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2015 Supreme(Del) 3602

DELHI HIGH COURT
Rajiv Shakdher, J.
Philips India Pvt. Ltd. - Appellant
Versus
Shree Sant Kripa Appliances Pvt. Ltd. - Resopndent
CS (OS) No. 1913 of 2014
Decided On : 19-01-2015

For the Petitioner:Mr. Anish Kapur and Mr. Mohit Mathur, Advocates.
For the Respondents:Mr. Shailen Bhatia and Ms. Priti, Advocates.

The impugned representations must be untrue, made maliciously, and result in special damage for an action of malicious falsehood to succeed. Bald pleadings alluding to degradation of reputation and loss would not suffice for an injunction.

Headnote:

Trade Libel - False and Misleading Representations - Section 151, CPC - The court discussed the tort of disparagement or trade libel and the principles elucidated by various judgments of this Court and that of the Supreme Court, and other texts, and judgments of English Courts with regard to the tort of disparagement or trade libel or malicious falsehood. The court found that the impugned representations were not made with the intent to injure the plaintiff’s business in CFL bulbs and dismissed the application for injunction.

Fact of the Case:

The plaintiff filed a suit seeking a permanent injunction against the defendant for false, misleading, and disparaging representations in the form of advertisements/internet representations comparing LED bulbs and CFL bulbs. The plaintiff claimed that the impugned advertisements affected its goodwill and market reputation.

Finding of the Court:

The court found that the impugned representations were not made with the intent to injure the plaintiff’s business in CFL bulbs and dismissed the application for injunction.

Issues: The issues revolved around the alleged false and misleading representations made by the defendant in comparing LED bulbs and CFL bulbs, and whether the plaintiff had demonstrated falsehood in the defendant’s statements.

Ratio Decidendi: The court discussed the principles of disparagement or trade libel and found that the impugned representations were not made with the intent to injure the plaintiff’s business in CFL bulbs. The court also noted that the action stopped short of a claim for damages and dismissed the application for injunction.

Final Decision: The court dismissed the application for injunction, stating that no case was made out for the grant of injunction.

JUDGMENT :

Rajiv Shakdher, J.:--

IA No. 11819/2014 (u/Order 39 Rules 1 & 2 r/w Section 151, CPC for stay)

1. The present suit has been filed to seek a decree of permanent injunction qua the defendant against what the plaintiff construes as false, misleading and disparaging representations. The representations, according to the plaintiff, are essentially in the form of advertisements/internet representations. The captioned application, which is what I am concerned with presently, is filed in aid of the reliefs claimed in the suit.

1.1 The suit, as framed, is in the nature of trade libel, which is also interchangeably, referred to as an action for injurious falsehood or, more appropriately, an action for malicious falsehood.

1.2 The peculiarity of the present action is that the impugned advertisements are generic in nature which, while comparing two rival products do not specifically name the plaintiff. The two rival products being Light Emitting Diode (hereafter referred to as LED bulbs) and Compact Florescent Lamps (hereafter referred to as the CFL bulbs).

1.3 This aspect becomes even more involved by virtue of the fact that the advertisements issued by the defendant, which extols the virtues of LED bulbs over those of CFL bulbs; is a product, which is also manufactured by the plaintiff. There is, however, no averment in the plaint with regard to the fact that the plaintiff is also in the business of manufacturing LED bulbs. On the other hand, the plaintiff, which apart from LED bulbs also manufactures CFL bulbs, has approached the Court for grant of injunction against the defendant on the ground that the representations made qua CFL bulbs in the impugned advertisement, are false and misleading.

1.4 It is in this context that the plaintiff claims that the impugned advertisements, though generic in nature, affects its goodwill and market reputation. In support of this assertion, the plaintiff has made the following averments that:

(i) It is the largest manufacturer of the CFL bulbs having, approximately, 30% of the market share.

(ii) It is the only player in the business with direct reach in 1000 semi-urban markets and has, therefore, invested large sums of money to support conventional lighting distribution in these markets.

(iii) Nearly 13% of the plaintiff’s annual turnover comprises CFL bulbs.

(iv) The plaintiff has the biggest CFL manufacturing unit; which is located at Mohali and is capable of producing nearly six (6) million CFL bulbs per month. Towards this end, it has engaged two thousand (2000) permanent and temporary employees, which is sup­ported by a full-fledged quality and development department.

2. The plaintiff is, as indicated above, essentially, aggrieved by the following impugned advertisement dated 19.5.2014, published in Dainik Bhaskar:

‘Insert photo sketch’

2.1 This apart the plaintiff is also aggrieved, as stated above, by what it claims are a false and misleading averments made by the defendants on its website: http:/syskaledlights.com.

2.2 According to the plaintiff, the aforementioned advertisement issued by the defendant makes the following false and/or misleading representations, while extolling the virtues of the LED bulbs manufactured and sold by it under the brand name “SYSKA”:

(i) 5 watt SYSKA LED is equal to any 15 watt CFL bulb.

(ii) The price of 5 watt SYSKA LED is equal to any 15 watt CFL bulb.

(iii) SYSKA 5 watt LED lasts up to 50,000 hours.

(iv) “Its game over for CLF.”

3. In order to demonstrate the falsity of the defendant’s claim, the following assertions are made by the plaintiff:

(i) The defendant’s 5 watt LED bulb is almost five (5) times the cost of a 15 watt CFL bulb sold by various other manufacturers in India and is seven (7) times the cost of a 14 watt CFL bulb manufactured by the plaintiff. It is stated that the plaintiff manufactures only fourteen (14) watt CFL bulbs and not fifteen (15) watt bulbs. The price of defendant’s five (5) watt LED bulb is Rs. 700/- as opposed to the price range of a 14/



























































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