DELHI HIGH COURT
Rajiv Shakdher, J.
Kashudhan Kutir Udyog - Appellant
Versus
Hindustan Unilever Ltd. - Resopndent
FAO No. 363 of 2015
Decided On : 14-10-2015
Trademark Dispute - Delay in Filing Appeal - Order 39 Rule 1 & 2 of the CPC - Order 39 Rule 4 of the CPC
Fact of the Case:
The appellant filed an appeal 193 days after the impugned order was passed by the trial court in a trademark dispute. The appellant's explanation for the delay was deemed vague by the court. The appellant disputed the ownership of the trademark 'REX' by the respondent, but the trial court had already addressed this issue and granted an injunction in favor of the respondent.
Finding of the Court:
The court found that the delay in filing the appeal was not adequately explained and dismissed the appeal. The court also upheld the trial court's decision to grant an injunction in favor of the respondent.
Issues: Delay in filing the appeal, ownership of the trademark, grant of injunction
Ratio Decidendi: The court emphasized that the discretion of the trial court in granting the injunction should not be interfered with unless it was exercised arbitrarily, capriciously, or perversely. The court also highlighted the settled principles of law regulating the grant or refusal of interlocutory injunctions.
Final Decision: The appeal and the pending application were disposed of, and the court did not interfere with the trial court's order on the merits or due to the substantial delay in approaching the court.
CM No. 23322/2015 (Exemption)
1. Allowed subject to just exceptions. FAO 363/2015 and CM No. 23321/2015 (stay) and CM No. 23320/2015 (condonation of delay of 193 days in filing the appeal)
2. There is a delay of 193 days in filing the appeal against the impugned order dated 01.12.2014, which has been passed by the trial court, in an application preferred by the respondent / plaintiff under Order 39 Rule 1 & 2 of the CPC, and on an application filed by the appellant / defendant under Order 39 Rule 4 of the CPC.
2.1 A bare perusal of the application would show that there is no explanation whatsoever for preferring the appeal after a delay of 193 days.
2.2 The only explanation proffered by the appellant / defendant is that the previous counsel did not coordinate with the proprietor of the appellant / defendant, and that, he was informed about the position of the appeal only later.
2.3 The reason is as vague as it can be. The appeal, according to me, is liable to be dismissed on this short ground alone.
3. That apart, the learned counsel for the appellant /defendant says that while he does not dispute the fact that the trademark (word mark per se) of the parties is similar, his only submission before me, is that, the respondent / plaintiff is not an owner of the trademark.
3.1 To be noted, the trademark of the respondent / plaintiff is ‘REX’, whereas that of the appellant / defendant is ‘RAX’. The trial court has noted that both manufacture the same product i.e. baking powder.
3.2 In so far as the assertion made by the counsel for the appellant / defendant is concerned that the respondent / plaintiff is not the owner of the trademark, the trial court has dealt with that submission in paragraph 8 of the impugned judgment. The relevant portion of the judgment is extracted hereinbelow for the sake of convenience:-
“..8. The next argument of the defendant that plaintiff has failed to give any details of transferor i.e. relationship between Corn Product Company and Best Food Inc. The plaintiff has alleged that trademark REX was transferred to one Conopco Inc. USA with a request made on behalf of Conopco Inc., on form 24 dated 19.08.2002 in respect of around 52 registered trademarks including REX in various classes or in the name of Best Food Inc. The agreement dated 26.03.2013 very well provides that Conopco Inc. has granted a licence of Trademarks that it owns to Unilever PLC with a right to sub-licence such rights to the plaintiff company. It is settled law that a mini trial is not to be conducted at the stage of granting of injunction. The argument raised by defendant can be if at all considered at later stage as it may require evidence to be led by parties to determine this contention. The court at the stage is required to see whether a prima facie case is made out to grant interim relief to the plaintiff at this stage.”
3.3 According to me, no interference is called for as the discretion employed by the trial court in granting the injunction is neither arbitrary nor perverse. The parameters for interference by the appellant court are set out in the judgment of the Supreme Court in the case of Wander Ltd. and Anr. v. Antox India P. Ltd., (1990) Supp. SCC 727. The observations contained in paragraph 14 at page 731-32 of the said judgment, being relevant, are extracted hereafter:
..14. ..The appeals before the Division Bench were against the exercise of discretion by the Single Judge. In such appeals, the Appellate Court will not interfere with the exercise of discretion of the court of first instance and substitute its own discretion except where the discretion has been shown to have been exercised arbitrarily, or capriciously or perversely or where the court had ignored the settled principles of law regulating grant or refusal of interlocutory injunctions. An appeal against exercise of discretion is said to be an appeal on principle. Appellate Court will not reassess the material and seek to reach a conclusion different from the on
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