SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2015 Supreme(Del) 3378

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN SINGH, J.
Novartis Ag & Another – Plaintiffs
Versus
Cipla Limited – Defendant
C.S. (OS) No. 3812 of 2014
Decided On : 27.11.2015

Advocate Appeared:
For Plaintiff:Mr. Hemant Singh, Ms. Mamta Jha and Dr. Shilpa Arora, Advocates.
For Defendant:Mrs. Prathiba M. Singh, Senior Advocate, Ms. Bitika Sharma, Ms. Namrita Kochhar and Mr. Harshit Saxena, Advocates.

Headnote:

Patent Infringement - Commercial Disputes - Patents Act, 1970, Designs Act, 2000, Trademarks Act, 1999, Copyright Act, 1957, Geographical Indications of Goods (Registration and Protection) Act, 1999 - The court discussed the jurisdiction of the Commercial Division of the High Court in hearing and disposing of intellectual property matters, irrespective of their pecuniary value, as defined in the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015. The court also interpreted the provisions of the Patents Act, 1970, Trademarks Act, 1999, Copyright Act, 1957, Designs Act, 2000, and Geographical Indications of Goods (Registration and Protection) Act, 1999 in relation to the jurisdiction of the Commercial Division of the High Court.

Fact of the Case:

The plaintiffs filed a suit for permanent injunction restraining infringement of Patent No. 222346 and for rendition of accounts/damages, delivery-up etc. The defendant challenged the validity of the suit patent and filed a counter-claim. The issue was whether the suit should be transferred to the jurisdictional subordinate courts or heard by the Commercial Division of the High Court.

Finding of the Court:

The court found that the suit for infringement of patent, when challenged by the defendant, should be heard and disposed of by the Commercial Division of the High Court, irrespective of its pecuniary value, as per the provisions of the Patents Act, 1970 and the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015.

Issues: The main issue was the jurisdiction of the Commercial Division of the High Court in hearing and disposing of intellectual property matters, particularly pertaining to the Patents Act, 1970 and Designs Act, 2000, irrespective of their pecuniary value.

Ratio Decidendi: The court interpreted the relevant provisions of the Patents Act, 1970, Trademarks Act, 1999, Copyright Act, 1957, Designs Act, 2000, and Geographical Indications of Goods (Registration and Protection) Act, 1999 in relation to the jurisdiction of the Commercial Division of the High Court, and held that such matters should be heard and disposed of by the Commercial Division of the High Court, irrespective of their pecuniary value.

Final Decision: The court decided that the suit for infringement of patent, when challenged by the defendant, should be heard and disposed of by the Commercial Division of the High Court, and therefore, the matter should not be transferred to the District Court.

JUDGMENT

MANMOHAN SINGH, J.

1. The plaintiffs have filed the present suit for permanent injunction restraining infringement of Patent No. 222346 as well as for rendition of accounts/damages, delivery-up etc. The suit was valued for the purposes of Court fee and jurisdiction at Rs. 20,07,000/-.

2. The written statement was filed by the defendant on 22nd January, 2015 who has also filed the counter-claim on 7th April, 2015. Both in the written statement as well as in the counter-claim, the defendant has challenged the validity of the suit patent.

3. In the meanwhile, as noticed in the Official Gazette on 23rd October, 2015, the President was pleased to promulgate the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015. By virtue of Section 1(2), the Ordinance extends to the whole of India, except for the State of Jammu and Kashmir. Section 1(3) provides that the Ordinance came into force at once.

4. As per the Ordinance, commercial disputes as mentioned in Section 2(1)(c) of the Ordinance shall be adjudicated as per the provisions of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015.

5. Section 2(1)(c) of the Ordinance defines Commercial dispute and sub-section (xvii) provides that a commercial dispute means a dispute arising out of intellectual property rights relating to registered and unregistered trademarks, copyright, patents, design, domain names, geographical indications and semiconductor integrated circuits.

6. The term Specified Value as occurring in the Ordinance is defined as per Section 2(1)(i) of the Ordinance in relation to a commercial dispute as the value of the subject matter in respect of a suit as determined in accordance with Section 12 which shall not be less than one crore rupees or such higher value, as may be notified by the Central Government.

7. The proviso to Section 3(1) of the Ordinance prohibits constitution of any Commercial Court at the District Level in the territory over which the High Court has ordinary original civil jurisdiction.

8. In terms of Section 4(1) of the Ordinance, in all High Courts having Original Civil Jurisdiction like this Court, Hon’ble the Chief Justice may constitute Commercial Division comprising Single Judges for the purposes of exercising jurisdiction and powers conferred upon such Commercial Division by the Ordinance.

9. In terms of Section 5(1) of the Ordinance, such High Courts are required to constitute Commercial Appellate Divisions which would be Division Benches for the purposes of exercising jurisdiction and powers conferred by virtue of the Ordinance.

10. By orders dated 15th November, 2015 and 17th November, 2015, Hon’ble the Chief Justice has constituted the Commercial Divisions having six Benches of Single Judges and the Commercial Appellate Division comprising four Division Benches.

11. In view of Section 4 of the Delhi High Court (Amendment) Act, 2015 and the order passed on 24th November, 2015, all suits or other proceedings the value of which exceeds rupees one crore but does not exceed rupees two crores, other than those relating to commercial disputes the specified value of which is not less than rupees one crore (as defined in the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015), pending in this Court on the Original Side, excepting those cases in which final judgments have been reserved, be transferred to the jurisdictional subordinate courts.

12. Section 7 of the Ordinance provides that all suits and applications relating to commercial disputes of a Specified value filed in a High Court having ordinary original civil jurisdiction shall be heard and disposed of by the Commercial Division of that High Court.

Provided that all suits and applications relating to commercial disputes, stipulated by an Act to lie in a court not inferior to a District Court and filed on the original side of the H








































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top