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2023 Supreme(Del) 843

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Six Continents Hotels Inc. – Appellant
Versus
Ap Leisure Private Limited & Anr. – Respondents
CS(COMM) 44 of 2022 & I.A. 5079 of 2023
Decided On : 15-03-2023

Advocates appeared:
Ms. J. Sharanya, Advocate, for the Plaintiff.
Mr. Ashish Jindal, Advocate, for the Defendant-1 & 2 in person.

Amicable settlement between parties can lead to the decree of a suit and resolution of the dispute without further adjudication.

Headnote:

SETTLEMENT - TRADEMARK DISPUTE - [Order XXIII Rule 3, Section 151 of the CPC] - [No specific act or section referenced]

Fact of the Case:

The parties reached a settlement where the defendants acknowledged the plaintiff's exclusive ownership of the trademark HOLIDAY INN and agreed to cease all use of the Impugned Mark AP HOLIDAY INN and related materials.

Finding of the Court:

The court found that the settlement between the parties resolved the dispute, and as such, nothing remained for adjudication in the suit. The suit was decreed in terms of the settlement.

Issues: Settlement of trademark dispute, acknowledgment of exclusive ownership, cessation of use of infringing mark and materials.

Ratio Decidendi: The court's decision was based on the amicable settlement reached by the parties, which effectively resolved the trademark dispute and rendered further adjudication unnecessary.

Final Decision: The suit was decreed in terms of the settlement, and the plaintiff was entitled to a refund of court fees.

JUDGMENT (Oral)

CS(COMM) 44/2022 & I.A. 5079/2023 (under Order XXIII Rule 3 read with Section 151 of the CPC)

1. The dispute between the parties in the present case stands settled. The terms and conditions of settlement have been set out in para 3 of the present application and are reproduced thus:

    "A. The Defendants acknowledge that the Plaintiff is the exclusive owner and proprietor of the earlier well-known trade mark HOLIDAY INN and HOLIDAY INN formatives (hereinafter collectively referred to as "Earlier Well-Known Trade Mark(s)" and/or "Well-Known Trade Mark HOLIDAY INN"). The Defendants further acknowledge that all rights in law, equity or otherwise, in the Plaintiff's Earlier Well-Known Trade Marks, vest exclusively with the Plaintiff alone, and further, the Defendants undertake to this Hon'ble Court never to challenge the same anywhere in the world, including in India, for any goods/services and/or on any ground(s), whatsoever;

    B. The Defendants, in addition to the above, also acknowledge the fame and reputation of the Plaintiff's Well-Known Trade Mark HOLIDAY INN, in India and internationally, and undertake to this Hon'ble Court never to challenge these rights, at any time in the future, anywhere in the world, including in India, for any goods/services and/or on any ground(s) whatsoever;

    C. The Defendants undertake to this Hon'ble Court that they shall refrain from using the Impugned Mark AP HOLIDAY INN, [IMG], (hereinafter singularly and collectively referred to as the "Impugned Mark") and/or any other mark which is deceptively and/or confusingly similar to or encompasses the Plaintiff's Well-Known Trade Mark HOLIDAY INN, either as a trade mark or part of a trade mark, trade name, or part of a trade name, corporate name, email, domain name or part of a domain name or in any other manner or part thereof, in any other manner whatsoever;

    D. The Defendants undertake to this Hon'ble Court that they ceased use of the Impugned Mark AP HOLIDAY INN, [IMG], and have changed the name of their hotel from "AP HOLIDAY INN" to "AP HOLIDAYS"/"AP HOLIDAY"

    E. The Defendants undertake to this Hon'ble Court that they have recalled/removed all the marketing, promotional and advertising materials, business literature, catalogues, stationary, toiletries from their hotel premises and any other material whatsoever bearing the Impugned Mark AP HOLIDAY INN, [IMG] and/or any other mark which is deceptively and confusingly similar or which encompasses the Plaintiff's Well-Known Trade Mark HOLIDAY INN, and Defendants further agree to destroy such material within 30 (thirty) days from the date of signing the Present Application (hereinafter referred to as the "Present Application");

    F. The Defendants undertake to this Hon'ble Court that they have removed all references and use of the Impugned Mark AP HOLIDAY INN, [IMG] and/or any other mark encompassing the Well-Known Trade Mark HOLIDAY INN from the Defendant's website at the Impugned Domain www.apholidayinn.com (hereinafter referred to as the "Impugned Domain Name"), and confirm that they do not own or operate any other website or domain name containing/forming the Impugned Mark AP HOLIDAY INN or the Well-Known Trade Mark HOLIDAY INN as a part, and the Impugned Domain Name is no longer registered in the name of the Defendants;

    G. The Defendants agree and undertake to cease use of the Impugned Domain Name. The Defendants shall cooperate with the Plaintiff to obtain an order seeking a direction to the Domain Name Registrar (being Public Domain Registry Limited, doing business as, PUBLICDOMAINREGISTRY.COM, which is a wholly owned subsidiary of The Endurance International Group, Inc.) from the Hon'ble Court to transfer the Impugned Domain Name to the Plaintiff within 7 (seven) days from the date of passing the consent order. Further the Defendants agree and undertake not to register and/or use any other domain name(s) which consists of or contains the Well-Known Trade Mark HOLIDAY INN, in future;

    H.

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