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IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Padmavati Agro Industries – Appellant
Versus
Aviraj Agro Commodities Pvt. Ltd. & Ors. – Respondents
CS(COMM) 829 of 2022, I.A. 20165 of 2022 & I.A. 3610 of 2023
Decided On : 11-05-2023
Trademark Dispute - Settlement Agreement - Trade Marks Act, 1999 - Copyright Act - [Trade Marks Act, 1999, Copyright Act] - The court found the settlement agreement between the parties to be in order and lawful, leading to the decree of the suit in the terms of the settlement. The defendants were permitted to retrieve rice from the seized packages, subject to their destroying the packages themselves, and dispose of the rice in accordance with the law and environmental regulations.
Fact of the Case:
The dispute between the parties was settled through a mediation and a settlement agreement was reached, acknowledging the plaintiff's proprietary rights in the trademark and copyright in the artistic features of the packaging pouches.
Finding of the Court:
The court found the terms of settlement to be in order and lawful, leading to the decree of the suit in the terms of the settlement. The defendants were permitted to retrieve rice from the seized packages, subject to their destroying the packages themselves, and dispose of the rice in accordance with the law and environmental regulations.
Issues: Settlement of dispute, ownership of trademark and copyright, retrieval and disposal of seized rice.
Ratio Decidendi: The settlement agreement and the acknowledgment of the plaintiff's proprietary rights in the trademark and copyright influenced the court's decision to decree the suit in the terms of the settlement. The court also allowed the defendants to retrieve rice from the seized packages, subject to their destroying the packages themselves, and dispose of the rice in accordance with the law and environmental regulations.
Final Decision: The suit was decreed in the terms of the settlement agreement. The defendants were permitted to retrieve rice from the seized packages, subject to their destroying the packages themselves, and dispose of the rice in accordance with the law and environmental regulations.
Order (Oral)
1. The dispute between the parties stand settled with the intervention of the Delhi High Court Mediation and Conciliation Centre.
2. A Settlement agreement dated 9th May 2023 has been placed on record. The terms of settlement read thus:
"a) The second, third and Fourth party admit that the First Party is original and registered proprietor of the trademark/label SAWARIYA in respect of the goods falling in class 30 of the Trade Marks Act, 1999 and the 1 to 3 defendants acknowledge the proprietary right of the FIRST PARTY in the said trademarks.
b) The Second Party, Third Party and Fourth Party also admit and acknowledge the FIRST PARTY Copyright in the artistic features of the packaging pouches, labels including their distinctive scripts, fonts, positions and placing of features, their respective get ups, lay outs, combination of colours and arrangements of general and descriptive materials in respect of goods falling in class 30.
c) The Second Party, Third Party and Fourth Party also admit and acknowledge that the First Party is prior user of the trademark/label SAWARIYA for the goods falling in class 30.
d) The Second Party, Third Party and Fourth Party further admit the FIRST PARTY to be the owner of Copyright in the artistic works as involved in the trademark/label SAWARIYA and the defendants shall not have any objection with respect to the registration of the pending trademark and copyright applications with regard to the trademark/artistic work SAWARIYA of the plaintiff in any manner whatsoever.
e) The Second Party, Third Party and Fourth Party assure and undertake not to commit any act of infringement and/or passing off by the use of the trade mark SAWARIYA/MIRASAWARIYA and/or any other mark which is identical and/or deceptively similar to the plaintiffs registered trademark in relation to the goods i.e. Rice etc. falling in class 30.
f) The Second Party, Third Party and Fourth Party further assure and undertake that they will not to use the scripts, fonts, positions and placement of any features, get ups, lay outs, combination of colours and arrangement as are or is identical or deceptively similar to the features, get ups, lay-outs, positions and placement or combination of colours of the FIRST PARTY pouches/packaging material in respect of and in relation to the product Rice etc.
g) The Second Party, Third Party and Fourth Party further state that there is no application pending before the Registrar of Trade Marks or any other authority filed by The Second Party, Third Party and Fourth Party bearing the trademark/label "MIRASAWARIYA OR SAWARIYA" or any other deceptively similar trademark/label as that of the FIRST PARTY and even in future also The Second Party, Third Party and Fourth Party shall not file any such application for the registration which may be similar or identical to the trademark/label/artistic work/trade dress of the FIRST PARTY.
h) The Second Party, Third Party and Fourth Party undertake to recall all the marketing, promotional and advertising materials, if there are any that bear or incorporate the mark "MIRASAWARIYA" or any other mark similar to the FIRST PARTY'S "SAWARIYA" mark, which have been distributed, sold or shipped before entering into the present settlement;
i) The Second Party, Third Party and Fourth Party specifically assure and undertake that they will destroy all the blocks, dies, screens, works, wrappers and any other material in which the impugned mark or infringing trade dress or copyright within fifteen days from the date of acceptance of this Settlement by the Hon'ble High Court and an order to that effect is passed by the Hon'ble High Court.
j) The Second Party, Third Party and Fourth Party further assure and undertake that they will not either directly or indirectly, or through any of its entity apply or encourage others directly or indirectly for the registration of any trade mark "'MIRASAWARIYA"' or any word/mark deceptively similar to the trademark 'SAWARIYA' of the FI
The acknowledgment of proprietary rights in the trademark and copyright, and the lawful disposal of seized goods in accordance with environmental regulations.
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 and render legal proceedings unnecessary for adjudication.
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 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....
Settlement agreements can resolve disputes and lead to the decree of a suit in terms of the settlement.
Enforcement of Settlement Agreement
The court's decision was based on the validity and acceptance of the settlement agreement by the parties involved.
The court upheld the legality and regularity of the settlement agreement, leading to the decree in terms of the agreement.
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.
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