Settlement agreements can resolve disputes and lead to the decree of a suit in terms of the settlement.

JUDGMENT (Oral)

CS(COMM) 262/2023 and IA 10791/2023 (Order XXIII Rule 3 of the CPC)

1. The disputes between the parties stand settled and a joint application under Order XXIII Rule 3 of the Code of Civil Procedure, 1908 (CPC) has been filed for decreeing the suit in terms of the settlement arrived at among the parties.

2. The terms of settlement read as under:

"6.1 The Defendant Nos. 1 & 2 admit the Plaintiff to be the owner of the trademark(s) HALDIRAM'S, HALDIRAM BHUJIAWALA, [IMG] and/or [IMG] for the entire territory of India and abroad except the State of West Bengal inter alia in respect of all kind food item, packed foods, Namkeens, Sweets and/or restaurant services under the common law as well as under the provisions of Trade Marks Act 1999 by virtue of various registrations including the registrations under no. 285062 in class 30 and various other registrations in various classes detailed in the Plaint.

6.2 The Defendant Nos. 1 & 2 further acknowledge the Plaintiff to be the owner of Copyright under the provisions of the Copyright Act 1957 in respect of the original artistic work pertaining to [IMG] and/or [IMG] and numerous packaging label(s) under the marks [IMG] and/or [IMG] bearing distinctive get-up, layout, colour combination and arrangements.

6.3 The Defendant Nos.1 & 2 further undertake that they shall not directly or indirectly in any manner at any time in future manufacture & sell goods under the trade mark(s) HALDIRAM'S, HALDIRAM BHUJIAWALA, [IMG] and/or [IMG] and/or [IMG] and/or any other mark as may be identical and/or deceptively similar to the mark in respect of any food related goods or articles or do any such act which may constitute infringement of trademarks, copyrights and/or passing off.

6.4 The Defendant Nos. 1 & 2 further undertake that they shall not directly or indirectly in any manner at any time in represent themselves as being connected with the Plaintiff by using HALDIRAM'S, HALDIRAM BHUJIAWALA, [IMG] and/or [IMG] and/or any other mark as may be identical and/or deceptively similar to the mark in respect of any food related services or email ids or food delivery services etc. or use such mark in relation to their packing material, napkins, polypacks, hand bags, etc. or use the same in any manner whatsoever, as may amount to the tort of passing off. They further agree that the staff at their restaurants shall not hereinafter wear any T-shirts/caps etc with the impression of the marks of the Plaintiff.

6.5 The Defendant No. 2 herein further admits that the Franchise Agreement 14.10.2011 executed in his favour by Defendant No.3 has expired by efflux of time on 13.10.2020 and is not valid anymore.

6.6 The Defendant No.1 & 2 further agree and undertake that in case they become the distributors and/or Super stockiest of the Defendant No.3 to distribute his pre packed goods bearing the marks [IMG] and/or [IMG] at any time in future, they shall strictly do so in compliance with Settlement Agreement dated 03.05.2016 executed between the Plaintiff and Defendant No.3, copy whereof is available with them and terms whereof have been clearly understood by them. The Defendant No.1 & 2 have clearly understood that Defendant No.3, does not have any right for granting any franchise directly or indirectly for allowing any third party to run any restaurant in the territory of the Plaintiff under the marks [IMG] and/or [IMG] and they shall always abide by the same.

6.7 That the Defendant Nos. 1 & 2 hereby further agree and undertake that in case they are found indulging in any act of infringement or passing off with respect to the Plaintiff's rights acknowledged hereinabove and in case they are found to be conducting their business in any manner as may be in contravention of the terms of the present Settlement or even the Settlement Agreement dated 3.5.2016, they shall be liable to pay liquidated damages to the tune of Rs.2,00,00,000/- (Rs. Two Crores) to the plaintiff in addition to other legal remedie