IN THE HIGH COURT OF DELHI AT NEW DELHI
V. Kameswar Rao, J.
Anil Rathi - Appellant
Versus
Shri Sharma Steeltech (india) Pvt Ltd. & Ors. - Respondent
Civil Suit (Comm) No. 654 of 2019, 655 of 2019; Interlocutory Application No. 16991 of 2019, 16992 of 2019, 16993 of 2019, 16994 of 2019, 16995 of 2019, 1332 of 2020, 4013 of 2020, 4014 of 2020, 4217 of 2020, 4255 of 2020; Criminal Miscellaneous Appeal No. 7204 of 2020
Decided On : 15-09-2020
| Table of Content |
|---|
| 1. background of rathi family and trademark acquisition. (Para 2 , 3 , 4 , 5 , 6 , 7 , 10) |
| 2. terms of the trust deed and mou, contravention consequences. (Para 11 , 13 , 14 , 15 , 16) |
| 3. claims of trademark infringement by defendants. (Para 19 , 20) |
| 4. plaintiff's prima facie case and balance of convenience. (Para 21 , 22) |
| 5. authority and locus standi issues regarding the suit. (Para 33 , 34 , 61) |
| 6. legal basis for plaintiff's entitlement to file suit. (Para 50 , 51 , 52 , 53) |
| 7. court's final order and interim injunctions. (Para 94 , 95 , 96) |
JUDGMENT
V. Kameswar Rao, J. - At the outset, I may state that since the facts and the submissions made by the counsels in I.A. 16991/2019 in CS(COMM) 654/2019 as well as in I.A. 16994/2019 in CS (COMM) 655/2019 are similar, these applications are being disposed of by this common order. However, the facts in the aforesaid applications / suits shall be narrated separately.
I.A. 16991/2019 in CS (COMM) 654/2019 (filed by the plaintiff under Order XXXIX Rule 1 & 2 read with Section 151 of the CPC)
1. The present application has been filed with the following prayers:
i. Pass an ex-parte ad interim injunction restraining the Defendant Nos. 1-6 their directors, executives, partners, proprietors, as the case may be, their officers, servants and agents or anyone acting for and on their behalf from manufacturing, exporting, marketing, offering for sale, selling, advertising or in any manner dealing in TMT Bars, Steel bars, common metals and their alloys; metal building materials; transportable buildings of metal; materials of metal for railway tracks; non-electric cables and wires of common metal; ironmongery, small items of metal hardware; pipes and tubes of metal; safes; goods of common metal under the trademark ''RATHI'' or from adopting any other mark or label which is identical or deceptively similar to the Plaintiffs registered trade mark ''RATHI'' amounting to infringement of the Plaintiffs registered trademark, passing off, dilution and unfair competition;
ii. Pass an ex-parte ad interim injunction restraining Defendant Nos. 7 from wrongly issuing licenses for the use of the mark ''RATHI'' and/or any other mark identical or deceptively similar to the trademark ''RATHI'' which is not in accordance with Memorandum of Understanding dated 24 June, 1995 and Trust Deed 28th June 1995;
iii. Pass an ex-parte ad interim injunction restraining Defendant Nos. 5, Defendant No. 6 and Defendant No. 8 from dealing in and/or issuing licenses for the use of the mark ''RATHI'' and/or any other mark identical or deceptively similar to the trademark ''RATHI'';
iv. Any other orders as this Hon''ble Court may deem fit and proper in the facts and circumstances of the present case.
2. Before dealing with the application, I shall state the facts in brief. The Rathi family is engaged in the business of manufacture and trading of various steel products including Steel bars, TMT bars etc., for more than 40-50 years. In and around 1942, the parent company, Rathi Steel Rolling Mills (RSRM, for short) was set up by Gordhan Das Rathi, Kanihya Lal Rathi and Hari Kishan Rathi in Loni Road, Shahdara, Delhi. In 1968, RSRM entered into a technical collaboration with M/s Tor Isteg Steel Corporation, Luxembourg through Tor Steel Research Foundation in India for manufacturing cold twisted deformed bars better known as TOR Steel Bars. The Company started rolling its Tor steel under the trademark ''RATHI''.
3. However, in 1969 RSRM was split into two units namely M/s G.D. Rathi Steels Ltd., and M/s K.L. Rathi Steels Ltd. Both the units were rolling the Tor steel with the brand ''RATHI''. M/s G. D Rathi Steels Ltd., was owned by the sons of Late G. D. Rathi, whereas, M/s K.L. Rathi Steel Ltd., owned by C.R. Rathi and family and H.K. Rathi and family. In the year 1970, the sons of Late G.D. Rathi established an Electric Arc furnace plant in Ghaziabad (Uttar Pradesh) in the name of M/s Rathi Ispat Ltd., and in the year 19
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