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IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Puma Se – Appellant
Versus
Ashok Kumar Trading As Exposure Style – Respondent
CS(COMM) 610 of 2022 & I.A. 14277 of 2022, I.A. 14278 of 2022, I.A. 3194 of 2023
Decided On : 25-04-2023
SETTLEMENT AGREEMENT - Trademark Dispute - The court found the settlement agreement between the parties to be in order and decreed the suit accordingly, as nothing survived for adjudication.
Fact of the Case:
The dispute between the parties was settled with the intervention of the Delhi High Court Mediation and Conciliation Centre. The settlement agreement dated 5th April 2023 was placed on record.
Finding of the Court:
The court found the terms of settlement to be in order and decreed the suit accordingly, as nothing survived for adjudication.
Issues: The main issue was the settlement of the dispute between the parties and the terms of the settlement agreement.
Ratio Decidendi: The court's decision was influenced by the settlement agreement and the agreement of the parties to abide by its terms.
Final Decision: The suit was decreed in terms of the settlement agreement dated 5th April 2023, and the plaintiff was entitled to a refund of court fees if any.
ORDER (Oral)
1. The dispute between the parties stands settled with the intervention of the Delhi High Court Mediation and Conciliation Centre. The settlement agreement dated 5th April 2023 has been placed on record..The terms of settlement read thus:
"1. That the Second Party hereby recognizes and acknowledges the First Party's exclusive proprietary rights in the trademark PUMA, [IMG] and all of its formative trademarks and agrees not to challenge First Party's statutory and proprietary rights directly or indirectly at any time in future in India and globally.
2. The Second Party confirms and undertakes that he has stopped stocking, wholesaling, supplying, selling, marketing, in any manner including online sale of garments, shoes or any other products under the mark PUMA and logo [IMG].
3. The Second Party agrees to forthwith Cease and desist from trading, stocking, wholesaling, supplying, selling, and marketing of products bearing the mark PUMA and [IMG] logo in any manner including physical or online sale or through e-commerce portals. The Second Party agrees not to adopt at any time m future or use any mark deceptively similar to PUMA or containing PUMA in any manner for any products including garments, shoes or any other products. Any violation of this undertaking making the Second Party liable for exemplary damages and cost of Rs.5,00,000/- (Rupees Five Lakhs Only).
The Second Party undertakes that the goods seized by the Local Commissioner will be handed over to the authorized representative of the First Party for destruction. The Second Party does not have any stock of the infringing products apart from the products seized by the Local Commissioner.
5. The Second Party confirms that he has not applied for registration for the mark PUMA and [IMG] logo as a trademark or any other mark identical/deceptively similar to the First Party's trademark PUMA and shall not to do so in future.
6. That the Second Party has agreed to pay a consolidated sum of Rs.2,00,000 (Two Lakhs Only) towards cost to the First Party by way of three cheques in the name of the First Party's law firm RNA IP ATTORNEYS in three installments. Details of same are as under:
(i) Cheque bearing number 485988 dated 15.04.2023 drawn on State Bank of India, Hari Nagar Branch for an amount of Rs.50,000/-.
(ii) Cheque bearing number 485989 dated 15.05.2023 drawn on State Bank of India, Hari Nagar Branch for an amount of Rs.75,000/-.
(iii) Cheque bearing number 485990 dated 15.06.2023 drawn on State Bank of India, Hari Nagar Branch for an amount of Rs.75,000/-.
Original cheques handed over to the counsel for the Plaintiff and the copy of the same are annexed herewith as ANNEXURE-C (COLLY).
7. That in view of the aforesaid undertaking given by the Second Party, the First Party agrees to forego its claim of damages against the Second Party including account/damages/punitive damages as stated in paragraph no. 37 (d) of the plaintiff and the parties agree that in view of the above undertakings and acknowledgments, a decree may be passed in terms of the mediation Settlement Agreement.
8. The Parties agree that they shall abide by the terms and conditions set out in the present Settlement Agreement and shall not dispute the same hereinafter m future. The Parties further agree that the statements made by them herein in "this Settlement Agreement shall be taken as their respective undertakings to the Hon'bie Court and the defaulting party shall be held liable for contempt of court under the Contempt of Courts Act, 1971.
9. The parties agree that they have executed the present settlement agreement by their free will and volition without any force or pressure from anybody. The parties also agree that they have understood the contents of the present Settlement Agreement as the same have been explained to them by the Mediator and their respective counsel, in the presence of each other and they have consented to the same in its true letter and spirit, and as such they shall not d
The court's decision was based on the validity and acceptance of the settlement agreement by the parties involved.
Enforceability of settlement agreements and their impact on the resolution of disputes.
Enforceability of settlement agreements in resolving disputes.
The central legal point established in the judgment is the approval and enforcement of a Settlement Agreement to resolve trademark infringement disputes.
Enforcement of Settlement Agreement
The court upheld the legality and regularity of the settlement agreement, leading to the decree in terms of the agreement.
The acknowledgment of proprietary rights in the trademark and copyright, and the lawful disposal of seized goods in accordance with environmental regulations.
Settlement agreements can effectively resolve disputes and render legal proceedings unnecessary for adjudication.
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