IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Dabur India Limited – Appellant
Versus
Vibcare Pharma Pvt. Ltd. & Anr. – Respondents
CS(COMM) 94 of 2023
Decided On : 21-07-2023
Trademark - Settlement Agreement - The court approved a settlement agreement between the parties, wherein the defendants undertook to refrain from using packaging and labels similar to the plaintiff's trademarks, and to amend their product packaging. The suit was decreed in the terms of the settlement agreement, and the plaintiff was entitled to a refund of the court fee.
Fact of the Case:
The disputes between the parties were settled through a Settlement Agreement dated 7 July 2023, under the aegis of the Delhi High Court Mediation and Conciliation Centre.
Finding of the Court:
The court found the terms of the settlement to be in order and decreed the suit accordingly. The plaintiff was entitled to a refund of the court fee, and the miscellaneous application was disposed of.
Issues:
Ratio Decidendi: The court approved the settlement agreement and decreed the suit in its terms, binding the parties to the agreement.
Final Decision: The suit was decreed in the terms of the settlement agreement, and a decree-sheet was to be drawn up accordingly. The plaintiff was entitled to a refund of the court fee, and the miscellaneous application was disposed of.
JUDGMENT (Oral)
C. Hari Shankar, J.
CS(COMM) 94/2023 and I.A. 3415/2023 (Order XXXIX Rules 1 and 2 of the CPC)
1. The disputes between the parties stand settled. Settlement Agreement dated 7 July 2023, drawn up under the aegis of the Delhi High Court Mediation and Conciliation Centre has been placed on record. The terms of settlement contained therein read thus:
"A. That the Plaintiff has claimed itself to the owner of various trade mark registrations in respect of the trademark HONITUS (word) as well as the HONITUS Cough Remedy label/carton/packaging [IMG] and/or [IMG] (as reproduced in paragraph no. 12 of the Plaint). The Plaintiff have further claimed themselves to be owner of the aforementioned trademarks as well as the copyright subsisting therein by virtue of prior adoption and use under the common law. The Defendants herein do not dispute the validity of the registrations acquired by the Plaintiff and undertake that they shall not challenge the same on any ground whatsoever.
B. The Defendants hereby voluntarily undertake before this Hon'ble Court that they shall forthwith refrain from inter alia manufacturing or authorizing the manufacture, selling, offering for sale, marketing, exporting, importing, retailing, supplying, distributing, exhibiting, promoting, labelling, packaging, dealing in and/or using in any manner whatsoever, the impugned trade dress/ packaging/ label/ get-up [IMG] (as reproduced in detail in paragraph no. 35 of the Plaint) or in any other packaging/trade dress, as may be identical, and/or deceptively similar or confusingly similar to the Plaintiffs well-known registered trade dress/ label which includes the outer packaging, label, bottle and complete trade dress [IMG] either as a trade mark or part of a trade mark, or as a label/trade dress or part of a label/trade dress, as a device mark or part of a device mark, or in any other manner whatsoever, in relation to any goods or services, or in relation to any promotional marketing or advertising material or any other material used or intended to be used for labelling or packaging or for promoting any goods or services, as may amount to infringement of the Plaintiffs registered well- known trademarks, and/or passing off of the Defendants' products and business as that of the Plaintiff and/or infringement of the Plaintiff s copyright in such packaging labels.
C. The Defendants have assured that they have already taken steps to delist their products NURACUFF-AYURVEDIC MEDICINE FOR COUGH RELIEF bearing the impugned trade dress/ packaging/ label/ get-up [IMG] from the online/e- commerce portals, and from the physical markets and have destroyed all the impugned trade dress/packaging/label/ get-up, as above.
D. The Defendants have agreed to amend the packaging/trade dress/label for the impugned product with packaging/label/trade dress [IMG] which is also annexed herewith as ANNEXURE-C. The Plaintiff has no objection to the use and/or registration of the said amended packaging/label/trade dress by the Defendants. It is hereby clarified that the Defendants shall be free to use and/or register the mark NURACUFF-AYURVEDIC MEDICINE FOR COUGH RELIEF unless such mark is used in any packaging/label/trade dress as may similar to the Plaintiffs well-known label/carton/packaging [IMG] and/or [IMG]."
2. The parties are represented by learned Counsel who undertake on behalf of their respective clients to remain bound by the terms of settlement.
3. This Court has perused the terms and finds them to be in order.
4. As such, nothing survives for adjudication in the present suit.
The suit stands decreed in the terms of the aforesaid Settlement Agreement dated 7 July 2023, by which the parties shall remain bound.
5. Let a decree-sheet be drawn up accordingly.
6. The plaintiff shall be entitled to refund of the court fee, if any, deposited by it as the settlement has taken place consequent to mediation proceedings.
7. Miscellaneous application does not survive for
The court's approval of the settlement agreement and the subsequent decree based on the terms of the agreement.
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.
Settlement agreements reached through mediation can be decreed by the court, and parties are bound by the terms of the agreement, with defaulting parties being held liable for contempt of court.
The acknowledgment of proprietary rights in the trademark and copyright, and the lawful disposal of seized goods in accordance with environmental regulations.
Enforcement of Settlement Agreement
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 be used to resolve disputes without delving into the merits of the case, and the court may decree the suit in terms of the settlement agreement.
Settlement agreements under Order XXIII Rule 3 CPC can lead to the decreeing of a suit in accordance with the terms of the settlement, effectively resolving the disputes between the parties.
The central legal point established in the judgment is the lawfulness of the Settlement Agreement and the parties' undertaking to remain bound by its terms.
Settlement agreements can resolve disputes and lead to the decree of a suit in terms of the settlement.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.