The main legal point established in the judgment is the grant of permanent injunction and award of damages in a trademark infringement case.

JUDGMENT

Prathiba M. Singh, J. - This hearing has been done through hybrid mode.

2. The present suit has been filed by the Plaintiff - Aero Club seeking permanent injunction restraining the infringement of trademark and copyright, passing off, damages, rendition of accounts of profit, delivery up, costs and other reliefs. The Plaintiff claims to be the proprietor of the following mark "WOODLAND" and its variants, used in respect of belts and wallets manufactured, marketed and sold by the Plaintiff. The marks which are the subject matter of the present suit (hereinafter, "impugned marks") are depicted below:

3. On the other hand, the Defendant No.1 - M/s. Bhawna Belt Co. and Defendant No.2 - M/s. Gun Gun Belt House are wholesalers of belts and wallets located in Sadar Bazar, Delhi. The case of the Plaintiff is that the Defendants were engaged in the sale of counterfeit products under the Plaintiff's mark "WOODLAND".

4. Vide order dated 21st December, 2021, an ex-parte ad interim injunction was granted in the present suit, in the following terms:

"22. This Court has given its careful thought to the submissions advanced by the plaintiff and gone through the plaint and other material placed on record and is prima facie satisfied that a ease for grant of ex-parte ad-interim stay in favour of plaintiff and against the defendants is made out.

23. Accordingly, till further orders, the defendants and their proprietors, principal officers, partners, servants, representatives, affiliates, franchises, stockists, sister concerns, dealers and agents or any other persona claiming under or through them or acting in concert with them are restrained from manufacturing, offering for sale, selling, advertising, directly or indirectly dealing in, in any manner bearing the registered trademarks Woodland (word mark), the "Tree Device" and the "Woodland Label"or any similar trademark amounting to an infringement of plaintiff's registered trademarks, as also passing off of their goods as emanating from the plaintiff."

5. Thereafter, vide order dated 29th March, 2022, the Plaintiff and Defendant No.2 were referred to mediation under the aegis of the Delhi High Court Mediation and Conciliation Centre.

6. Today, it is submitted by ld. Counsels for the parties that the disputes have been resolved. Settlement agreement dated 20th September, 2022, between the Plaintiff and Defendant No.2 - Gun Gun Belt House, has been placed before the Court. The said settlement agreement also mentions the name of Defendant No.1 - Bhawna Trading Co., however, the parties are clear that the settlement is only between the Plaintiff and Defendant No.2.

7. This Court has perused the settlement agreement dated 20th September, 2022 between the Plaintiff and Defendant No.2. The terms of settlement are set out in paragraph 5(i) to 5(xi) of the said settlement agreement. As per the said terms, the Defendant No.2 acknowledges the rights and ownership of the Plaintiff in the impugned marks. The Defendant No.2 is also willing to suffer a permanent injunction restraining the use of the impugned marks, as also, the original artistic work of the Plaintiff. The settlement agreement further records that all the products bearing the impugned marks, seized by the Local Commissioner, were handed over to the Plaintiff. A sum of Rs.70,000/- has been paid as damages to the Plaintiff in the form of demand draft, which has been encashed.

8. This Court is of the opinion that the terms of settlement are lawful and there is no impediment in recording the same. The Plaintiff and Defendant No.2, and all others acting for or on its behalf shall be bound by the terms of settlement. In view of the settlement between the Plaintiff and Defendant No.2, the present suit is decreed qua Defendant No.2, in terms of paragraphs 5(i) to 5(xi) of the settlement agreement dated 20th September, 2022.

9. Insofar as the Defendant No.1 is concerned, summons have been issued in the matter, vide order dated 21st December, 2021. A per