IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Dfm Foods Limited – Appellant
Versus
Mahesh Namkeen Private Limited – Respondent
CS(COMM) 499 of 2021, I.A. 13244 of 2021 & I.A. 15840 of 2023
Decided On : 22-08-2023
Settlement - Trademark Dispute - The court decreed the suit in terms of the settlement reached between the parties, acknowledging the proprietary rights of the plaintiff's trademarks and trade dress, and ordering the defendant to discontinue the use of the impugned trademarks and destroy existing stock of goods bearing the infringing marks.
Fact of the Case:
The dispute between the parties was settled through a joint application, and the court decreed the suit in terms of the settlement.
Finding of the Court:
The court found the terms of settlement to be lawful and in order, and nothing further survived for adjudication in the suit.
Issues:
Ratio Decidendi: The court analyzed the terms of settlement and the representations made by the parties' learned Counsel, and decreed the suit accordingly.
Final Decision: The suit was decreed in terms of the settlement reached between the parties, and a decree sheet was ordered to be drawn up accordingly. The plaintiff would be entitled to a refund of the court fees, if any, deposited by it.
ORDER (Oral)
I.A. 15840/2023 (under Order XXIII Rule 3 of the CPC)
1. The dispute between the parties stands settled and a joint application has been filed to dispose of the suit in terms of the settlement.
2. The terms of settlement read thus:
"a. The Defendant/Respondent acknowledge the proprietary rights of the Plaintiff's/Applicant's trade marks CURLS, and CRAX CURLS under numbers 3164035 and 3667345 and Plaintiffs/Applicant's CURLS and/or CRAX CURLS trade dress/artwork/getup/label under number A-131999/2019 of Plaintiffs/Applicant's copyright therein with respect to corn-based snacks and/or any packaged snack foods in any manner whatsoever.
b. The Defendant/Respondent has voluntarily agreed to discontinue the use of the impugned trade mark CURLY and/or MAHESH CURLY and/or any other mark which is deceptively similar to the mark of the Plaintiff with respect to corn based snacks and/or any packaged snack foods.
d. Defendant/Respondent agrees that any existing stock of goods/packaging, laminates containing bearing the mark/trade dress/artwork/getup/label under CURLY and MAHESH CURLY shall be duly destroyed in presence of the Plaintiff's representative within 7 days from the date of signing the present application, for which Defendant/Respondent shall not be entitled for any cost.
e. That the Defendant/Respondent is willing to suffer decree of perpetual injunction in terms of paragraph 35 (a) to (d) for infringement and/or passing off of the said trade marks and copyrights of the Plaintiff/Applicant and for violation of Plaintiff's/Applicant's rights therein.
f. That in view of the above undertakings the Plaintiff/Applicant agrees not to press for relief contained in para 35 (e) to (h) regarding rendition of accounts/damages, delivery etc. against Defendant/Respondent.
g. That the above-mentioned terms and conditions are mutually settled between the parties and shall bind both the parties, their directors, heirs, successors, assigns, representatives, agents, dealers, distributors, franchisees and all other persons acting through them or on their behalf as the case may be as undertaking given to the Hon'ble Court.
h. So long as the terms of settlement are not breached, the present settlement is full and final of all the disputes and differences between the parties and all claims, demands, benefits, rights of the Plaintiff/Applicant against the Defendant/Respondent, including those relating to the claim of damages as demanded in the plaint and no such claim etc. shall survive with the recording of the present settlement. That the settlement reached between the parties is not illegal. The parties have reached the settlement without any undue influence or force or coercion."
3. The parties, therefore, jointly seek that the suit be decreed as per the aforesaid terms of settlement.
4. The Court has perused the terms of settlement and find them to be lawful and in order. The parties are represented by learned Counsel who undertake on behalf of their respective clients to abide by the terms of settlement.
5. Accordingly, nothing further survives for adjudication in the suit.
6. The suit stands decreed in terms of the afore-extracted terms of settlement to which the parties shall remain bound.
7. Let a decree sheet be drawn up accordingly.
8. The plaintiff would be entitled to refund of the court fees, if any, deposited by it.
The Settlement Agreement resolved trademark infringement claims and imposed binding obligations on the defendants, including the destruction of infringing goods and non-engagement in further violatio....
Mutual settlement of disputes allows parties to withdraw claims under Order XXIII Rule 3, leading to court decreeing the suit based on agreed terms.
Settlement agreements can resolve disputes and lead to the decree of a suit in terms of the settlement.
The court has the authority to examine and decree a suit based on the terms of settlement between the parties under Order XXIII Rule 3 of the CPC.
The court applied Order XXIII Rule 3 of the CPC to decree the suit in terms of the settlement reached between the parties.
The court can decree a suit in terms of a settlement agreed upon by the parties under Order XXIII Rule 3 of the CPC.
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.
The court upheld the settlement agreement as lawful and binding, leading to the decree of the suit in terms of the settlement.
Settlement of disputes and acknowledgment of terms of settlement by the parties can lead to the court decreeing the suit in favor of the settling party.
Settlement agreements under Order XXIII Rule 3 of the CPC can lead to the decree of suits and resolution of disputes, binding the parties to the terms of the agreement.
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