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2023 Supreme(Del) 4471

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Astrazeneca Ab & Anr. – Appellants
Versus
Westcoast Pharmaceutical Works Limited – Respondent
CS(COMM) 101 of 2022
Decided On : 15-05-2023

Advocates appeared:
Mr. Pravin Anand, Ms. Vaishali Mittal and Mr. Siddhant Chamola, Advocates, for the Plaintiff.
Mr. Vikash Khera and Mr.Ved Prakash, Advocates, for the Defendant.

Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rule 11 - Application to reject suit for want of pecuniary and territorial jurisdiction - Court found that the suit is not a quia timet action as the defendant commenced sale of allegedly infringing products - Allegations made in the plaint must be accepted as correct at this stage. (Paras 5-6)

(B) Patents Act, 1970 - Section 25(2) - Right of the patentee to sue for infringement crystallises only after the final disposal of any post-grant opposition - Court clarifies that while a right must exist to institute an infringement suit, it is not suspended by the pendency of post-grant oppositions. (Paras 28, 61)

Facts of the case:
The defendant alleged the suit was improperly filed due to jurisdiction issues and sought to dismiss it based on claims of damages and the present suit's status as quia timet. (Paras 4, 7)

Findings of Court:
The suit was found maintainable, as the defendant had allegedly already initiated activities infringing on the plaintiff's patent, and the court declared jurisdictional challenges at this stage were without merit. (Paras 6, 10)

Issues: Whether the suit was maintainable based on jurisdictional claims and the implications of a post-grant opposition on the patentee's right to sue. (Paras 8, 14)

Ratio Decidendi: The patentee can defend against infringement upon grant of the patent; the existence of overlapping legal proceedings does not impede the right to enforce rights against infringement. (Paras 30, 60)

Result: Application for rejection of the suit under Order VII Rule 11 dismissed.

Table of Content
1. application for rejection of plaint under order vii rule 11. (Para 1 , 2)
2. claim for damages tied to pecuniary jurisdiction. (Para 3 , 4)
3. objection to territorial jurisdiction as per cpc. (Para 6 , 8 , 11)
4. pending opposition does not bar infringement suits. (Para 12 , 14 , 16 , 19)
5. rights of patentees to sue post-grant without delay. (Para 20 , 26 , 28)
6. no grounds for suit rejection found. (Para 68 , 69)

JUDGMENT

C. Hari Shankar, J.

I.A.21995/2022 (under Order VII Rule 11 of the CPC)

1. This is an application preferred by the defendant Westcoast Pharmaceutical Works Limited under Order VII Rule 11 of the Code of Civil Procedure, 1908 (CPC), seeking rejection of CS (COMM) 101/2022, instituted by the plaintiff Astrazeneca AB.

2. I have heard Mr. Vikas Khera, learned Counsel for the defendant-applicant and Mr. Pravin Anand, learned Counsel for the plaintiff-non applicant, at length.

3. Mr. Khera predicates his case, in this application, on three grounds.

(I) Want of pecuniary jurisdiction

4. Mr Khera first contends that the suit is bad for want of pecuniary jurisdiction, as it is required to be filed before the District Court. Mr. Khera submits that the suit is in the nature of a quia timet action, premised on a mere apprehension that the defendant would launch the allegedly infringing product in the market. Relying on the judgment of a Coordinate Single Bench of this Court in Toni & Guy Products Ltd. v. Shyam Sunder Nagpal, 2007 (2014) DLT 309, Mr. Khera submits that a claim for damages is not maintainable in a quia timet suit, founded on mere apprehension. Inasmuch as, in the present plaint, the invocation of the jurisdiction of this Court has been sought to be justified, by the plaintiff, solely on the basis of the damages of Rs. 2,00,01,000/- claimed in the suit Mr. Khera submits that, as no damages can be sought in a suit such as the present, the suit would have to be filed before the District Court as, if the claim for damages is excluded, the suit would stand valued only at Rs. 1,000/-.

5. The objection is without substance. Toni & Guy (supra), in para 11, clearly notes that, in that case, 'admittedly the defendant has not used the mark and has not invaded the proprietary rights of the plaintiffs in the trademark by either infringing the same or passing off'. As against this, in the present case, there is a specific allegation that the defendant has started manufacture and is already selling, or in the process of commencing sale, of the infringing products in the market. No more need be averred, and no more need be seen. Order VII Rule 11 is premised on the assertions in the plaint, to be taken on demurrer as correct. Viewed thus, the present case cannot be likened to Toni & Guy (supra). The analogy is obviously misguided.

6. No case for rejecting the present suit under Order VII Rule 11 for want of pecuniary jurisdiction, therefore, exists.

(II) Want of territorial jurisdiction

7. Mr. Khera next alleges that the suit is bad for want of territorial jurisdiction, as the defendant is located outside Delhi and Plaintiff 1 is in Sweden. Though Plaintiff 1 has a subordinate office, Plaintiff 2, in Delhi, Mr. Khera has predicated his challenge solely on Section 20 of the CPC.

8. In the first place, a defendant cannot seek dismissal, or rejection, of a suit on the ground of want of territorial jurisdiction. Order VII Rule 10 would apply in such a case; nor Order VII Rule 11, and the Court could only be asked to return the suit for presentation before the proper forum.

9. I may note, here, that Mr. Khera, too, did not advance any arguments on the aspect of territorial jurisdiction, as a result of which there was no response from Mr. Anand, either, on that score.

10. The prayer in the application is for rejection of the plaint. Such a prayer cannot be sought on the ground of want of territorial jurisdiction, as want of territorial jurisdiction stands specifically covered by Order VII Rule 10. I do

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