IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Louis Vuitton Malletier – Appellant
Versus
Capital General Store & Ors. – Respondents
CS(COMM) 469 of 2021 & LA. 15066 of 2022
Decided On : 06-02-2023
Interim Injunction - Order XXXIX Rule 2A - CPC - [VIOLATION OF INTERIM INJUNCTION] - [CPC 1908, Order XXXIX Rule 2A] - The court discussed the violation of interim orders of injunction and the application under Order XXXIX Rule 2A of the CPC. The court referred to various judgments and emphasized the need to view violations of interim orders strictly to maintain the rule of law. The court also discussed the divergence of opinion on whether Order XXXIX Rule 2A confers a power of contempt and the nature of disobedience required for punitive action under the said provision. The judgment highlighted the difference between enforcement of orders under Order XXXIX Rules 1 and 2 and orders made in contempt of court, emphasizing that Order XXXIX Rule 2A is intended to compel and enforce obedience of the order of interim injunction. The court also deliberated on the appropriate order to pass in cases of disobedience and counterfeiting, ultimately directing the defendant to pay a specified amount to the plaintiff or face incarceration in civil prison.
Fact of the Case:
The plaintiff, Louis Vuitton Malletier, filed an application under Order XXXIX Rule 2A of the CPC alleging violation of the interim order of restraint passed by the court against the defendants who were manufacturing and marketing articles bearing counterfeit LV marks. The defendants admitted to the violation and sought leniency, while the plaintiff insisted on strict punishment to deter counterfeiters.
Finding of the Court:
The court found the defendants guilty of breaching the interim injunction and emphasized the seriousness of counterfeiting, stating that the defendants abandoned any right to equitable consideration. The court deliberated on the appropriate sentence and directed the defendant to pay a specified amount to the plaintiff or face incarceration in civil prison.
Issues: The issues involved the violation of the interim order of restraint, the nature of disobedience required for punitive action under Order XXXIX Rule 2A, and the appropriate sentence to be awarded in cases of disobedience and counterfeiting.
Ratio Decidendi: The court held that violations of interim orders should be viewed strictly to maintain the rule of law and emphasized the need to send a deterrent message to counterfeiters. The court also highlighted the difference between enforcement of orders under Order XXXIX Rules 1 and 2 and orders made in contempt of court, stating that Order XXXIX Rule 2A is intended to compel and enforce obedience of the order of interim injunction.
Final Decision: The court directed the defendant to pay a specified amount to the plaintiff within a specified period, failing which the defendant would suffer incarceration in civil prison.
JUDGMENT
I.A. 15066/2022 (under Order XXXIX Rule 2A of the CPC) in CS(COMM) 469/2021
1. Interlocutory orders of injunction are passed by this Court, on a daily basis, in intellectual property matters. The Court finds itself faced, in several such cases, with applications under Order XXXIX Rule 2A of the Code of Civil Procedure, 1908 (CPC), by plaintiffs complaining that the defendants have violated the interim order of injunction. In many such cases - as in the present - the allegation is found to be true. The violation, however, generally stops on or before the date when the court issues notice on the application under Order XXXIX Rule 2A. The plaintiff, however, insists, and not without justification, that the defendant cannot be let off. A violator, asserts the plaintiff, is a violator, and deserves to be punished. The Supreme Court echoes this sentiment, in para 54 of Surya Vadanan v. State of Tamil Nadu, (2015) 5 SCC 450:
"54. As has been held in Arathi Bandi v. Bandi Jagadrakshaka Rao, (2013) 15 SCC 790, a violation of an interim or an interlocutory order passed by a court of competent jurisdiction ought to be viewed strictly if the rule of law is to be maintained. No litigant can be permitted to defy or decline adherence to an interim or an interlocutory order of a court merely because he or she is of the opinion that that order is incorrect--that has to be judged by a superior court or by another court having jurisdiction to do so. It is in this context that the observations of this Court in Sarita Sharma v. Sushil Sharma, (2000) 3 SCC 14, and Ruchi Majoo v. Sanjeev Majoo, (2011) 6 SCC 479, have to be appreciated. If as a general principle, the violation of an interim or an interlocutory order is not viewed seriously, it will have widespread deleterious effects on the authority of courts to implement their interim or interlocutory orders or compel their adherence."
Order XXXIX Rule 2A vis-a-vis contempt of court
2. There is a divergence of opinion, in judgments of the Supreme Court, on whether Order XXXIX Rule 2A confers, or does not confer, a power of contempt, and also, therefore, whether the disobedience which would invite punitive action under the said provision has necessarily to be willful. Food Corporation of India v. Sukh Deo Prasad, (2009) 5 SCC 665 and U.C. Surendranath v. Mambally's Bakery, (2019) 20 SCC 666 hold in the affirmative, thus:
Food Corporation of India (supra):
"38. The power exercised by a court under Order 39 Rule 2-A of the Code is punitive in nature, akin to the power to punish for civil contempt under the Contempt of Courts Act, 1971. The person who complains of disobedience or breach has to clearly make out beyond any doubt that there was an injunction or order directing the person against whom the application is made, to do or desist from doing some specific thing or act and that there was disobedience or breach of such order. While considering an application under Order 39 Rule 2-A, the court cannot construe the order in regard to which disobedience/breach is alleged, as creating an obligation to do something which is not mentioned in the `order', on surmises, suspicions and inferences. The power under Rule 2-A should be exercised with great caution and responsibility."
U.C. Surendranath (supra):
"7. For finding a person guilty of wilful disobedience of the order under Order 39 Rule 2-A CPC there has to be not mere `disobedience' but it should be a `wilful disobedience'. The allegation of wilful disobedience being in the nature of criminal liability, the same has to be proved to the satisfaction of the court that the disobedience was not mere `disobedience' but a `wilful disobedience'. As pointed out earlier, during the second visit of the Commissioner to the appellant's shop, tea cakes and masala cakes were being sold without any wrappers/labels. The only thing which the Commissioner has noted is that "non-removal of the hoarding" displayed in front of the appellant's shop for which the a
Amazon.Com NV Investment Holdings LLC v. Future Retail Ltd.
Food Corporation of India v. Sukh Deo Prasad, (2009) 5 SCC 665 [Para 2, 25
Surya Vadanan v. State of Tamil Nadu
U.C. Surendranath v. Mambally's Bakery, (2019) 20 SCC 666 [Para 2, 25
Violations of interim orders should be viewed strictly to maintain the rule of law, and the court should send a deterrent message to counterfeiters.
Willful disobedience of court orders, even if later complied with, can lead to significant penalties to uphold the authority of the court.
Power to order civil imprisonment under Order XXXIX Rule 2A curtails an individual's fundamental right, albeit through a process of law.
Point of Law; application under Order XXXIX Rule 2A of CPC is filed, the Court shall register that as Miscellaneous and issue notice of the same to the defendants contemnors since no such procedure w....
The court emphasized that evidence is required to establish breach of injunction orders, and punitive measures must be proportionate to the nature of disobedience.
“3A Where an injunction has been granted without giving notice to the opposite party, the court shall make an endeavour to finally dispose of the application within thirty days from the date on which....
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