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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Raaj Unocal Lubricants Limited - Appellant
Versus
Apple Energy Pvt. Ltd. - Respondent
CS(COMM) 100 of 2021 & I.A. 3133 of 2021, I.A. 3134 of 2021, I.A. 3135 of 2021, I.A. 3136 of 2021
Decided On : 08-03-2021




Plaintiff is entitled to exclusive rights over trademarks based on established agreements; ongoing litigation by defendants in a foreign jurisdiction deemed vexatious.

Headnote:(A) Trade Marks Act, 1999 - Section 2(l)(zg) - Plaintiff claims exclusive rights to the trademarks "UNOCAL", "76" and "UNOCAL 76" based on a Memorandum of Understanding and a license agreement with UNOCAL for manufacturing and marketing in India - Defendant No. 2 sought to use similar trademarks, leading to legal proceedings - Plaintiff asserts that Defendant No. 2 is aware of their rights and claims in ongoing trademark disputes. (Paras 11, 19-21, 33-35)

(B) Vexatious Litigation - Principles governing ex parte injunction - Court may intervene to prevent legal action that threatens to cause irreparable harm to a party in cases of trademark disputes, particularly when the opposing party conceals material facts. (Paras 27-34)

Facts of the case:
The plaintiff, established in collaboration with a U.S. corporation, claims long-term use of trademarks in India, supported by agreements that grant ownership rights and prevent competing activities by the defendants.

Findings of Court:
The court found prima facie evidence supporting the plaintiff's claim to exclusive rights over the trademarks and deemed the defendants' U.S. litigation as vexatious.

Issues: The main issues included the validity and enforcement of trademark rights in India, and whether the defendants' actions constituted legal harassment.

Ratio Decidendi: The court concluded that the prior agreements established exclusive rights for the plaintiff, and allowed for injunctive relief to prevent potential harm from the defendants' actions.

Result: Interim injunction granted, restraining defendants from proceeding with related claims in U.S. courts.

Table of Content
1. exemptions and hearing dates set (Para 1 , 2 , 3 , 4 , 5 , 6)
2. grant of interim injunction prayed by plaintiff (Para 10 , 11 , 16)
3. prima facie case for injunction established (Para 29 , 30 , 31 , 32 , 33)
4. court orders interim injunction against defendants (Para 35 , 36)

ORDER

I.A.3136/2021 (Section 151 CPC for exemption)

1. Subject to the plaintiff filing legible copies of any dim documents on which it may seek to place reliance within a period of four weeks' from today, exemption is granted for the present.

2. The application stands disposed of.

I.A.3135/2021 (Section 151 CPC for exemption)

3. For the reasons stated in the application, prayer in the application is allowed.

4. The application stands disposed of.

I.A.3134/2021 (Order XXVI Rule 9 of the CPC)

5. Issue notice, returnable on 23rd March 2021 before the Court.

6. Let a response to this application be filed within a period of ten days from today with advance copy to learned counsel for the plaintiff/applicant, who may file rejoinder thereto, if any, before the next date of hearing.

CS(COMM) 100/2021

7. Issue summons to the defendants to file a written statement in response to the suit within a period of four weeks, accompanied by affidavit of admission/denial of plaintiff's documents with advance copy to the plaintiff, who may file replication thereto, if any, within two weeks thereof, accompanied by affidavit of admission/denial of defendants' documents.

8. The written statement and replication would not be taken on record, unless accompanied by said affidavits.

9. List the suit for completion of pleadings, admission/denial of documents and marking of exhibits before the Joint Registrar (Judicial), on 3rd May 2021.

IA 3133/2021 (Order XXXIX Rules 1 and 2 CPC)

10. Mr. Akhil Sibal, learned Senior Counsel appearing for the plaintiff, prays for ad interim relief, in terms of the prayer clause in this application, which reads thus:

    "Therefore, in view of the above it is most respectfully prayed that this Hon'ble Court may in the interim, pending the disposal of the instant matter, grant the following interim reliefs-

    a. An order of interim injunction restraining the Defendant No. 2, its business associates, partners, directors, principal officers, family members, servants, agents, dealers, distributors, franchisees and anyone acting for and on its behalf from instituting any legal action or proceeding with the Civil Action No. 4:21-cv-279 titled "Phillips 66 Company v Raaj Unocal Lubricants Limited" before the United States District Court at Southern District of Texas (Houston Division).

    b. An order of interim injunction restraining the Defendants, their business associates, partners, directors, principal officers, family members, servants, agents, dealers, distributors, franchisees and anyone acting for and on their behalf from selling, manufacturing, advertising, promoting or in any other manner using impugned trade mark or any other mark identical/deceptively similar to the Plaintiff's trademarks UNOCAL, UNOCAL 76 or 76 with respect to goods falling under Class 4 and any cognate or allied goods either as a trade mark or part of a trade mark, trade name, or part of a trade name, corporate name, email, domain name or part of a domain name or in any other manner which would result in Passing off or any act of Unfair Competition including resulting in confusion of any manner whatsoever;

    c. Pass any other ex parte ad interim orders, in terms of the above;

    d. Pass any other orders as this Hon'ble Court may deem fit in the interest of justice."

11. The plaintiff was established in technical collaboration with the Union Oil Company of California (UNOCAL), which is stated to be a petroleum explorer and lubricants manufacturer based in USA.

12. The plaint sets out, in para 11, various achievements of the plaintiff which, for the purposes of the present order, is not necessary to reproduce.

13. By a Licence Agreement dated 25th Se

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