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2006 Supreme(Del) 2404

IN THE HIGH COURT OF DELHI
Reva Khetrapal, J.
The Jay Engineering Works Ltd. - Appellant
Versus
Sh. Ramesh Aggarwal - Respondent
IAs No's. 5813-14 of 2002 in CS (OS) No. 971 of 2002
Decided On : 07-11-2006

Advocates Appeared:
For the Appellant : A.S. Chandhiok, Ekta Kapil and Sandeep Mahapatra.
For the Respondent: Mohan Vidhani.

The main legal point established in the judgment is the interpretation of the provisions of Section 62(2) of the Copyright Act and its impact on the jurisdiction of the court for infringement of trademark, design, and passing off.

Headnote:

Jurisdiction - Trade and Merchandise Marks Act, 1958 - Copyright Act, 1957 - Designs Act, 2000 - Section 62(2) of the Copyright Act - Jurisdiction for infringement of trademark, design, and passing off - Court analyzed the provisions of Section 62(2) of the Copyright Act and its applicability to the Trade and Merchandise Marks Act, 1958 and Designs Act, 2000 - Court discussed the interpretation of 'carries on business' and 'personally works for gain' - Court referred to the Supreme Court's decision in Dhodha House Vs. S.K. Maingi, AIR 2006 SC 730 and its impact on the jurisdiction of the court for infringement of trademark, design, and passing off - Court concluded that the jurisdiction of the court for infringement of copyright was established, but not for infringement of trademark, design, and passing off

Fact of the Case:

The defendant filed applications seeking to oust the suit from the jurisdiction of the court, arguing that the court lacked territorial jurisdiction to entertain the suit. The plaintiff alleged infringement of trademark, copyright, and designs by the defendant in the Middle East countries. The plaintiff claimed that the cause of action arose when it discovered the defendant's infringement of its intellectual property rights.

Finding of the Court:

The court analyzed the provisions of Section 62(2) of the Copyright Act and its applicability to the Trade and Merchandise Marks Act, 1958 and Designs Act, 2000. The court concluded that the jurisdiction of the court for infringement of copyright was established, but not for infringement of trademark, design, and passing off. The court held that the plaintiff could file a fresh suit in the court of competent jurisdiction for the reliefs pertaining to infringement of trademark, design, and passing off.

Issues: The main issue was whether the court had jurisdiction for infringement of trademark, design, and passing off under the Trade and Merchandise Marks Act, 1958 and Designs Act, 2000, based on the provisions of Section 62(2) of the Copyright Act.

Ratio Decidendi: The court's decision was based on the interpretation of 'carries on business' and 'personally works for gain' as per the provisions of Section 62(2) of the Copyright Act. The court also relied on the Supreme Court's decision in Dhodha House Vs. S.K. Maingi, AIR 2006 SC 730, which clarified the jurisdiction of the court for infringement of trademark, design, and passing off.

Final Decision: The court concluded that the jurisdiction of the court for infringement of copyright was established, but not for infringement of trademark, design, and passing off. The plaintiff was allowed to file a fresh suit in the court of competent jurisdiction for the reliefs pertaining to infringement of trademark, design, and passing off.

JUDGMENT :

Reva Khetrapal, J.-

1. By this order I propose to dispose of the above-mentioned two applications, both of which have been filed by the defendant seeking to oust the present suit from the jurisdiction of this Court. Though the first application is styled as one under Order VII Rule 11 of the CPC and the second as one u/s 21 of the Code, de hors their garb both applications are under Order VII Rule 10 of the Code for return of the plaint on the ground that this Court is not clothed with territorial jurisdiction to entertain the suit.

2. Although initially counsel for plaintiff sought to urge that Section 21 of the CPC could be invoked only in the appellate and revisional forum and not in the original forum and, in any event, precludes a prayer for return of the plaint, subsequently he contended himself by urging that without prejudice to his aforesaid contentions and assuming both applications to be a case of "defective labelling", the merits of the defendant's plea of lack of jurisdiction may be gone into in the backdrop of the averments made in the plaint alone, without looking into the defense of the defendant.

3. Order VII Rule 1 of the Code makes it imperative for the plaintiff to incorporate in the plaint the particulars as to the facts Constituting the cause of action and the facts showing the court has jurisdiction. It is, Therefore, trite that the question of jurisdiction has to be decided by looking into the averments made in the plaint and not by the defense which may be set up by the defendant. It is also legally well-established that as cause of action is a bundle of facts which, if arises within the jurisdiction of the Court concerned empowers the Court to entertain the matter, it is not enough to look only at the paragraph of plaint concerning cause of action (or any other paragraph in isolation). The entire plaint must be taken into consideration and viewed in its entirety to determine the conferment of jurisdiction in the court concerned. Bearing in mind these broad principles, I embark upon an examination of the plaint.

4. It is relevant to mention at this juncture that the present suit is a composite suit under the following enactments:

a) Trade and Merchandise Marks Act, 1958 claiming infringement of trademark based on right in the trade mark and passing off.

b) Copyright Act, 1957 for infringement of registered and unregistered copyright and

c) Designs Act, 2000 for infringement of registered design

5. The plaintiff has made allegations against the defendant which are incorporated in paragraphs 19, 20 and 21 of the plaint, which are reproduced as under:

19. That in or around March 2002, to the shock of the plaintiff, it was discovered that someone was manufacturing, exporting and selling ceiling fans in the Middle East countries under the brand name "ASHA" which amounts to infringement of the plaintiff's registered copyrights, trademarks, designs and constitutes passing off the goods as those of the plaintiff's goods. In or around the middle of March 2002, the plaintiff obtained one ceiling fan of the brand name "ASHA" from Dubai and was shocked to see that the fan and the packaging constituted infringement of the plaintiff's copyrights, trademarks, designs and that some one was passing off its goods as those of the plaintiff's goods.

20. It is relevant to point out that on the packaging and the ceiling fan there was no indication of who the manufacturer was. The only indication given was of the name of the importer being Bin Wahlan Trading Co. L.L.C., Dubai. After making inquiries the plaintiff in April 2002 came to know that the ceiling fans were being supplied from Hyderabad or Bombay. On further inquiries, the plaintiff came to know that the defendant was the supplier of the said ASHA fans. But the plaintiff did not have any proof. The plaintiff has now on 10th May 2002 obtained a copy of the invoice cum delivery challan prepared by the defendant for exporting the fans to the said importer, M.s, Bin Wah

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