1985 Supreme(Del) 268
High Court Of Delhi
JANAK MATHURADAS - Appellant
Versus
UNION OF INDIA - Respondent
Civil Writ 1509 of 1985
Decided On : 07/15/1985
A.B.SAHARIA, ARUN MOHAN, D.L.Fray, K.Bucher, P.N.SEVAK, R.K.Mehra, Ram Babu Gupta, S.Kamlesh
The guidelines promulgated by the Government of India for the grant of licenses to new manufacturers did not disable the Government from granting a license or create a right in a third party to insist on the denial of a license where the trade name was not of such a type.
Headnote:
INDUSTRIAL POLICY - FOREIGN BRAND NAMES - USE OF - GUIDELINES - INTERPRETATION - WRIT PETITION - MAINTAINABILITY - PREMATURITY.
Fact of the Case:
Petitioner sought to restrain the Union of India from permitting the third respondent to manufacture razor blades in collaboration with the fourth respondent and marketing the same in India under a foreign brand name. The Government of India had granted a license to the third respondent and allowed the use of "foreign brand name 7 O clock" in the manufacture of the blades.
Finding of the Court:
The court held that the guidelines promulgated by the Government of India for the grant of licenses to new manufacturers did not disable the Government from granting a license or create a right in a third party to insist on the denial of a license where the trade name was not of such a type. The court also held that the petition was premature as the respondents had not started their manufacturing activities and the brand name under which they proposed to market the goods had not been decided upon.
Issues: Whether the Government of India's guidelines for the grant of licenses to new manufacturers prohibited the use of mixed brand names.
Ratio Decidendi: The court held that the guidelines promulgated by the Government of India for the grant of licenses to new manufacturers did not disable the Government from granting a license or create a right in a third party to insist on the denial of a license where the trade name was not of such a type. The court also held that the petition was premature as the respondents had not started their manufacturing activities and the brand name under which they proposed to market the goods had not been decided upon.
Final Decision: The court dismissed the writ petition as not maintainable and premature.
( 1 ) THE petitioner has sought by this writ petition orders restraining the Union of India from permitting the third respondent to manufacture razor blades in collaboration with the fourth respondent and marketing the same in India under a foreign brand name. According to the petitioner the Government of India has granted a licence to the third respondent and also taken a decision allowing the use of "foreign brand name 7 O clock either per se by itself or in combination and/or conjunction with other names as a prefix or suffix" in the manufacture of the blades by the third respondent. The Union of India has filed a counter affidavit in which it has been stated that no individual manufacturer has approached the Government for grant of "permission for the use of a foreign brand name nor has 7 O Clock brand name been granted. It is further stated that the petitioner s assumed threat in this regard is imaginary and misconceived. Respondent No. 3 in its reply affidavit has referred to the foreign collaboration agreement entered into by it with the fourth respondent and the terms of the Government s approval to the said agreement. Reference has been made to a memorandum of the Government dt. 18th Dec. , 1982 by which the Government of India took on record the collaboration agreement as amended by the third respondent in pursuance of the directions issued by the Government earlier on 8th November, 1982. By letter dt. 8th Nov. , 1982 the Government had directed the amendment of the collaboration agreement inter alia in the following respect. Clause 10 (2) of the agreement was to be amended to read as follows :
"jv Company will use a new Indian Brand name (to be decided upon between the parties hereto) consisting of a distinctive Indian or other name in conjuction with the 7 o Clock trade mark in order to characterise it clearly as an Indian brand name. "
THIS amendment has been duly carried out between the third and fourth respondents and the amended collaboration agreement with clause 10 (2) as substituted in accordance with the Governments direction has been taken on record by the Government. Respondent No. 3, in its counter affidavit, has submitted that foreign brand names in conjuction with the Indian names have been permitted on large scale by the Government and it has also filed a long list of such mixed brand names which are used by Indian Companies in respect of products marketed in India. This was in order to show that there was no policy of the Government of India to completely exclude brand names which were a mixture of Indian and foreign names. In respect of this detailed list the petitioner has not filed any reply or rejoinder. But this was perhaps because on 5th July, 1985 counsel had stated that he would file a rejoinder affidavit to the affidavit of respondent No. 3 after C. M. 2221/85 (referred to later) is decided.
( 2 ). On behalf of the petitioner it is contended that the counter affidavit filed on behalf of the Union of India does not set down the correct position and that the Government has approved a foreign brand name being used by the third respondent. Counsel submits that this has happened subsequent to 18th of Dec. , 1982. He, therefore, filed C. M. No. 2221/85 calling for the records of the Union of India and permitting inspection of the same by the petitioner. In this context it may be mentioned that this application was considered necessary because in the counter affidavit filed by the Union of India it had claimed privilege of the record under S. 123 of the Indian Evidence Act.
( 3 ). In the writ petition the short point urged on behalf of the petitioner is that under the guidelines promulgated by the Government of India for grant of licences to new manufacturers, one of the most important conditions insisted upon by the Government is : "the foreign use of brand names will not be permitted for internal sales". It is on the basis of this clause that the petitioner contends that