IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Sirona Hygiene Private Limited – Appellant
Versus
Parulben Navnath Chothani Trading As Shiv Enterprise & Ors. – Respondents
CS(COMM) 260 of 2022 & I.A. 7267 of 2023
Decided On : 24-04-2023
Trademark Infringement - Settlement Agreement - The court found the settlement terms to be lawful and binding, and decreed the suit in terms of the settlement agreement.
Fact of the Case:
The plaintiff and Defendant 11 entered into a settlement agreement, acknowledging the plaintiff's ownership of trademarks and copyrights, and agreeing to refrain from using or challenging the plaintiff's rights.
Finding of the Court:
The court found the settlement terms to be lawful and binding, and decreed the suit in terms of the settlement agreement, with no further issues to be considered between the parties.
Issues: Settlement of dispute, ownership of trademarks and copyrights, infringement of intellectual property rights.
Ratio Decidendi: The settlement agreement between the parties was found to be lawful and binding, leading to the decree of the suit in terms of the settlement agreement.
Final Decision: The suit stands decreed in terms of the settlement agreement, and the parties are bound by the terms of the settlement.
JUDGMENT (Oral)
I.A. 7267/2023(Under Order XXIII Rule 3 of the CPC)
1. This is a joint application by the plaintiff and Defendant 11, as the dispute between them stands settled. The court has perused the terms of settlement and find them to be lawful. The terms of settlement are thus set out in the application.
"2. The Plaintiff and the Defendant No. 11 have now entered into a settlement which is the subject matter of the above suit on the following terms & conditions:
i. That the Defendant no. 11 acknowledge the Plaintiff to be the owner of the following registered Trademark:
| Trade Mark | TM No. | User detail | Class |
| [IMG] | 4337628 | 04.11.2019 | 10 |
| PAD FREE PERIODS | 5065354 | 24.08.2017 | 10 |
| #padfreeperiods | 5070466 | 24.08.2017 | 10 |
| SIRONA | 3683557 | 21.11.2017 | 03 |
| [IMG] | 4576447 | 20.07.2020 | 03 |
ii. That the Defendant No.11 acknowledges the Plaintiff to be the owner of the Copyright in the following product packaging ("SIRONA MENSTRUAL CUP"):
[IMG]
(hereinafter collectively referred to as Plaintiff's trademarks & Copyright")
iii. That the Defendant No. 11 undertakes that it will not directly or indirectly use the Plaintiff's Trade marks & Copyright in any manner whatsoever or any other deceptively similar trademark including but not limited to SIROMA, SIROMAA and SIMORA; directly or indirectly, offer to sell, offer for sale, or market or advertise, by itself, its agents, licensees, affiliates, distributors, associates, including through any internet based e-commerce platform or any third party, including the ones hosted by Snapdeal Ltd., Fashnear Technologies Pvt. Ltd., Amazon Seller Services Private Limited and (Defendants No. 2, 3 and 4 respectively), any product that might infringe the intellectual property rights of the Plaintiff's SIRONA Trademark & Copyright.
iv. That the Defendant No. 11 will not use Plaintiff's Trade Marks and Copyrights on any products, board, hoarding, invoices, pamphlet, promotional, marketing or promotional materials.
v. That the Defendant No. 11 undertakes that it will not challenge those rights of the Plaintiff in its Trade Marks & Copyright in any manner whatsoever.
vi. The Defendant No. 11 undertakes not to manufacture/produce/sell/offer to sell directly or indirectly any infringing products including the product forming the subject matter of this suit before the Hon'ble Court. With regard to the products manufactured and/or in stock with the Defendant No. 11 prior to institution of the suit, the Defendant No. 11 undertakes to destroy all products that are violating Plaintiff's Trade Mark & Copyright that are already manufactured and in stock with the Defendant no. 11.
vii. That the Defendant No. 11 undertakes not to file any application for registration of a Trademark which is identical/deceptively similar to the Plaintiff's Trademarks & Copyrights.
viii. That the Defendant No. 11 has paid sum of Rs.20,000/- to the Plaintiff as damages vide Demand draft having number 722399.
ix. The Parties agree that the signatories to the present settlement are fully competent and authorized to enter into the present Application.
ix The Parties agree that all the terms and conditions laid out in the present Application are fair and reasonable and have been entered into after full appreciation of its various clauses and implications.
x. The Defendant No. 11 hereby agrees before this Hon'ble Court that the present terms and compromise shall be binding on all their principal officers, directors, agents, servants, successors, and assigns in business interest and title and all other acting for and on their behalf, for all times to come.
xi. The Parties agree that all their disputes have been resolved by virtue of this Application and the Plaintiff would not institute or press whatsoever further remedies available to it for Infringement of Plaintiff's Trade Marks & Copyrights with respect to this subject matter."
2. Learned Counsel for the parties are present. They undertake on behalf of their respective clients to remain bound by the terms of settlement. The Court has pe
The court upheld the legality and binding nature of the settlement agreement in resolving the dispute between the parties.
Settlement agreements can resolve disputes and lead to the decree of a suit in terms of the settlement.
The court upheld the settlement reached under Order XXIII Rule 3 of the CPC, recognizing the plaintiff's rights and binding the parties to the agreed terms.
The court upheld settlement agreements acknowledging the plaintiff's exclusive rights to the trademark, prohibiting the defendants from using similar marks, and reaffirming the binding nature of such....
The court's approval of the settlement agreement and the subsequent decree based on the terms of the agreement.
Settlement agreements can effectively resolve disputes in trademark infringement cases, allowing parties to acknowledge rights and agree on actions to prevent future violations.
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 main legal point established in the judgment is the binding nature of a settlement agreement reached between parties, which can lead to the court decreeing the suit in terms of the settlement and....
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 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.
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