High Court of Delhi
MANMOHAN SINGH, J.
M/S Shree Ganesha Enterprises
Versus
Sandeep Gullah
IA Nos.17230 of 2011, 17646 of 2011 in CS (OS) No.2683 of 2011
Decided on : 13-01-2012
Civil Procedure Code, 1908 - Order 39 Rules 1 & 2 R/w Section 151 - Ad-interim injunction - Right of retired partner - Scope of re-constituted firm - Partnership deed dated 03.08.2009 between the plaintiff and defendant - The said partnership was running business of catering and food outlets and banquets hall under the trade mark/trade name/Copyright CITY BANQUET - Retirement of defendant from the said firm by virtue of re-constituted firm - At the retirement, the defendant assigned all rights, title and goodwill and assets of the business in favour of the plaintiff - Plaintiff has been able to make out a strong case for the grant of interim injunction and balance of convenience also lies in favour of the plaintiff.
Partnership Act, 1932 - Section 46 - Right of retired partner - Share of profit - It becomes clear that the assets/properties belonging to the partnership vests in the firm as the section uses the expression "property of the firm" and not in the individuals and upon dissolution - Defendant is not entitled to take the benefit of his earlier prior user right in the previous business, he carried out being a partner under the Partnership Act - Defendant was only entitled to his shares of profits from time to time and after the dissolution of the partnership or his retirement from the partnership of the value of his share.
MANMOHAN SINGH, J.
1. By this order, I propose to decide the applications filed by the parties, i.e. application bearing I.A. No.17230/2011 filed by the plaintiff under Order XXXIX, Rules 1 & 2 read with Section 151 of CPC seeking an ad-interim injunction restraining the defendant from using, advertising or dealing in the impugned trade mark and trade name CITY BANQUETS or any other trade mark which is deceptively similar or identical to the trade mark and trade name CITY BANQUET and CITY PALACE BANQUETS, and another application bearing I.A. No.17646 of 2011 filed by the defendant under Order XXXIX, Rule 4 read with Section 151 of CPC for vacation/immediate suspension of the ex-parte ad-interim order dated 01.11.2011.
CASE OF THE PLAINTIFF
2. It is stated that the plaintiff-firm which is engaged in the business of catering and food outlets and banquets hall (herein after referred to as the said business and services) was initially constituted vide partnership deed dated 03.08.2009 between Shri Shyam Sunder Suri, the Managing Partner of the plaintiff firm and Shri Sandeep Gullah, the defendant herein. Thereafter, upon the retirement of the defendant, the plaintiff firm was reconstituted vide Re-Constitution Deed dated 10.07.2011.
3. It is averred by the plaintiff that since its constitution on 03.08.2009, the plaintiff adopted the trade mark/trade name CITY BANQUET and started using the same in the course of its said business and services. The defendant, upon his retirement, assigned all his rights, title, interest in good will and other assets of the business in the favour of the re-constituted firm by way of the Re-Constitution Deed dated 10.07.2011. Further, it is stated by the plaintiff that it has filed for registration of its CITY formative trade mark, the details of which are given in para 6 of the application.
4. The plaintiff, also claims copyright in the artwork of the plaintiff’s said trade mark and trade name CITY BANQUET. It is sated that the same is an original artistic work within the meaning of Section 2(c) of the Indian Copyright Act, 1957 and the plaintiff is its owner. The said trade mark and copyright is one of the most valuable assets of the plaintiff.
5. The grievance of the plaintiff against the defendant is that after taking retirement from the plaintiff firm on 10.07.2011, defendant has started the same business and services as that of the plaintiff firm in the vicinity of the plaintiff at 36, Rama Road, Industrial Area, New Delhi and has adopted an identical/deceptively similar trademark and trade name CITY BANQUETS in relation to his business and services. It is stated by the plaintiff that the defendant has no right to use the impugned trade mark after assigning the same in favour of the reconstituted plaintiff firm.
6. It is further stated that the plaintiff first came to know about the use of the impugned trade mark and trade name in the 2nd week of October, 2011 when the defendant served a legal notice dated 03.10.2011, upon the plaintiff claiming his rights over the impugned trade mark and trade name. In the said notice, it was also stated that the defendant is the proprietor of the trade mark and trade name CITY BANQUET and that his application for registration of the said trade mark is in the final process of registration. The defendant even filed an application bearing No.1851182 in class 42 for registration of the said trade mark CITY BANQUET label on 17.08.2009. According to the plaintiff, it has filed a fresh application for registration of the trade mark CITY BANQUET label and is also taking steps for opposing the application of the defendant for registration of the impugned trade mark.
7. The plaintiff avers that the use of the impugned trade mark and trade name by the defendant is in violation of the plaintiff’s proprietary rights in the said trade mark and trade name thereby-
(a) Passing off and enabling others to pass of his business and services as that of the plaintiff;
(b)
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