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2017 Supreme(Del) 1681

IN THE HIGH COURT OF DELHI AT NEW DELHI
INDERMEET KAUR, J.
PARAMOUNT SURGIMED LIMITED - Plaintiff
Versus
PARAMOUNT BED INDIA PRIVATE LIMITED & ORS - Defendants
CS(COMM) 222 of 2017
Decided on : 25-05-2017

Advocates:
Advocate Appeared:
For the Appellant : Mr. Amit Sibal, Sr. Adv. with Ms. Bitika Sharma, Mr. Kapil Midha, Mr. Tahir Ashraf Siddiqui, Mr. Rahul Kumar, Mr. Rohan and Ms. Isha Tyagi, Advs.
For the Respondent: Mr. Sudhir Chandra, Sr. Adv. with Mr.Pravin Anand, Ms.Tusha Malhotra and Mr. Kanak Bose, Advs.

Headnote:

Trademark Infringement - Paramount Surgimed Limited - Indian Companies Act, Order XXXIX Rules 1 & 2 of the Code - CS(COMM) 222/2017 - The judgment discusses the plaintiff's prior adoption and ownership of the trademark 'PARAMOUNT', the defendant's adoption and use of the same trademark, the issuance of an ex-parte order in favor of the plaintiff, the defendant's alleged dishonest conduct, and the court's analysis of the evidence and arguments presented by both parties.

Fact of the Case:

The plaintiff, Paramount Surgimed Limited, claimed to be the prior adopted user and lawful owner of the trademark/name 'PARAMOUNT'. The defendants, including a foreign company, were accused of adopting and using the same trademark for their hospital beds, causing irreparable loss and injury to the plaintiff. An ex-parte order was passed in favor of the plaintiff, restraining the defendants from dealing in goods under the impugned trademark.

Finding of the Court:

The court found that the plaintiff's claim of learning about the defendant's activities in February 2017 was a mis-statement, as evidence showed the plaintiff's awareness of the defendant's presence in the market since 2007. The court concluded that the plaintiff approached the court with a dishonest mind and suppressed material facts, leading to a denial of equitable relief.

Issues: The issues included the plaintiff's prior adoption and ownership of the trademark, the defendant's alleged dishonest conduct, the validity of the plaintiff's registration, and the balance of convenience in granting an injunction.

Ratio Decidendi: The court held that the plaintiff's conduct lacked fair play and that deliberate suppression of material facts and dishonesty by the plaintiff were fatal to the grant of equitable relief. The court also considered the defendant's trans-border reputation and the plaintiff's minimal sales of hospital beds, leading to the denial of the ex-parte order and the allowance of the defendant's application under Order XXXIX Rule 4 of the Code.

Final Decision: The ex-parte order in favor of the plaintiff was set aside, and the defendant's application under Order XXXIX Rule 4 of the Code was allowed. The court found that the plaintiff failed to establish a prima facie case, and the balance of convenience favored the defendant, leading to the disposal of the applications in favor of the defendant.

JUDGMENT :

INDERMEET KAUR, J.

I.A. No.3682/2017 (under Order XXXIX Rules 1 & 2 of the Code) & I.A. No.4425/2017 (under Order XXXIX Rule 4 of the Code) in CS(COMM) 222/2017

1. The plaintiff Paramount Surgimed Limited is a company duly incorporated under the Indian Companies Act. The products of the plaintiff are manufactured and sold under the mark and name “PARAMOUNT” which is also the prominent part of the corporate name of the plaintiff company. These includes surgical blades, disposable scalpels, stitch cutters, skin graft blades etc. In para 6 of the plaint, it has been stated that the plaintiff company is also manufacturing, exporting and supplying intensive care hospital beds in India through its sister concern M/s United Poly Engineering Pvt. Ltd. which was established in the year 1980. The products of the plaintiff are being exported to over 50 countries. The word “PARAMOUNT” was first adopted by the plaintiff in the year 1993 as part of its corporate name. It is the registered proprietor of mark label “PARAMOUNT” under clause 10 (surgical, medical, dental etc.) as also in class 20 (furniture, mirrors, picture frames etc.) and its first registration dates back to 14.01.2000. The details of 15 registrations of the plaintiff are contained in para 13 of the plaint. The plaintiff company has spent a considerable amount of money in promoting and advertising its trademark “PARAMOUNT” and the details of the expenditure is contained in para 18. It’s is sale turnover is given in para 19. All these submissions are supported by the documents. Contention of the plaintiff is that he is the prior adopted user and lawful owner of the trademark/name “PARAMOUNT”.

2. Defendant No.1 is a company incorporated in the year 2012 under the Indian Companies Act. Defendant No.2 is a foreign company incorporated under the laws of Japan. It is engaged in manufacturing, selling, exporting hospital beds under the trademark “PARAMOUNT”. Defendants No. 3 to 5 are the directors of defendant No.1. The defendants have recently adopted and started using trademark/label “PARAMOUNT” of the plaintiff as their trade name in relation to their impugned goods and are carrying out the impugned activities in India. In the month of February, 2017 when the distributors of the plaintiff addressed a letter to them information was disclosed that the plaintiff had “recently launched a range of hospital beds; this was then was inquired into. Adoption of the trade name “PARAMOUNT” which is the registered mark of the plaintiff by the defendant is dishonest; the defendants are riding upon the goodwill and reputation of the plaintiff which he has built over the years.

3. In the year 2012, vide a letter dated 20.03.2012, defendant No.2 was directed to file a response to the notice of opposition dated 01.04.2009 filed by the plaintiff; no response was received from the defendants. The use of the mark “PARAMOUNT” by the defendants which is identical and deceptively and confusingly similar to the plaintiff”s mark has caused an irreparable loss and injury to him. A prima-face case is made out in favour of the plaintiff as the reputation of the plaintiff has been tarnished by this dishonest adoption of the user of his trade name by the defendants. Balance of convenience is also in his favour. He has accordingly filed the present suit and had prayed for an ad-interim ex-parte order.

4. On 23.03.2017, an ex-parte order had been passed in favour of the plaintiff. The said order reads herein as under:-

“The defendants, its directors, principal officers, assignees, affiliates, associates, partners, family members and anyone acting for and on their behalf, etc. are restrained till the next date of hearing from providing and offering goods, distributing, advertising directly or indirectly dealing in identical or allied/cognate goods under the impugned trade mark/trade name/corporate name or domain name comprising of the mark PARAMOUNT or any other mark which is deceptively similar to that of






























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