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C. HARI SHANKAR
SML Limited – Appellant
Versus
Sulphur Crop Care Private Limited – Respondent
ORDER (Oral)
I.A. 5695/2023 (Under Order XXIII Rule 3 of the CPC)
1. This is one of those providential cases, few and far between, in which, even before summons are issued in the suit, the parties have arrived at an amicable resolution.
2. I.A. 5695/2023 has, therefore, been jointly filed by the parties under Order XXIII Rule 3 of the Code of Civil Procedure, 1908 (CPC), setting out the terms of settlement between the parties, which are reproduced thus:
"(i) The Defendants acknowledge the validity of the suit patent, IN 282092 and the Plaintiffs resultant exclusive rights to deal in a fertilizer composition containing:
a. Elemental Sulphur in the range of 30% to 87% of the total composition; Zinc Oxide (ZnO) in the range of 3% to 25% w/w of the total composition and at least one agrochemically acceptable excipient; wherein the composition is in the form of microgranules of the size 0.1 mm to 0.5mm or broadcast granules of the size range of 0.75mm to 5mm and wherein the composition comprises particles in the size range of 0.1 to 50 microns.
b. Elemental Sulphur in the range of 30% to 85% w/w of the total composition, Zinc Sulphate monohydrate (ZnSO4, H2O) in the range from 8% to 60% w
The main legal point established in the judgment is the court's recognition and enforcement of a settlement agreement under Order XXIII Rule 3 of the CPC.
The court upheld the enforceability of the terms of settlement under Order XXIII Rule 3 of the CPC, leading to the decree of the suit in the terms of settlement.
The court upheld the proprietary right of the plaintiff over the patented agricultural composition and prohibited Defendant 1 from infringing the plaintiff's patent.
Settlement terms enforceable under CP Code, where defendant acknowledges patent validity and agrees to refrain from infringing activities.
The acknowledgment of patent validity and early settlement entitles the plaintiff to a full refund of court fees under CPC Order XXIII Rule 3.
The main legal point established in the judgment is the court's authority to decree a suit based on a settlement agreement under Order XXIII Rule 3 of the Code of Civil Procedure.
Enforcement of settlement terms under Order XXIII Rule 3 of CPC and decreeing of the suit in terms of the settlement
Mutual settlement of disputes allows parties to withdraw claims under Order XXIII Rule 3, leading to court decreeing the suit based on agreed terms.
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