Settlement agreements reached through mediation can be decreed by the court, and parties are bound by the terms of the agreement, with defaulting parties being held liable for contempt of court.

JUDGMENT :

C. Hari Shankar, J.

The dispute between the parties stands settled with the intervention of the Delhi High Court Mediation and Conciliation Centre. The settlement agreement dated 18th April 2023 has been placed on record. The terms of settlement read thus:

“1. The Second Party acknowledge the First Party's right, title and interest in (i) the mark BETNESOL, (ii) variations of the mark BETNESOL, such as BETNESOL-N and BETNESOL FORTE, (iii) the silver-coloured aluminum strip packaging with red lettering that features a distinctive get-up and layout (as shown in Annexure-B), (iv) the outer box packaging with red stripes featuring a distinctive get-up and layout (as shown in Annexure-C), (v) the orange-coloured injection outer box packaging featuring a distinctive get-up and layout (as shown in Annexure-D) and (vi) the orange-coloured injection vial packaging featuring a distinctive get-up and layout (as shown in Annexure-E). The mark BETNESOL and variations of the mark BETNESOL referred to in paragraphs (l)(i) and (l)(ii) are hereinafter collectively referred to as the “the Plaintiffs Marks”, and the packaging referred to in paragraph l(iii), l(iv), l(v) and l(vi) is hereinafter collectively referred to as the “Plaintiffs Packaging.”

2. The Second Party states that it is engaged in the business of manufacture, marketing, and sale of pharmaceutical and medicinal products, specifically, tablets and injections, under the mark BESOL. The current packaging for the tablets bearing the BESOL mark are sold in a silver-coloured aluminium strip packaging with red lettering, which in turn, is contained in a red and white outer packaging (shown in Annexure-F) and the injections bearing the BESOL mark are sold in an orange-coloured injection vial packaging, which in turn are contained in an orange outer packaging (shown in Annexure-G) (hereinafter, the packaging shown in Annexures F and G is collectively referred to as “Defendants’ Objectionable Packaging”).

3. The Second Party state that as of the date of this settlement agreement, they have ceased, directly or indirectly, all use, marketing, manufacturing, and sale of goods, including tablets and injections, bearing the Defendants’ Objectionable Packaging, in any manner or form, and shall forever cease and desist from the use, marketing, manufacturing and sale of goods bearing the Defendants’ Objectionable Packaging.

4. The Second Party undertake that they will never, directly, or indirectly, in the future, use (i) the First Party/Plaintiffs Marks & Plaintiffs Packaging, as described herein above (ii) any mark similar to the Plaintiff s Marks, except the “BESOL” mark, (iii) the Defendants’ Objectionable Packaging, (iv) any packaging similar to the Plaintiffs Packaging on and in relation to any pharmaceutical or medicinal products, including, but not limited to, tablets and injections. The term ‘use’ includes, but is not limited, to use on and in relation to tablets/injections and/or any other pharmaceutical or medicinal products, on promotional and advertising material, on the Second Party/Defendant's own website or its listings on third-party business listing websites and epharmacies.

5. The Second Party undertake to only use the “BESOL” mark in a standalone manner, and will not combine “BESOL” with any other words or terms in any manner, or use any BESOL formative mark(s) in relation to its goods/services. That the Second Party further undertake that, without prior express written approval by the First Party, the Second Party will not use, manufacture, market or sell products under the trade mark BESOL in any other packaging other than the new approved proposed packaging attached as Annexure-H and Annexure-I.

6. That the First Party acknowledges and accepts that the Second Party would be entitled to seek trade mark registration for its trade mark BESOL and its packaging as given in Annexure-H and Annexure-I and the First Party/Plaintiff will not oppose the said application for trade ma