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2023 Supreme(Del) 1385

IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
Virender Kumar Gupta M/s Burger King – Appellant
Versus
Burger King Corporation & Anr. – Respondents
C.O. (COMM.IPD-TM) 568 of 2022 and C.O. (COMM.IPD-TM) 571 of 2022
Decided On : 21-04-2023

Advocates appeared:
Mr. Shailen Bhatia, Mr. Amit Jain and Mr. Raghav Bhalla, Advocates, for the Petitioner.
Mr. Raunaq Kamath, Mr.Rahul Bajaj and Mr. Mukul Kochhar, Advocates for R-1.

The jurisdiction to exercise rectification of a mark is subject to the finding of the Civil Court as regards the prima facie tenability of the plea of invalidity, as a statutory safeguard to prevent frivolous and untenable claims of invalidity.

Headnote:

Rectification Petitions - Trademark - The court dismissed the rectification petitions seeking cancellation/removal of registered marks, citing the requirement of prima facie tenability of the plea of invalidity as a statutory safeguard and the jurisdiction to exercise rectification only upon finding of the Civil Court as regards the prima facie tenability of the plea of invalidity.

Fact of the Case:

The petitioner filed rectification petitions seeking cancellation/removal of registered marks held by the respondent. The respondent had previously sought a permanent injunction against the petitioner for trademark infringement and passing off.

Finding of the Court:

The court found that the rectification petitions were not maintainable as they were filed after the suit for infringement, and the plea of invalidity was not prima facie tenable based on previous judgment.

Issues: Validity of rectification petitions, requirement of prima facie tenability of plea of invalidity, maintainability of petitions filed after infringement suit.

Ratio Decidendi: The jurisdiction to exercise rectification of a mark is subject to the finding of the Civil Court as regards the prima facie tenability of the plea of invalidity, as a statutory safeguard to prevent frivolous and untenable claims of invalidity.

Final Decision: The court dismissed the rectification petitions, ruling that they were not maintainable based on the requirement of prima facie tenability of the plea of invalidity and the timing of their filing.

JUDGMENT

Amit Bansal, J. (Oral)

C.O. (COMM.IPD-TM) 568/2022, C.O. (COMM.IPD-TM) 571/2022,

C.O. (COMM.IPD-TM) 578/2022&C.O. (COMM.IPD-TM) 592/2022

1. The present rectification petitions have been filed on behalf of the petitioner seeking cancellation/removal of the following marks registered in the name of the respondent no.1, from the Register of Trade Marks:

i. [IMG] under registration no. 2011497 in class 43

ii. [IMG] under registration no.1494245 in class 42

iii. [IMG] under registration no. 1615231 in class 29

iv. BURGER KING under registration no. 1494246 in class 42

2. The rectification petitions were filed before the IPAB and the same have been transferred to this Court pursuant to the enactment of the Tribunal Reforms Act, 2021. The rectification petitions have been contested on behalf of the respondent no.1 by filing a counter-statement.

3. Earlier, the respondent no.1, Burger King Corporation, had instituted a suit being CS(COMM) 2200/2014 in the year 2014(later renumbered as CS(COMM) 229/2018), inter alia, against the petitioner herein, Mr. Virender Kumar Gupta, who was the defendant no.2 in the suit. In the aforesaid suit, the respondent no.1 had sought a decree of permanent injunction against the petitioner herein and other defendants restraining them from infringing the trademark 'BURGER KING' as well as passing off their goods as that of the respondent no.1.

4. In the aforesaid suit, the petitioner herein had sought to raise an issue with regard to invalidity of the registrations of the trademark 'BURGER KING' of the respondent no.1 herein. Vide judgment dated 6th March, 2023 passed in the said suit, I had held that the plea raised by the defendant in the suit with regard to invalidity of the registrations granted in favour of the plaintiff in respect of its trademark 'BURGER KING' and other formative marks, is prima facie not tenable and therefore, no issue with regard to validity of registrations of the trademarks of the plaintiff is liable to be framed in the suit.

5. Placing reliance on the judgment of the Supreme Court in Patel Field Marshal Agencies v. P.M. Diesels Ltd, (2018) 2 SCC 112,it was observed that the jurisdiction with regard to rectification of a mark under Section 124 Trademarks Act, 1999 can be exercised only upon finding of the Civil Court as regards the prima facie tenability of the plea of invalidity. Relevant paragraphs of the judgment in the aforesaid suit are set out below:

    "12. I am in agreement with the submission of the plaintiff that the finding of prima facie tenability is a statutory safeguard to ensure that the defendants do not file rectification proceedings as a counter blast to the infringement actions against them, unless their plea of invalidity is prima facie tenable. If this were not so, the defendants would be permitted to challenge the registrations of the plaintiff by filing rectification petitions on frivolous and untenable grounds. It is for this reason that the legislature has placed the safeguard of prima facie tenability in cases where the rectification proceedings are filed after a suit for infringement has been filed, whereas no such safeguard is there in cases where rectification proceedings have been filed before the suit.

    13. In Patel Field Marshal (supra), the Supreme Court observed that where a civil suit is pending, the jurisdiction can be exercised by a statutory authority only on account of finding of the Civil Court as regards the prima facie tenability of the plea of invalidity. It was further observed that such a finding is a basic requirement so that false, frivolous and untenable claims of invalidity are not raised."

6. The petitioner has filed an appeal against the aforesaid judgment before the Division Bench of this Court. However, the said appeal was withdrawn by the petitioner on 18th April, 2023 with liberty to file a Special Leave Petition before the Supreme Court.

7. Since the rectification petitions were admittedly filed after filing of the afor

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