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2023 Supreme(Del) 1588
IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
The Scotch Whisky Association – Appellant
Versus
Whiskin Spirits Pvt. Ltd. – Respondent
CS(COMM) 380 of 2023 & I.A.10909 of 2023, I.A.10910 of 2023, I.A.10911 of 2023, I.A.11175 of 2023
Decided On : 01-06-2023
Mr. Jithin M. George, Advocate, for the Plaintiff.
Mr. Kapil Wadhwa, Ms. Surya Rajappan, Ms. Tejasvini Puri and Ms. Vasanthi Hariharan, Advocates, for the Defendant.
Enforceability of settlement terms under Order XXIII Rule 3 of the CPC.
Headnote:
Scotch Whisky - Settlement Agreement - Order XXIII Rule 3 of the CPC - No. 4426635 in class 33
Fact of the Case:
The matter was settled between the parties before the issuance of summons, and a joint application was filed under Order XXIII Rule 3 of the CPC for passing a decree in terms of the settlement agreement.
Finding of the Court:
The terms of settlement were found to be legal, enforceable, and in order, leading to the suit being decreed in terms of the settlement agreement. The plaintiff was entitled to a complete refund of court fees.
Issues: Settlement of the dispute, enforceability of the settlement terms, and refund of court fees.
Ratio Decidendi: The court found the settlement terms to be legally binding and decreed the suit accordingly.
Final Decision: The suit was decreed in terms of the settlement agreement, and the plaintiff was entitled to a complete refund of court fees.
ORDER (Oral)
I.A.11175/2023 (under Order XXIII Rule 3 of the CPC)
1. This matter has, happily, been settled between the parties even before summons have been issued in the suit and IA 11175/2023 has been filed as a joint application under Order XXIII Rule 3 of the CPC for passing of a decree in terms of the settlement agreement.
2. The plaint is accordingly registered as a suit. Learned Counsel for the parties are present on behalf of their respective clients. The terms of settlement between the parties read thus:
"a) The Defendant recognizes and acknowledges that "Scotch Whisky" is whisky wholly produced in Scotland in accordance with United Kingdom legislation and is a geographical indication registered in India.
b) The Defendant further recognizes and acknowledges that descriptions such as `Blended with Scotch', `Scotch Blended Whisky', etc., in relation to alcoholic beverages produced in India, could mislead consumers into believing that such beverages are "Scotch Whisky', rather than products of India which contain some Scotch Whisky as an ingredient.
c) The Defendant recognizes and acknowledges that words such as `GLEN', `LONDON', etc. are evocative of Scotland or the United Kingdom and, if such terms are used in relation to whisky, they could mislead consumers into believing that the whisky is a Scotch Whisky when it is not.
d) The Defendant agrees and undertakes before this Hon'ble Court that it will not manufacture, bottle, sell, offer for sale, market, advertise, supply, distribute, import, export, stock and/or deal in, directly or indirectly, in any way whatsoever, in India or abroad, any whisky which is not Scotch Whisky by using the expressions or descriptions, including but not limited to, Blended with Scotch, Scotch Blended Whisky, Single Malts from different Scotland's Whisky regions, Blended with rare imported Scotch Malts, or any other reference, statement, expression or description which only refers to the Scotch Whisky component without mentioning the other constituents of the whisky or which is otherwise indicative, suggestive or evocative of Scotland or the United Kingdom or which in any manner misleads the consumer into believing or creates a false impression that the whisky is a Scotch Whisky or which otherwise alludes or suggests a nexus or association with Scotch Whisky or Scotland or United Kingdom or from committing or doing any other act so as to infringe the Plaintiff's registered GI, "Scotch Whisky";
e) The Defendant agrees and undertakes before this Hon'ble Court that it will forthwith take necessary steps to delete all misleading descriptions appearing on the bottle labels, packaging and carton of its Whiskin Craft whisky or to amend the same in accordance with paragraph 3(h) below. Towards this, the Defendant undertakes and agrees to delete or amend, inter-alia, the following descriptions:
i. "Whiskin Craft Whisky Blended with Scotch".
ii. "Whiskin Craft Whisky Blended With Scotch and rich Malt is velvety smooth with the powerful waves of breaking flavours of toasted Dry Fruits, Honey and Dark Chocolate which are relived till the End, Whiskin Craft gives way to a long, lingering and smooth finish that delivers a perfect balanced Character of Scotch Blended Whisky. Enjoy Responsibly.
iii. "Whiskin Craft Superior Gold Reserve Grain Whisky Blended with Scotch and rich Malt is velvety smooth with the powerful waves of breaking flavours of toasted Dry Fruits, Honey and Dark Chocolate which are relived till the End Whiskin Craft gives way to a long, lingering and smooth finish that delivers a perfect Character of Scotch Blended Whisky. Enjoy Responsibly".
f) The Defendant agrees and undertakes before this Hon'ble Court that it will forthwith take steps to amend the carton and packaging of its Whiskin Craft whisky to include the word "AWARDS" in reasonable prominence above or as part of the logo [IMG].
g) The Defendant agrees and undertakes before this Hon'ble Court that no later than August 15, 2023, it wi
