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2023 Supreme(Del) 5424

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Delhi Public School Society - Appellant
Versus
Aviral Education Welfare And Cultural Society & Anr. - Respondents
CS(COMM) 580 of 2020, I.A. 13900 of 2023 & I.A. 20500 of 2023
Decided On : 16-10-2023

Advocates appeared:
Mr. Puneet Mittal, Sr Advocate with Mr. Rupendra Pratap Singh and Ms. Sakshi Mendiratta, Advocates, for the Plaintiff.
Mr. Kamal Gupta, Mr. Sparsh Aggarwal and Mr. Manish Vashist, Advocates, for Aviral Education Welfare And Cultural Society.

IMPORTANT POINT
The central legal point established in the judgment is the protection of trademarks and the enforcement of injunctions to prevent trademark infringement.

Headnote:

Trademark Infringement - Delhi Public School - Trade Marks Act, 1999 - Section 2(1)(zg), Section 29 - The court upheld the Plaintiff's claim of enormous goodwill and reputation in the mark and the name 'Delhi Public School' and restrained the Defendants from using the DPS marks. The Defendants were directed to cease the use of the Plaintiff's name, mark, and logos after the current academic year, and to pay a further sum of Rs.20,00,000/- plus GST to the Plaintiff by 31st December, 2023.

Fact of the Case:

The Plaintiff, Delhi Public School Society, filed a suit seeking permanent injunction against the Defendants for misuse of the Plaintiff's name, mark, and logos. The Defendants continued to run the school under the Plaintiff's name and mark despite the termination of a joint venture agreement.

Finding of the Court:

The Court found that the Defendants were in contempt of the injunction order and restrained them from using the DPS marks. The Court took a compassionate view to ensure the students' careers were not harmed and issued directions for the Defendants to cease the use of the Plaintiff's name, mark, and logos after the current academic year.

Issues: Trademark infringement, breach of joint venture agreement, contempt of court orders

Ratio Decidendi: The Defendants were restrained from using the DPS marks, and the Court issued directions for the Defendants to cease the use of the Plaintiff's name, mark, and logos after the current academic year.

Final Decision: The suit was decreed in favor of the Plaintiff, and the Defendants were directed to cease the use of the Plaintiff's name, mark, and logos after the current academic year, and to pay a further sum of Rs.20,00,000/- plus GST to the Plaintiff by 31st December, 2023.

JUDGMENT

Prathiba M. Singh, J. (Oral) - This hearing has been done through hybrid mode.

2. The present suit has been filed by the Plaintiff-Delhi Public School Society seeking permanent injunction restraining misuse of the Plaintiff's name-DELHI PUBLIC SCHOOL, mark-DPS as also the accompanying logos which are extracted below:

Together, these marks are referred to collectively as `DPS marks'.

3. The suit has been filed against Defendant No.1-M/s Aviral Education Welfare and Cultural Society (`AEWCS') which is running the Defendant No.2 School-Delhi Public School in Sahibabad-Loni Road, Indraprastha Yojna, Teela Shahbazpur, Bhopura-Loni Road, Sahibabad, Ghaziabad201102, Uttar Pradesh.

4. The case of the Plaintiff is that the first school was established in 1949 under the name Delhi Public School. The Plaintiff's Delhi Public School, R.K. Puram was established in 1972 and the Plaintiff has more than 200 affiliated schools across the country. There are 10 schools which have been established outside India by the Plaintiff.

5. Considering these facts, the Plaintiff claims enormous goodwill and reputation in the mark and the name. The Plaintiff also claims rights in all the DPS marks. Both the said marks and the logos are also registered trademarks-the details of which are set out as under:

S. NoTrade MarkApplication No.ClassUserDate of ApplicationStatus1.16089461601.12.194808.10.2007Registered2.16089473501.12.194808.10.2007Registered,3.16089483601.12.194808.10.2007Registered4.16089494101.12.194808.10.2007Registered5.16089504201.12.194808.10.2007Registered6.DPS16089511601.12.194808.10.2007Registered7.DPS16089523501.12.194808.10.2007Registered8.DPS16089544201.12.194808.10.2007Registered9.DPS16089553601.12.194808.10.2007Registered10.DPS16089534101.12.194808.10.2007Pending11.DELHI PUBLIC SCHOOL21115051601.12.194808.03.2011Pending12.DELHI PUBLIC SCHOOL21115063601.12.194808.03.2011Pending13.DELHI PUBLIC SCHOOL21115073501.12.194808.03.2011Pending14.DELHI PUBLIC SCHOOL21115084101.12.194808.03.2011Pending15.DELHI PUBLIC SCHOOL21115094201.12.194808.03.2011Registered

6. The following marks have also been declared as well-known marks by the office of the Registrar of Trademarks. The said entry as published on the list of well-known marks is set out below:

S.No.TrademarkProprietorDetermining AuthorityReportObservation116.DELHI PUBLIC SCHOOL/DPS SERVICE BEFORE SELF DELHI PUBLIC SCHOOL LOGO (with reference Education & Allied Services.)The Delhi Public School SocietyF BlockEast of KailashNew Delhi-110065Registrar of Trade MarksN/AThe Registrar observed that the Mark is well-known with reference Education & Allied Services.

7. The case of the Plaintiff is that Defendant No. 1 had approached the Plaintiff for a joint venture agreement to run a school under the name and style Delhi Public School Sahibabad in Ghaziabad-201102, Uttar Pradesh. The agreement was entered into on 10th October, 2016 as per which, the Defendants were permitted to use the trademarks of the Plaintiff. At the time of entering into the agreement a sum of Rs.25,00,000/- was paid as Signing Fee, by the Defendant No. 1 to the Plaintiff. For various reasons, the said agreement was terminated on 24th September, 2018. Despite the said termination, the Defendants continued to run and operate the school which then led to the filing of the present suit.

8. Initially, in view of the arbitration clause which was there in the contract, a petition under Section 9 of the Arbitration and Conciliation Act, 1996 was also filed by the Defendant No. 1. However, no relief was granted in favour of the Defendant No. 1. Subsequently, the Defendant No. 1 filed a WP(C) 8219/2020 titled Aviral Education Welfare and Cultural Society & Ors. v. Delhi Public School Society for declaring certain clauses of the agreement as void. Upon the service of the notice in the said writ petition, the present suit came to be filed by the Plaintiff.

9. Vide order dated 24th December, 2020, the Court had refrained from passing off an

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