IN THE HIGH COURT OF DELHI AT NEW DELHI
Anish Dayal, J.
Karim Hotel Pvt Ltd - Appellant
Versus
Kareem Dhanani - Respondent
CS(COMM) No. 112 of 2022 & I.A. No. 2695 of 2022
Decided On : 06-03-2024
rejection of plaint - trademarks - Code of Civil Procedure, 1908 (CPC) - Order VII Rule 11
Fact of the Case:
The plaintiff filed a suit claiming ownership of the trademarks 'KARIM/KARIM'S/KAREEM' and their trading name M/s. Karim Hotel Pvt. Ltd. Plaintiff sought restraint on defendant's use of the mark 'KAREEM'S' due to alleged infringement and passing off. The previous suit was disposed of with liberty to file a fresh suit after the cancellation petition attained finality. Plaintiff filed the present suit due to the long delay in the cancellation petition and defendant's expansion of business.
Finding of the Court:
The Court found that the previous suit did not result in a final decision and granted liberty to file a fresh suit after the cancellation petition attained finality. The Court held that the rejection of the plaint under Order VII Rule 11 of CPC was not justified, and the suit as instituted shall subsist.
Issues: The main issue was the rejection of the plaint under Order VII Rule 11 of CPC, considering the disposal of the previous suit and the subsequent filing of the present suit by the plaintiff.
Ratio Decidendi: The Court determined that the previous suit did not result in a final decision, and the plaintiff was granted liberty to file a fresh suit after the cancellation petition attained finality. The Court also considered the subsequent cause of action due to the defendant's expansion of business, leading to the filing of the present suit.
Final Decision: The Court decided in favor of the plaintiff, ruling that the rejection of the plaint under Order VII Rule 11 of CPC was not justified, and the suit as instituted shall subsist.
ORDER
Anish Dayal, J. - This order deals with the issue of rejection of plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908 ("CPC") which arose in the following context:
(i) Plaintiff filed the present suit claiming to be the proprietor of the trademarks "KARIM/KARIM'S/KAREEM" (word as well as device) and their trading name M/s. Karim Hotel Pvt. Ltd., of which the word 'KARIM' formed a prominent and essential feature. Plaintiff's founder, Haji Karimuddin, opened the first Karim Restaurant in 1913 near Jama Masjid, Delhi. Over a period of time, they gained extensive reputation for their high-quality Mughlai food and the said restaurant became iconic.
(ii) Plaintiff obtained registrations in these marks, around 50 in number, in various classes including Classes 16, 29, 30, 42, 43. Plaintiff also used the domain name www.karimhoteldelhi.com. Plaintiff came to know of defendant's use of the identical mark 'KAREEM'S' sometime in December 2014, and issued a legal notice in February 2015, which was responded to by defendant in March 2015.
(iii) Thereafter, plaintiff filed a suit being CS(OS) 1885/2015 (later renumbered as CS (COMM) 526/2016) titled "Karim Hotels Pvt. Ltd. v. Kareem A. Dhanani" against defendant ("previous suit"). Therein, defendant took a plea that it had a registration dated 04th February, 2005 for the device mark 'KAREEM'S' bearing No.1336349 in Class 42. Considering the said registration, plaintiff had filed a petition seeking cancellation of defendant's mark before the Intellectual Property Appellate Board ("IPAB"), Mumbai ("the cancellation petition").
(iv) Consequently, this Court vide order dated 17th February, 2016 in the previous suit, passed the following order:
"LA. No. 2316/2016
Issue notice. Learned counsel for the plaintiff accepts notice.
This application has been moved by the defendant under Section 124 of the Trade Marks Act, 1999 with the plea that the plaintiff has disclosed in paragraph 27 of the plaint that the plaintiff has already, i.e. prior to the filing of the suit, moved an application for removal of the defendant's trade mark "KAREEM'S" (LOGO) registered under-No.1336349 in class 42 in the name of the defendant by moving an application under Sections 47/57/125 of the Trade Marks Act before the Intellectual Property Appellate Board (IPAB), Mumbai. The defence of the defendant in the suit is premised on Section 30(2)(e) of the Act, apart from other defences. In view of the aforesaid position, the suit is liable to be stayed.
Learned counsel for the plaintiff does not oppose the application.
Accordingly, the suit is staved and adjourned sine die to await the decision of the IPAB in the aforesaid rectification application. " (emphasis added)
(v) Subsequently, while the cancellation petition was pending before IPAB, Mumbai, this Court passed the following order in the previous suit on 16th November, 2017:
"Present suit has been filed for permanent injunction to restrain infringement, passing off, delivery up, damages etc.
No injunction order has been passed by this Court in the present suit.
Admittedly, the plaintiff has filed a proceeding before the Intellectual Property Appellate Board (for short 'IPAB') for cancellation of the defendant's mark.
Present suit is being repeatedly adjourned since 17th February, 2016 to await the outcome of the IPAB.
This Court is of the opinion that no fruitful purpose would be served by repeatedly adjourning the present suit as not only the proceedings before the IPAB are bound to take time, but any order passed by the IPAB may be challenged by either of the parties.
Consequently, the present suit and pending applications are disposed of with liberty to the plaintiffs to file an appropriate proceeding after the IPAB has disposed of the proceeding for cancellation of the defendant's mark and the said order has attained finality. The rights and contentions of all parties are left open.
Registry is also directed to issue to an authorized representative of the plaint
Bengal Waterproof Ltd. v. Bombay Waterproof Mfg. Co.
Bhargavi Constructions v. Kothakapu Muthyam Reddy
Mumbai International Airport (P) Ltd. v. Golden Chariot Airport
The court confirmed that non-compliance with Section 12A of the Commercial Courts Act does not invalidate a suit if urgent relief is sought due to ongoing infringement.
To establish trademark infringement, the plaint must demonstrate use 'in the course of trade'; mere display of a mark without commercial activity does not satisfy this requirement.
Each act of trademark infringement constitutes a fresh cause of action, allowing the aggrieved party to file a new suit for ongoing violations.
Point of Law : Considering said registration, Plaintiff had filed a petition seeking cancellation of Defendant's mark before IPAB - Cancellation petition having been filed, infringement suit was stay....
A plaintiff cannot file multiple suits for the same cause of action concurrently in different jurisdictions; it constitutes forum shopping and is impermissible under Order II Rule 2 CPC.
Jurisdiction for trademark infringement suits requires courts to accept plaint allegations as true; future apprehension of infringement can establish justiciability.
A licensee cannot claim disparagement of trademark without the owner present as a party; non-joinder does not justify the rejection of a plaint under Order VII Rule 11 CPC.
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