IN THE HIGH COURT OF DELHI AT NEW DELHI
Asha Menon, J.
Saisons Trade And Industry Private Limited - Appellant
Versus
Maithri Aquatech Private Limited & Ors. - Respondents
Civil Suit (COMM) No. 214 of 2021
Decided On : 02-03-2022
Jurisdiction - Civil Procedure Code - Section 20(b), Section 151 - Escorts Limited v. Tejpal Singh Sisodia, 2019 SCC OnLine Del 7607 - ajay Pal Sharma vs. Udaiveer Singh [Order dated 28th July, 2020 in CS(OS)139/2020] - World Wrestling Entertainment v. Reshma Collection, 2014 SCC OnLine Del 2031 - Suresh Kumar Vs. Maharashtra State Electricity Distribution Company Ltd., 2014 SCC OnLine Bom 2873 - Exphar Sa & anr. Vs Eupharma Laboratories Ltd. & anr., 2004 (3) SCC688 - RSPL Limited Vs. Mukesh Sharma & Ors., 2016 SCC OnLine Del 4285 - Patents act, 1970 - Section 104, Section 105, Section 106, Section 15, Section 16, Section 18, Section 19, Section 20
Fact of the Case:
The court disposed of the application for return of the plaint and the application seeking leave to file the suit in Delhi. The defendant No.1 argued lack of jurisdiction, delay in filing, and lack of urgency, while the plaintiff argued that Delhi courts had jurisdiction and that the suit was filed for permanent and mandatory injunction against the defendants.
Finding of the Court:
The court found that the plaintiff had complied with the provisions of Section 20(b) of the CPC and had disclosed sufficient justification for permitting the trial of the suit in Delhi. The court also noted that the cause of action partly arose in Delhi due to online transactions and the location of the defendants No.2 & 3.
Issues: Jurisdiction under Section 20(b) of the CPC, delay in filing, lack of urgency, and compliance with the Patents act, 1970.
Ratio Decidendi: The court applied the principles from various judgments to determine jurisdiction, including the need to consider the averments in the plaint and documents annexed thereto, and the location of online transactions and defendants' business activities.
Final Decision: The application for leave to file the suit in Delhi was allowed, and the application for return of the plaint was dismissed.
JUDGMENT
asha Menon, J. - I.as. 13230/2021 (by the defendant No.1 under Order VII Rule 10 read with Section 151 CPC for return of plaint) & 6064/2021 (by the plaintiff under Section 20(b) r/w 151 CPC seeking leave of the court to file the suit in Delhi)
1. This order will dispose of the application filed on behalf of defendant No.1 under Order VII Rule 10 read with Section 151 of the Civil Procedure Code 1908 (for short 'CPC') for return of the plaint as well as the application of the plaintiff under Section 20(b) of the CPC seeking leave to file the suit in Delhi.
2. It is the contention of Mr. Vinay Navare, learned senior counsel for the defendant No.1, that the suit has been filed in Delhi, whereas neither the plaintiff nor the defendant No.1 was located in Delhi. according to learned senior counsel for defendant No. 1, the plaintiff had an office in Mumbai and the defendant No.1 was located in Hyderabad and therefore, under Section 20 CPC, leave of this court to file the suit here could not have even been sought.
3. Relying on the judgment of a Coordinate Bench of this Court in Escorts Limited v. Tejpal Singh Sisodia, 2019 SCC OnLine Del 7607, it was submitted that online activity through a website, which was accessible from all parts of the world could not vest any and every court with jurisdiction. Moreover, there was no document placed on the record to show that the defendants No.2 and 3 had any business in Delhi or that some person had actually accessed the website in Delhi and purchased the commodity from the defendants No.2 and 3. Thus, when the defendant No.1 had not acquiesced to the jurisdiction of this court, the plaint was liable to be returned. Reliance in this regard has been placed on the order of a Coordinate Bench of this Court in ajay Pal Sharma vs. Udaiveer Singh [Order dated 28th July, 2020 in CS(OS)139/2020].
4. In the application, however, several other grounds have also been taken. Rejection of the plaint was sought on the ground that, though the plaintiff had come to know of the alleged infringement some time in 2019, the suit was filed only on 28th april, 2021. Further, the plaintiff's suit patent was expiring on 25th February, 2022, and it had approached the court at the fag end of the expiry of its patent. Thus, there was no urgency disclosed by the plaintiff. Further, there was no averment that the plaintiff enjoyed exclusivity to the patent as the plaintiff was only a licensee and the suit filed by it was not maintainable.
5. It was further stated that this court has no territorial jurisdiction, as not even a single transaction has been shown to have taken place within the jurisdiction of this Court. Further, the plaintiff at best could claim only rights to design and not to a scientific invention and since the process involved in the products of the defendant No.1 was different, there was no relief that could be claimed against defendant No.1. Finally, it was stated in the application that the plaintiff's pre-grant opposition was pending before the Patent Office and thus, the suit was without cause of action.
6. Learned senior counsel for the defendant No.1, however stressed the lack of jurisdiction. The learned senior counsel urged that the plaint be returned for being filed in the court with jurisdiction, namely Hyderabad, where the defendant No.1 was located.
7. In the reply filed to this application, as also urged during arguments on behalf of the plaintiff by Mr. Neeraj Grover, learned counsel for the plaintiffs, the suit had been filed for permanent and mandatory injunction against the three defendants to restrain them from violating and infringing the rights of the plaintiff in the suit patent. Therefore, the application under consideration had no substance whatsoever. In the reply, it has been stoutly denied that the suit was filed beyond limitation, or that there was no urgency, or that the plaintiff being a licensee had no right to file the present suit. It was submitted that these averment
The main legal point established is the application of Section 20(b) of the CPC in determining jurisdiction for filing a suit, especially in cases involving online transactions and business activitie....
Jurisdictions in online transactions can be established where any part of the cause of action arises, such as accessing websites and completing transactions within that jurisdiction.
Territorial jurisdiction in trademark infringement suits can be established based on alleged marketing actions in the jurisdiction, upheld by assuming the truth of the plaint's claims pending trial.
Jurisdiction in trade mark cases arises where cause of action occurs, including digital accessibility, not solely based on physical business locations.
Territorial jurisdiction in trademark infringement cases requires proof of actual sales in the jurisdiction, not mere trap transactions, supported by relevant documentation.
The central legal point established is that for territorial jurisdiction under Section 134(2) of the Trade Marks Act, the plaintiff's principal place of business and the cause of action are determina....
Jurisdiction in internet-based disputes is established through interactivity and accessibility of the Defendant's website, creating potential consumer confusion.
Civil Law - Return of plaint - Territorial jurisdiction - It is not possible to reach at a conclusion that no cause of action has arisen within the territorial jurisdiction of this court on a mere re....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.