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IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Anheuser-Busch LLC - Appellant
Versus
Mr. Surjeet Lal & Anr. - Respondents
CS (COMM) 1305/2018 & I.A. 17625/2018
Decided On : 14-03-2022
Civil Suit - Suit for permanent injunction - Business of manufacture and sale of beer – Trade Mark “BUDWEISER” – Marks of ‘BALCKFORT’ and POWER COO L - Question of infringement or passing off is concerned - Seeking permanent injunction restraining Defendants from using any glass bottles with embossed word ‘Budweiser' - Plaintiff - Anheuser-Busch LLC is that it is owner of mark 'BUDWEISER'. It was submitted by ld. Counsel for Plaintiff that Defendant is manufacturer and seller of beer under the marks 'BLACK FORT’ and 'POWER COOL' - Grievance of Plaintiff is that the bottles of beer manufactured by Plaintiff with the embossed word ‘BUDWEISER' are being used by Defendants by re-labelling them as 'BLACK FORT’ and 'POWER COOL'. Images of such bottles, as also physical bottles, were also produced before this Court.
Finding of the court :
The sale of any product with the recycled bottles of another manufacturer would result in infringement and passing off. Though the bottle itself may be a genuine bottle which may have been put by Plaintiff originally in market, after contents are consumed and bottle reaches recycling cycle, Defendant’s use of such bottles which have the Plaintiff’s trade mark embossed on them would cause confusion as to its source. However, in view of fact that Defendant has candidly made a statement and has given an undertaking before this Court as captured above, assurances and undertakings given by authorized signatory of Defendant Company are taken on record and accepted. In future, Defendants shall ensure that recycled ‘BUDWEISER' bottles are not used for beer, manufactured and sold by them, under marks 'BLACK FORT’ and 'POWER COOL', or under any other mark. A greater degree of supervision shall be exercised at manufacturing plant of Defendant Company, and random checks and inspections shall also be conducted by Defendants to ensure that bottles used in its manufacturing plant do not, in any manner, bear mark ‘BUDWEISER' - However, in future, if any ‘BUDWEISER' bottles are found by Plaintiff to be emanating from Defendants’ factory, Plaintiff shall immediately give notice of same to Defendants who shall take remedial measures immediately, failing which, Plaintiff would be entitled to avail of its remedies, in accordance with law, including claim of damages, which was sought in present suit as well - In future, if any ‘BUDWEISER' bottles are found by Plaintiff to be emanating from Defendants’ factory, Plaintiff shall immediately give notice of same to Defendants who shall take remedial measures immediately, failing which, Plaintiff would be entitled to avail of its remedies, in accordance with law, including claim of damages, which was sought in present suit as well - Defendants shall, henceforth, stand restrained from using, manufacturing or selling mark ‘BUDWEISER', even in recycled bottles, or in any manner whatsoever, in respect of beer manufactured and sold by Defendants.
Result: Suit is decreed and Applications disposed of.
ORDER
Prathiba M. Singh, J. (Oral). - This hearing has been done through hybrid mode.
2. The present suit has been filed by the Plaintiff seeking permanent injunction restraining the Defendants from using any glass bottles with the embossed word 'Budweiser'. The prayers sought in the suit are as under:
"i. An order for permanent injunction restraining the Defendants, its Directors, wholesalers, distributors, partners, or proprietor as the case may be, its officers, servants and agents from using, manufacturing, selling, exporting, importing, offering for sale, distributing, advertising, directly or indirectly dealing in any bottle and/or packaging and/ or label or any material amounting to infringement of the Plaintiffs registered trademarks "BUDWEISER" under registration numbers 958378,958380,194586, 645366 and any other trade mark deceptively similar to the Plaintiffs registered trademarks amounting to infringement; and
ii. An order for permanent injunction restraining the Defendants, its Directors, wholesalers, distributors, partners, or proprietor as the case may be, its officers, servants and agents from manufacturing, selling, exporting, importing, offering for sale, distributing, advertising, directly or indirectly dealing in any bottle and/or packaging and/ or label or any material other goods bearing mark "BUDWEISER" or any other trade mark deceptively similar to the Plaintiff s trade mark amounting to passing off of the Defendants' goods as that of the Plaintiff; and
iii. An order for permanent injunction restraining the Defendants, its Directors, wholesalers, distributors, partners, or proprietor as the case may be, its officers, servants and agents from manufacturing, selling, exporting, importing, offering for sale, distributing, advertising, directly or indirectly dealing any bottle and/or packaging and/ or label or any material other goods bearing mark "BUDWEISER" or any other trade mark deceptively similar to the Plaintiffs trade mark amounting to unfair competition and dilution and tarnishment of the goodwill, and reputation of the Plaintiff; and
iv. An order for damages of Rs 2,00,05,000/- be passed in favour of the Plaintiff and against the Defendants on account of the unauthorized use of the impugned marks and a decree for the said amount be passed in favour of the Plaintiff;
v. An order for rendition of accounts of profits illegally earned by the Defendants on account of the selling or offering for sale its beer in the bottles embossed with the Plaintiffs trade mark "BUDWEISER" and a decree be passed for the amount found due in favour of the Plaintiff on such rendition of accounts; and
vi. An order of deliver up to the Plaintiff all the bottles embossed with the trade mark "BUDWEISER"; and
vii. An order for costs of the proceedings; and Any further orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of this case."
3. The present suit was listed on 20th December, 2018. The case of the Plaintiff - Anheuser-Busch LLC is that it is the owner of the mark 'BUDWEISER'. It was submitted by Id. Counsel for the Plaintiff that the Defendant is the manufacturer and seller of beer under the marks 'BLACK FORT' and POWER COOL'. The grievance of the Plaintiff is that the bottles of beer manufactured by the Plaintiff with the embossed word 'BUDWEISER' are being used by the Defendants by re-labelling them as 'BLACK FORT' and POWER COOL'. Images of such bottles, as also physical bottles, were also produced before this Court.
4. On the said date i.e., 20th December, 2018, Id. Counsel for the Defendants had submitted that the Defendant No.2 Company-M/s. SOM Distilleries and Breweries Ltd., is in the business of manufacture and sale of beer under the marks 'BLACK FORT' and POWER COOL'. The explanation proffered by the Defendants was that the bottles had come into the Defendant's system through kabadiwalas, and therefore, entered the manufacturing line of the Defendant No.2-Company. In view of the large volu
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