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IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
M/s Globus Spirits Ltd. – Appellant
Versus
Wild Berries Bottling Pvt. Ltd. – Respondent
CS(COMM) 435 of 2022, I.A. 9740 of 2022, I.A. 15363 of 2022 & I.A.
Decided On : 29-03-2023
Settlement Agreement - Trademark Dispute - Code of Civil Procedure, 1908 (CPC) - Order XXIII Rule 3
Fact of the Case:
The parties reached a settlement agreement under Order XXIII Rule 3 of the CPC, resolving a trademark dispute over various marks and claims.
Finding of the Court:
The court decreed the suit in accordance with the terms of the settlement agreement, stating that nothing survives for adjudication in the suit.
Issues: Trademark dispute settlement, withdrawal of suit, refund of court fees, release of seized goods
Ratio Decidendi: The court found that the settlement agreement resolved all claims and issues between the parties, leading to the decree of the suit in accordance with the terms of the settlement.
Final Decision: The suit was decreed in accordance with the terms of the settlement agreement, and the parties were bound by the agreement. The plaintiff was entitled to a refund of court fees, and the defendant was directed to be refunded the amount deposited with the Registry. The seized goods were also directed to be released to the defendant.
ORDER (Oral)
1. This dispute between the parties stands settled and I.A. 5659/2023, as a joint application under Order XXIII Rule 3 of the Code of Civil Procedure, 1908 (CPC), has been filed. The settlement agreement dated 2nd March 2023, executed under the aegis of the Delhi High Court Mediation and Conciliation Centre, is annexed to the application.
2. The terms of settlement read thus:
"1. That the Parties hereby agree that adoption of the mark 'WILD LAKE', 'WILD LACE' and 'WHITE LAKE' by the Second Party was not malafide and any similarity was only coincidental.
2. The Parties hereby settle with respect to all and every claim, relief, liability, loss and/or damage of whatsoever nature against each other, that have been raised or may have been raised, pleaded, disclosed, referred to and/or relied on, in relation to the matters pleaded in the CS Comm No. 435 of 2022, Opposition bearing No. 860585 filed in Trademark Application No. 4960980, Opposition bearing No. 1170337 filed in Trademark Application No. 4979638 and Rectification Petition No. 275469 filed in Trademark Registration No. 502421.
3. It is further agreed that no further dispute shall be raised by Parties with regard to this subject matter.
4. It is agreed that the Second Party is allowed to use and sell its pending stock of 2,61,000 bottle caps and the First Party shall neither directly nor indirectly interfere or disturb such sale.
5. It is agreed that the First Party shall not interfere directly or indirectly, with the sale of Second Party's stock of 365 cases provided the Second Party sells it by changing the old label with its new label.
6. It is further agreed that the First Party shall neither directly nor indirectly interfere/object or disturb the sale of Second Party's goods under its mark 'WILD LAKE' and 'WILD LACE' for the stock lying with the Rajasthan State Ganganagar Sugar Mills Ltd.
7. It is agreed that the First Party hereby specifically give up all claims arising against the Second Party as raised in the present suit etc and shall withdraw all the pending Litigations/Suits/Oppositions/ Rectifications, instituted against the trademarks of Second Party as provided in Clause B of the Settlement Agreement, before the Hon'ble High Court of Delhi and Registrar of Trademarks.
8. It is agreed that the First Party shall not file any opposition to the trademark registration of new mark of the Second Party i.e. 'WILD BERIBS ORANGE VODKA', as filed under Application No. 5551096 and 'WILD BERIES ROSE; WILD BERIES ORANGE; WILD BERIES MINT', as filed under Application No. 5525278 or any other associated mark that the Second Party would file for registration in future.
9. It is agreed that the First Party shall not interfere/object to the usage of the mark 'WILD BERIES' for Second Party's Lime Vodka or any other flavor of Vodka or any other type of liquor.
10. It is agreed that the First Party shall not raise any dispute against Second Party regarding the First Party's bottle design registered under the Design Act, 2000 as 330932-001.
11. It is agreed that the Second Party shall abandon the usage of its mark 'WILD LACE', 'WILD LAKE' and 'WHITE LAKE' and its trademarks under Application no. 4960980, 4979638 and 5028421 respectively, unless in the manner prescribed under the Said Order or agreed upon and mentioned in this Settlement Agreement.
12. It is agreed that the Second Party shall not adopt any new mark that is identical/deceptively similar to the trademarks of First Party.
13. It is agreed that the Second Party shall pay a sum of Rs. 3,00,000/- (Indian Rupees Three Lakhs Only) to the First Party as an adhoc settlement amount for settlement of all the disputes and claims stated and discussed hereinabove between the Parties. The aforesaid amount shall be paid to the First Party by the Second Party by way of a demand draft which shall be tendered to the First Party upon the withdrawal of the suit CS (Comm) 435 of 2022.
14. The Second Party shall be entitled to a refund of
Settlement agreements under Order XXIII Rule 3 of the CPC can lead to the decree of suits and resolution of disputes, binding the parties to the terms of the agreement.
Enforceability of settlement agreement under Order XXIII Rule 3 of the CPC.
Enforceability of settlement agreements and their impact on the resolution of disputes.
The court has the authority to examine and decree a suit based on the terms of settlement between the parties under Order XXIII Rule 3 of the CPC.
The central legal point established in the judgment is the approval and enforcement of a Settlement Agreement to resolve trademark infringement disputes.
The court upheld the settlement agreement and decreed the suit in accordance with the terms of settlement, thereby recognizing the proprietary rights of the plaintiff's trademarks and trade dress.
Settlement agreements can effectively resolve disputes and render legal proceedings unnecessary for adjudication.
The acknowledgment of proprietary rights in the trademark and copyright, and the lawful disposal of seized goods in accordance with environmental regulations.
Settlement of disputes and acknowledgment of terms of settlement by the parties can lead to the court decreeing the suit in favor of the settling party.
Settlement agreements can effectively resolve disputes in trademark infringement cases, allowing parties to acknowledge rights and agree on actions to prevent future violations.
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