (Para 3 , 4 , 5)
3. defendants' claims regarding trademark registration. (Para 6 , 7 , 8)
4. plaintiff's argument for passing off. (Para 10 , 11)
5. court analysis of clause 14 for joining actions. (Para 12)
6. final decision on the suit and leave granted. (Para 14 , 15)

JUDGMENT :

Krishna Rao, J.

1. The defendants have filed the present application praying for framing of preliminary issue:

    “Whether this Court has territorial jurisdiction to entertain, try and determine the present suit?”

2. The plaintiff has filed the suit against the defendants, for permanent injunction, restraining the defendants and each of them, their servants, agents, assigns, distributors, stockists and dealers from in any way or any manner infringing the plaintiff's trademark “KHAITAN” or any other words identical or deceptively similar to the trademark of the plaintiff.

3. Learned Advocate representing the defendants submitted that the defendants are carrying on business outside the jurisdiction of this Court and admittedly the defendants are not selling the product having trademark “KHAITAR” within the jurisdiction of this Hon'ble Court. He submits that as per the averments made in paragraph 52 of the plaint, the plaintiff has pleaded that the defendants are selling products having mark of “Khaitar” in and around Hyderabad and Telangana which is outside the jurisdiction of this Court and the plaintiff has also pleaded that the acts of passing off has been committed and is continuing to be committed outside the jurisdiction of this Court.

4. Learned Advocate for the defendants submitted that the plaintiff has pleaded that the cause of action of the plaintiff relating to passing off has arisen outside the jurisdiction of this Court but the plaintiff has sought for leave under Clause 14 of the Letters Patent Act, 1865 to join the separate cause of action to institute the present suit before this Court. The defendants further contended that the trademark of both the parties as “Khaitan” and “Khaitar” are registered under Clause 11 and thus suit for infringement under section 28 (3) of the TRADE MARKS ACT , does not lie.

5. The defendants further contended that in the show-cause notice dated 22nd July, 2020, the defendants had duly informed that the defendant no. 1 is permitted to use the trademark “Khaitar” and the defendant no. 2 is the registered proprietor but the plaintiff has not filed any application for cancellation of registration and removal of registered trade mark from the register of the Registrar of Trade Marks before the concern authorities. The defendants contended that the plaintiff and the defendant no. 2 have obtained their registered mark under Clause 11 as “Khaitar” and “Khaitar” respectively and thus this Hon'ble Court has no jurisdiction to try and determine the suit filed by the plaintiff.

6. Mr. Subhasish Sengupta, learned Advocate representing the defendants relied upon the judgments (2022) 8 SCC 401 ( Saranpal Kaur Anand v. Praduman Singh Chandhok and Ors.) , (2018) 14 SCC 1 ( Madiraju Venkata Ramana Raju v. Peddireddigari Ramachandra Reddy and Ors.) , (2016) 2 SCC 683 ( S. Syed Mohideen v. P. Sulochana Bai ), 2023 SCC Online Del 4185 ( Vasundhara Jewellers Pvt. Ltd. v. Vasundhara Fashion Jewellery LLP and Another), 2017 SCC Online Bom 7327 (Harman Overseas and Others v. Dongguan TR Bearing Company Limited) and 2016 SCC Online Cal 11849 ( Skipper Limited v. Akash Bansal & Ors.) and submitted that if the Court is satisfied that ex-facie, the suit is not maintainable or that the act of filing a suit is an abuse of process of law, the Court will be justified in exercising the discretion by refusing to grant leave under Clause 14 of the Letters Patent. He submits that if after considering the reply filed by the defendants, the Court is satisfied that grant of leave under Clause 14 of the Letters Patent will amount to

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