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2022 Supreme(Del) 320

IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Inter Ikea Systems B V - Appellant
Versus
Italica Floor Tiles Pvt. Ltd. & Anr. - Respondents
CS(Comm) 628/2019
Decided On : 03-01-2022

A party should not suffer for the inaction or negligence of their advocate, and every party has the right to be heard in a suit.

Headnote:

Trademark Infringement - Trademark Act - Section 29(5)

Fact of the Case:

The defendants, engaged in the business of making floor tiles, were proceeded ex parte in a suit for trademark infringement. They claimed to have engaged a lawyer and made payment, but were not informed about the case's status. The court considered whether the defendants had knowledge of the proceedings and whether they had a prima facie case in their favor.

Finding of the Court:

The court found that the defendants had engaged a lawyer and made payment, but were not informed about the case's status. It also found that the defendants had been using the trademark 'Italica' since 2004 and were registered under the name Italica Floor Tiles Private Limited. The court allowed the defendants to set aside the ex parte decree and granted them 30 days to file their written statement.

Issues: The main issue was whether the defendants had sufficient cause for non-appearance in the case and whether they had a prima facie case in their favor.

Ratio Decidendi: The court applied the principle that a party should not suffer for the inaction or negligence of their advocate. It also considered the defendants' claim of ignorance due to their location in Gujarat and the lack of information from their advocate. The court emphasized the right of every party to be heard in a suit.

Final Decision: The court allowed the defendants to set aside the ex parte decree and granted them 30 days to file their written statement.

ORDER

LA. 3466/2020 (u/O IX Rule 13 CPC) & I.A. 3467/2020 (u/S 151 CPC) in CS(COMM) 628/2019

1. In the present suit for permanent injunction restraining infringement of trademarks, passing off, rendition of accounts, damages and delivery up, an exparte decree was passed this Court vide judgment and order dated 31.01.2020 against the defendants i.e. the applicants herein, which is subject matter of challenge of the above captioned first applicants.

2. By the above captioned second application, applicants/defendants are seeking stay of order dated 05.12.20219 vide which exparte ad interim injunction was granted in favour of plaintiffs and against the applicants/defendants as well as order and judgment dated 31.01.2020, vide which suit was exparte decreed against the applicants/defendants.

3. At the hearing, learned counsel appearing on behalf of the applicants/defendants had submitted that defendants are in the business of making Floor tiles and based out of Morbi, Gujrat under the name and style of "Italica". According to applicants/defendants "Italica" came into existence in the year 2004 for manufacturing and distributing, supreme and genuine top notch quality tiles in India and to the world and has established a large distribution network which consists of more than 300+ dealers all over the world. Learned counsel submitted that defendants strive for creating new, original and distinguished designs for its tiles, with the sole intention of giving its customers strikingly different and attractive upscale decorative tiles, in order to maintain its reputation and goodwill.

4. It is further claimed on behalf of applicants/defendants that the trade mark "Italica" is registered under Clause-19 in favour of defendant No. I/company under the name Italica Floor Tiles Private Limited since the year 2005 and under Clause-11 since the year 2017. It is next submitted that defendant No.2- Ikaa Granito Private Limited was incorporated in the year 2016 and its first invoice was issued in July, 2017, which bore the trade mark "Italica", since permitted by defendant No. 1 for promotion of defendant No.2 company.

5. During the course of hearing learned counsel for applicants/defendants emphasized that defendant No.2 is not using the mark IKAA but it is a part of corporate name of the company, which had been duly approved by the Registrar of Companies as the name of the company and thereby, there is no deliberate attempt to pass of the plaintiffs trademark. It was empathically submitted that the Ikaa Granito Private Limited is not the trademark of the defendant No. 2 and is not used as the trade mark of defendants. Attention of this Court was also drawn to the spellings and pronouncement of plaintiff s trade mark and defendants' trade name and trade mark, which is as under:-

Trademark of Plaintiff

Company name of Defendant No.2

IKEA

IKAA GRANITO PRIVATE LIMITED TRADEMARK used is "ITALICA"

6. It was also contended that there cannot be any confusion between the two trade names i.e. "IKEA" and "Italica" and Ikaa Granito Private Limited is only the corporate name of the defendant No.2 and is limited only to the production and sale of tiles and so, it cannot be said that defendants have deliberately attempted to infringe plaintiffs trade mark or attempted to passing off the same. Also, it was submitted that the name of defendant No.2 company is found only on the packaging in compliance of various laws, rules and regulations requiring the name of the manufacturer/marketeer to be so mentioned and mere affixation of the Company name on the boxes containing tiles, marbles etc does not qualify as a use of trademark and is not covered under provisions of the Section 29 of the Trademarks Act.

7. With regard to defendants being proceeded ex parte, learned counsel for the defendants submitted that defendants had received summon of the suit on

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