Settlement of disputes under Order XXIII Rule 3 of the CPC and the court's authority to decree suits based on lawful settlement terms.

ORDER (Oral)

I.A. 12910/2023 (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.

2. The terms of settlement reads thus:

"i. The Defendant herein acknowledges and recognizes the exclusive statutory and common law rights of the Plaintiffs in the following trademarks (hereinafter referred to as the 'VOLVO' trademarks), in India as are directly relevant to the present proceedings, including all other trademark registrations comprising of the 'VOLVO' word, device and logo marks, not specifically mentioned herein which the Defendant does not and shall not contest:

ii. The Defendant hereby acknowledges and recognizes that the Plaintiffs' trademark 'VOLVO' is a well-known trademark as defined under the provisions of section 2 (1) (zg) of the Trade Marks Act, 1999.

iii. The Defendant agrees to a decree of permanent injunction in terms of prayer clause 75 (i) of the Plaint, that it will not by itself or through its subsidiaries, affiliates, franchisees, proprietors, officers, servants, agents, distributors, stockists, representatives, and anyone acting for or on its behalf, use the name/mark 'VOLVOSTAR'/[IMG] and/or any other name/mark, identical or deceptively similar thereto to the Plaintiffs' name/registered and well-known mark 'VOLVO' in relation to their business activities of manufacturing, marketing, supplying and repackaging of turbo engine oil products or as regards any other goods or services, in any manner, including on products and product packaging; in email ids; in domain names; on social media posts; in third party listings and/or as regards any online and offline representation amounting to:

a) Infringement of Plaintiff No.2's registered trademarks bearing registration numbers 763291, 1384891, 3249588, 1404133;

b) Passing off the Defendant's products and services as those of the Plaintiffs;

c) Dilution and tarnishment of the Plaintiffs' registered and well-known trademark 'VOLVO';

d) Unfair competition vis-a-vis. Plaintiffs' business under its registered and well-known trademark 'VOLVO'.

iv. The Defendant agrees to a decree in terms of prayer clause 75 (ii) of the Plaint and undertakes to destroy all the finished and unfinished materials, including all product containers, packaging, brochures, promotional material, labels, stickers, cartons, dyes, articles, locks, signage, business cards, stationary material, accessories, and any other material bearing the name/mark 'VOLVOSTAR'/[IMG] and/or any other name/mark, identical or deceptively similar thereto to the Plaintiffs' name/registered and well-known mark 'VOLVO' at their own cost within seven (7) days of the execution present Settlement Agreement.

v. The Defendant agrees to a decree in terms of prayer clause 75 (iv) of the Plaint and undertakes to withdraw its Trademark, Application bearing no. 5088418 for the name/mark "VOLVOSTAR' in Class 4 (lubricants oil, industrial oil, and industrial grease) as is filed before the Trademark Registry. The Defendant shall write a letter withdrawal letter to the Trademark Registry and furnish proof of the same to the counsel of the Plaintiffs within seven (7) days of the present execution present Settlement Agreemen