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2010 Supreme(Del) 319

HIGH COURT OF DELHI NEW DELHI
JUSTICE MANMOHAN SINGH
Chartered Financial Analysis Institute ...Plaintiff
Versus
The Institute of Chartered Financial Analysts Of India and Ors. ...Defendants
IA No. 14353/2008, IA No. 14354/2008 and IA No. 1865/2009 in CS (OS) No. 210/2004
Decided On : 5th April, 2010

Advocates Appeared:
Mr. Sanjay Jain, Ms. Ruchi Jain Mr. Rajender Kumar, Mr. Ashish Marbinang, Ms. Latha R. Nair Mr. Sumit Rajput, Advs.
Mr. Mukul Rohatgi, Sr. Adv., Mr. Rajiv Nayyar, Sr. Adv.
Ms. Pratibha M. Singh, Ms. Saya Chowdhary Ms. Archana Sachdeva, Advs
Mr. C.S. Vaidyanathan, Sr. Adv. with Kirtiman Singh, Adv.
Mr. Gaurav Miglani, Adv.

Headnote:(i) Validity of Statute - Challenge against must be pleaded and clearly laid out in grounds of pleadings - If not, same must be rejected in limine. (Para 371

       (ii) Precedent - Court may not direct the legislature to amend the laws. [Para 39]

       (iii) Trade Marks Act, 1999 - Section 153 - Misuse of trade marks by statutorily recognised university, earlier misused privately - No circumstances can give rise to anomalous situations where Court will become powerless and remain silent spectator - Said situation will not give any immunity to said university from Court - Even Government is no exclusion when it comes to misuse of trade marks - Universities are private entities with no participation of State in their affairs - These are created by Acts of State Legislature and same is not unique to defendant universities alone. [Paras 39, 40, 41, 43, 45]

        (iv) Civil Procedure Code, 1908 - Order 7 Rule 11, Order 39 Rules 1, 2 r/w Section 151- Rejection of Plaint- Injunction - Restraining defendants from using plaintiffs trade marks CFA, CHARTERED FINANCIAL ANALYST, etc. passing off, etc. - Success or merit of matter will not determine whether plaint discloses cause of action or not - Argument of learned Counsel for defendants that because of existence of State Acts, cause of action is not disclosed in plaint qua States and hence there is no cause of action against defendant Nos. 3 to 6, not accepted - Contention of defendants that cause of action of plaintiff contended in plaint is weak, is not a ground for rejection of plaint under Order 7 Rule 11, CPC. [Paras 46, 47]

       (v) Civil Procedure Code, 1908 - Order 7 Rule 11 - Rejection of Plaint - Plaint is liable to be rejected if any of the grounds set out under Order 7 Rule 11, CPC are satisfied. [Para 461

       (vi) Civil Procedure Code, 1908-0rder 7 Rule II-Plaint not disclosing cause of action and suit based upon weak cause of action is distinct. [Para 47]

       (vii) Civil Procedure Code, 1908 -Order 7 Rule 11, Order 39 Rules 1, 2 r/w Section 151 - Rejection of Plaint - Suit barred by law - Rejection - No express or implied law in Acts for maintaining civil suit - In absence of same, it would not be appropriate to assume that suit is barred merely by existence of Acts - Application of special law over general law is another reason for concluding that suit is not barred. [Paras 48,49]

JUDGMENT

1. This order shall decide three applications being IA No. 14353/2008 and IA No. 14354/2008 filed under Order VII Rule 11 of the Code of Civil Procedure, 1908 (hereinafter referred to as „the CPC) by defendant nos. 4 to 6 and defendant no. 3 respectively for rejection of the plaint and IA No. 1865/2009 filed by defendant nos. 1 and 2 under Order 39 Rule 4 read with Section 151 of the CPC for vacation of the interim injunction granted by this Court vide order dated 04.08.2006.

2. The present suit was filed seeking mandatory injunction restraining the defendants from using the plaintiff?s trademarks CFA, CHARTERED FINANCIAL ANALYST etc., passing off and rendition of accounts.

3. Vide order dated 04.08.2006, this Court granted an injunction whereby the original defendant nos. 1 and 2 were restrained from using the trade marks/service marks “CFA, Chartered Financial Analysts of India, ICFA and ICFAI”. The said injunction was to become operative after the end of the then current academic session. The relevant portion of the interim order dated 04.08.2006 reads as under :

“In view of above, I allow the application under Order 39 Rules 1 & 2 CPC and restrain the Defendants, during the pendency of the suit, from using any of the trademarks or service marks CFA, Chartered Financial Analyst, The Institute of Chartered Financial Analysts of India, ICFA and ICFAI or any other name or mark which may be identical or deceptively similar to these marks and from passing off their programmes or business as that of the Plaintiffs. However, this order of injunction will not come into effect till the end of current academic session of the CFA programme run by the Defendants. Nor will anything said herein will mean final expression of opinion of this Court.”

4. Subsequent to the passing of the order dated 04.08.2006, an application (IA No.9950/2007) under Order 1 Rule 10 with Order 6 Rule 17 CPC was moved by the plaintiff in order to implead certain Universities (Tripura, Meghalaya, Mizoram and Dehradun) sponsored by the defendant No.1, as necessary parties to the present suit.

5. The reason given by the plaintiff for the purpose of amendments/impleadment of universities sponsored by the original defendants owes its origin to an application filed by the original defendants filed as IA No. 1589/2005 in which the original defendants in the midst of arguments on the plaintiff?s application under Order XXXIX Rules 1 and 2 of the CPC being IA No. 11547/2004 claimed that their group had grown with the addition of various institutes including their sponsored universities which have been newly impleaded.

6. The following is the justification given by the plaintiff in para 11 of the amended Plaint for impleadment of defendant nos. 3 to 6: “Defendant Nos. 3-6 are the universities established, sponsored and controlled by Defendant No.1 and permitted under a purported license of Defendant No.1 to use the impugned trade mark/trade name CFA, ICFAI, INSTITUTE OF CHARTERED FINANCIAL ANALYSTS. In this connection, the Plaintiff wishes to submit that :

a) Defendant No.1 has made an application for the mark “ICFAI UNIVERSITY” as a trade mark before the Registrar of Trade Marks, claiming itself to be the owner of the mark in question.

b) The brochure published by Defendant No.1 for its various programmes contains a disclosure statement to the effect that these universities are sponsored, controlled and established by Defendant No.1 and that their use of the trade mark/trade name in their respective names is under license of the said Defendant.

c) Various statues enacted at the instance of Defendant No.1 for establishment of the proposed respondents as private universities acknowledge the role of Defendant No.1 in creation, administration and management of these proposed respondents.

d) The Defendant No.1 has been operating a website www.icfai.org which features a link to the “ICFAI UNIVERSITY”, describing the various universities sponsor































































































































































































































































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