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IN THE HIGH COURT OF DELHI
Manmohan, Navin Chawla, JJ.
Britannia Industries Ltd. - Appellant
Versus
ITC Ltd. - Respondent
FAO(OS) (COMM) 65 of 2021 & CM Appl. 14813 of 2021 and FAO(OS) (COMM) 66 of 2021 & CM Appl. 14816 of 2021
Decided On : 04-08-2021




The court recognized the validity of amicable resolutions in intellectual property disputes, allowing modifications in packaging while dismissing prior claims for damages.

Headnote:(A) Specific Relief Act, 1963 - Sections 10 and 11 - Appeals concerning intellectual property dispute on packaging - The parties resolved their disputes amicably regarding the original and modified packaging of products. (Paras 5 and 6)

(B) Dismissal of interim applications - Initial gravamen were dismissed, leading to appeals - The appellants relinquished claims of damages and costs in exchange for the agreed terms. (Para 6)

Facts of the case:
The appellants challenged the packaging of two products by the respondents. During proceedings, the respondents modified the packaging. The suits were filed to address these concerns, leading to the current appeals.

Findings of Court:
The impugned order was set aside, with appeals disposed and consented terms established without costs.

Issues: The key issues included the modification of product packaging and the resolution of claims.

Ratio Decidendi: The court acknowledged that the amicable resolution permitted the respondents to continue using modified packaging, signifying a significant approach towards resolving commercial disputes.

Result: Appeals allowed and suits decreed as per the agreed terms.

Table of Content
1. impugned and modified product packaging details. (Para 2 , 3)
2. dismissal of interim applications. (Para 4)
3. amicable resolution of disputes and agreed terms. (Para 5)
4. setting aside of the impugned order and conclusion of appeals. (Para 6)
5. signing of order by advocates as token of acceptance. (Para 7)

JUDGMENT

Manmohan, J. (Oral)--The appeals have been heard by way of video conferencing.

2. The present appeals arise from the impugned order/judgment dated 05th April, 2021 passed in I.A Nos. 12115/2020 in CS(COMM) 553/2020 and I.A No. 12125/2020 in CS(COMM) 554/2020, which were filed impugning the packaging of the Respondent No.1/Defendant No.1 depicted hereinbelow:

Product DescriptionImpugned Packaging in CS(COMM) No. 553 of 2020
Sunfeast Farmlite 5-Seed Digestive (Pillow Packaging)
Sunfeast Farmlite 5-Seed Digestive (Box Packaging)
Sunfeast Farmlite Veda Digestive (Pillow Packaging)
Sunfeast Farmlite Veda Digestive (Box Packaging)

3. During the pendency of the suits, the Defendant No.1/Respondent No.1 modified the packaging of the products in question, namely, `Sunfeast Farmlite 5-Seed Digestive' and `Sunfeast Farmlite Veda Digestive', and released the same into the market. This modified packaging is depicted hereinbelow:

Product DescriptionModified Packaging in CS(COMM) No. 553 of 2020
Sunfeast Farmlite 5-Seed Digestive (Pillow Packaging)
Sunfeast Farmlite 5-Seed Digestive (Box Packaging)
Sunfeast Farmlite Veda Digestive (Pillow Packaging)
Sunfeast Farmlite Veda Digestive (Box Packaging)

4. Vide the impugned order/judgment dated 5th April, 2021, the learned Single Judge dismissed I.A Nos. 12115/2020 in CS(COMM) 553/2020 and I.A No. 12125/2020 in CS(COMM) 554/2020, thereby giving rise to the present appeals.

5. The parties have now amicably resolved the matter as per the following agreed terms:

i. The Respondents shall not use the product packaging impugned in the Suits bearing CS(COMM) No. 553/2020 and CS(COMM) No. 554/2020 as depicted hereinabove in para 2.

ii. The Respondents have modified their packaging of the products `Sunfeast Farmlite 5-Seed Digestive' and `Sunfeast Farmlite Veda Digestive' which are already in the market. The same have been reproduced hereinabove in para 3.

iii. The Appellant has no objection to the use of the modified packaging of the Respondents as depicted hereinabove.

iv. In consideration of the above acknowledgments by the Respondents, the appellant gives up its claim for rendition of accounts, damages, costs etc.

v. The parties further agree that the present appeals be disposed of and the Suits bearing CS(COMM) No. 553/2020 and CS(COMM) No. 554 of 2020 be decreed in terms of the above.

6. Consequently, the impugned order dated 5th April, 2021 passed in I.A Nos. 12115/2020 in CS(COMM) 553/2020 and I.A No. 12125/2020 in CS(COMM) 554/2020 is set aside and the same shall not be treated as a precedent. The questions of law raised in the present appeals are left open. Further both the Civil Suits being CS(COMM) 553/2020 and CS(COMM) 554/2020 are withdrawn to this Court and decreed in terms hereinabove but without any order as to costs. Accordingly, the present appeals along with pending applications and CS(COMM) 553/2020 as well as CS(COMM) 554/2020 stand disposed of.

7. The Advocates on Record for both the parties are directed to sign the today's order sheet as a token of acceptance of the terms mentioned hereinabove. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.

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