IN THE HIGH COURT OF DELHI
BADAR DURREZ AHMED And SANJEEV SACHDEVA, JJ.
ULTRA HOME CONSTRUCTION PVT. LTD - Appellant
Versus
PURUSHOTTAM KUMAR CHAUBEY & ORS - Respondents
FAO (OS) 494/2015 & CM 17816/2015
Decided on : 20.01.2016
TERRITORIAL JURISDICTION - TRADEMARK INFRINGEMENT - Code of Civil Procedure, 1908, Trade Marks Act, 1999, Copyright Act, 1957 - The court discussed the provisions of section 20 of the Code of Civil Procedure, 1908, section 134 of the Trade Marks Act, 1999, and section 62 of the Copyright Act, 1957. The court interpreted the meaning of 'carries on business' and the deeming provision for corporations with principal and subordinate offices. The court concluded that the plaintiff carries on business at the place where the cause of action arose and cannot sue the defendants in Delhi.
Fact of the Case:
The appellant/plaintiff filed a suit seeking an injunction against the defendants for trademark infringement. The suit was dismissed by the learned single judge on the ground that the court did not have territorial jurisdiction to entertain the suit. The appellant/plaintiff invoked the jurisdiction of the court on the ground that its principal office was located in Delhi and, therefore, it carried on business in Delhi.
Finding of the Court:
The court found that the appellant/plaintiff carries on business at the place where the cause of action arose, which was Deogarh, Jharkhand, and not in Delhi. The court held that it did not have territorial jurisdiction to entertain the suit and directed the plaint to be returned to the appellant/plaintiff for presentation before the proper court.
Issues: The main issue was whether the court had territorial jurisdiction to entertain the suit filed by the appellant/plaintiff.
Ratio Decidendi: The court applied the provisions of section 20 of the Code of Civil Procedure, 1908, section 134 of the Trade Marks Act, 1999, and section 62 of the Copyright Act, 1957 to determine the territorial jurisdiction. The court interpreted the meaning of 'carries on business' and the deeming provision for corporations with principal and subordinate offices.
Final Decision: The dismissal of the suit was set aside, and the plaint was directed to be returned to the appellant/plaintiff for presentation before the proper court. The court held that it did not have territorial jurisdiction to entertain the suit.
BADAR DURREZ AHMED, J.
1. This appeal has been filed against the judgement dated 20.07.2015 delivered by a learned single judge of this court in CS (OS) 2065/2015. By virtue of the impugned judgement the learned single judge has dismissed a suit filed by the appellant/plaintiff on the ground that this court does not have the territorial jurisdiction to entertain the same. The said dismissal of the suit was in limine, without requiring the presence of the defendants / respondents.
2. The suit was filed by the appellant/plaintiff seeking an injunction against the defendants, alleging infringement of its trademark "AMRAPALI". The appellant / plaintiff, as alleged in the plaint, carries on the business of building, developing, colonising and promoting residential, commercial and industrial buildings, cinema houses, amusement parks, hotels and deals in all kinds of immovable properties. It is further alleged that the appellant / plaintiff (Ultra Home Construction Private Limited) is the flagship company of the AMRAPALI GROUP and has a number of other affiliate/associate companies in which it has a controlling stake either by itself or through the shareholding members or has common directors and shareholders. It is further alleged that due to the popularity of the appellant company and its trademark AMRAPALI, the same has become the mark of the group as such and that is how the entire group is known as the AMRAPALI GROUP. According to the appellant / plaintiff, the AMRAPALI GROUP is the leader in real estate development industry. It is further stated in the plaint that the appellant / plaintiff has its principal place of business (registered office) at 307, Third floor, Nipun Tower, Community Centre, Karkardooma, Delhi-92.
3. It is also stated in the plaint that the plaintiff/appellant is inter alia operating a hotel at Deogarh, Jharkhand in association with Clark-Inn hotel group. The said hotel is being run under the name – Amrapali Clark-Inn. It is alleged that the defendants/respondents have launched a residential project at Deogarh, Jharkhand under a deceptively similar name – AMBAPALI GREEN. Paragraph 39 of the plaint is relevant and is set out herein below:-
“39. That the defendants are purportedly launched residential project by the deceptively similar name i.e. AMBAPALI GREEN which shall definitely create confusion in the mind of general public who will start considering this project as an extension of plaintiff’s earlier project AMRAPALI GREEN. The plaintiff’s has long back presence in the town of Deogarh (Jharkhand) where the defendants have launched the impugned project AMBAPALI GREEN. The plaintiff has its hotel in Deogarh which is operational and running in profit and plaintiff’s trademark has been known to the local residents and tourists who throng to that place for worship. It is pertinent to mention here that plaintiff’s project Amrapali Green is a successful group housing residential complex having sprawling ambience and consisting of approximately 354 flats/apartments of varying sizes in Indira Puram, Ghaziabad. The project has already been completed in 2008 and possession has been handed over to the respective customers. The launch of impugned project is a calculated move of defendants to injure the plaintiff in his trade or business by unfair competition. By launching project of deceptively similar name, the defendants have made false representation to prospective customers about his business to pass off its goods as the goods of plaintiff. The impugned project is also launched with the illegal motive to reduce force or value of plaintiff’s trademark and to gradually tamper the commercial value of its marks and reputation slice by slice.”
Paragraph 52 of the plaint, through which the territorial jurisdiction of this court is invoked, is relevant and is set out below:-
“52. That this Hon’ble Court has t
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