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2023 Supreme(Del) 5889

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
H-d U. S. A., Llc - Appellant
Versus
Vijaypal Dhayal Owner/ Proprietor of Red Rose Industries - Respondent
CS(COMM) 609 of 2023, I.A. 16673 of 2023 & I.A. 16676 of 2023
Decided On : 25-09-2023

Advocates appeared:
Mr. Ranjan Narula and Mr. Shashi P. Ojha, Advocates, for the Plaintiff.
Mr. G.D. Bansal, Advocate, for the Defendant.

IMPORTANT POINT
The main legal point established is that the power of attorney granted the authority to file legal proceedings related to intellectual property rights, and the replication of a registered trademark by the defendant constitutes a prima facie case of infringement and passing off.

Headnote:

Trademark Infringement - Power of Attorney - [Order XXXIX Rules 1 & 2 of CPC] - [CS(COMM) 609/2023]

Fact of the Case:

The defendant replicated the 'Eagle Logo/Device mark' of the plaintiff, which is a registered trademark, leading to a prima facie case of infringement and passing off.

Finding of the Court:

The court found that the defendant's mark replicated the plaintiff's registered trademark, leading to a prima facie case of infringement and passing off. The court relied on the law laid down by the Supreme Court in Laxmikant V. Patel v. Chetanbhai Shah and Midas Hygiene Industries P. Ltd. v. Sudhir Bhatia to grant an injunction in favor of the plaintiff.

Issues: The issues involved the authority of the person filing the suit and the infringement of the plaintiff's registered trademark by the defendant.

Ratio Decidendi: The court held that the power of attorney granted the authority to file legal proceedings related to intellectual property rights, and the defendant's mark replicated the plaintiff's registered trademark, leading to a prima facie case of infringement and passing off.

Final Decision: The court allowed the application and granted an injunction restraining the defendant from dealing in products bearing the infringing mark, and maintained the status quo with respect to the inventoried goods bearing the infringing mark.

JUDGMENT (Oral)

C. Hari Shankar, J.

(Through Video-Conferencing)

I.A. 16673/2023 (under Order XXXIX Rules 1 & 2 of CPC)

1.  I have heard Mr. Ranjan Narula and Mr. G.D. Bansal, learned Counsel for both sides on this application. Mr. Bansal submits that a response to this application was filed on 18 September 2023 which is still not on record. I have, however, queried of Mr. Bansal as to the stand that he has taken in response to IA 16673/2023. Mr. Bansal, very fairly, submitted that there is no clear opposition to the merits of the said application, as rival marks of the plaintiff and the defendant are indeed similar to each other.

2.  However, Mr. Bansal raises a preliminary objection to the maintainability of the suit. He submits that the suit could not have been filed by Mr. Rakesh Chhabra as he was not duly authorised to do so. He has drawn my attention to the power of attorney filed with the suit, which reads thus:

"Power of Attorney

We, H-D U.S.A., LLC (the Company) having place of business at 3700 West Juneau Avenue, Milwaukee, Wisconsin 53208, United States of America, do hereby nominates, constitutes and appoints Mr. Rakesh Chabbra, Mr. Krishanpal Singh, Ms. Anita Rawat, Ms. Sonu Kapoor, Mr. B. Thiyagu and Ms. Suriya Lekha of Office no. 401, 4th floor, Suncity Success Tower, Golf Course Extension Road, Section-65, Gurugram-122005, National Capital Region (Haryana), India, as our attorney with the powers herein mentioned and who are duly trained in identifying the trademarks and and other products comes under above said company and on their behalf to do the following acts, deeds, matters or things that is to say

1. To make, declare, swear, affirm, sign, seal, deliver, verify, pleadings, affidavits, caveats, declarations, applications, petitions, counter-claims, papers, deeds, assurances, instruments, agreements, documents, and writings usual, necessary or expedient for or in furtherance of one or more suits or criminal proceedings filed or proposed to be filed by the Company in an appropriate Court, before a police officer or any other law enforcement or judicial authority in India against any person violating the intellectual property rights of the Company and/or its representative, directors, officers, servants, or agents (hereinafter called the said proceedings).

2. To file, commence, prosecute, enforce, defend, answer, oppose, appear in or appeal against, institute and prosecute appeal, revision and review proceedings in respect of the said suits and all actions and legal proceedings and demands whether civil, criminal, political or administrative in which the Company is or may be concerned or interested in India and to file and or initiate appeal against any order passed by any court, tribunal or authority in India relating to any trade mark, copyright or any other intellectual property rights of the Company and to sign, execute, affirms, and verify petitions, memoranda of appeal, affidavits, applications or any pleadings and to depose on behalf of the Company. In any such action or proceedings, to retain employ and remunerate advocates, solicitors and other legal practitioners and advisors and to sign warrants, Vakalatnamas and other necessary authorities.

3. To appoint any substitute or substitutes and to delegate to such substitute or substitutes any one or more of the powers herein delegated by the Company to the said Attorney or Attorneys and to revoke the appointment of such substitute at their pleasure.

4. The Company hereby ratifies and confirms and agrees to ratify and confirm whatsoever the said Attorneys had lawfully done or caused to be done, shall lawfully do or cause to be done in or about the premises by virtue of these presents. The Power of Attorney shall be valid for a term of approximately three (3) years and may be revoked at any time during this period by the Company.

AND, we hereby ratify and confirm all acts, if any, done by the said Attorney in respect of the matters aforesaid, we agree to ratify an

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