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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
BASF SE - Appellant
Versus
Ravi Crop Science Limited - Respondent
CS(COMM) 230 of 2021 & I.A. 6497 of 2021, I.A. 10987 of 2021
Decided On : 01-09-2021




An amicable settlement resolving patent disputes, where parties acknowledge validity and agree not to infringe, is enforceable under Order XXIII Rule 3 of the CPC.

Headnote:(A) Code of Civil Procedure, 1908 - Order XXIII Rule 3 - Settlement of disputes - The parties reached an amicable settlement under which the Defendants agreed not to infringe the Plaintiff's Indian Patent No. 271338 and acknowledged its validity - The terms include undertakings regarding non-manufacturing of infringing products and responsibilities on both parties - The suit is decreed in terms of the settlement that shall be binding on all parties and their legal representatives. (Paras 1-6)

(B) Patent Law - Validity and non-infringement - Acknowledgment of a patent's validity and an undertaking not to challenge it is significant in resolving patent disputes amicably. (Paras 4-6)

Facts of the case:
The parties involved are the Plaintiff and multiple Defendants, with an amicable resolution of disputes pertaining to Indian Patent No. 271338. The terms of settlement included commitments not to infringe the patent or challenge its validity.

Findings of Court:
The suit is decreed based on the settlement agreement, binding on all parties involved.

Issues: The main issue addressed is the amicable resolution and the terms set forth by the parties regarding patent infringement.

Ratio Decidendi: The court held that the amicable settlement is enforceable and the parties must adhere to the legally binding terms established within the settlement agreement.

Result: The suit is decreed in terms of the settlement.

Table of Content
1. settlement terms between parties established. (Para 1 , 2 , 3)
2. suit decreed as per settlement. (Para 4)
3. court fee refund and decree proceedings. (Para 5 , 6 , 7 , 8)

ORDER (Oral)

(Video-Conferencing)

I.A. 10987/2021 in CS(COMM) 230/2021

1. The disputes between the parties stand amicably resolved, and IA 10987/2021 has been moved under Order XXIII Rule 3 of the Code of Civil Procedure, 1908(CPC) for decreeing the suit in accordance with the settlement.

2. The terms of settlement, as contained in paras 4 and 6 of the application, may be reproduced thus:

    "4. That during the pendency of these proceedings, the Plaintiff and Defendant No.1, Ravi Crop Science Limited, Defendant No.2, Best Agrolife Limited and Defendant No.3 Best Crop Science LLP have arrived an amicable settlement in the following terms and conditions:

    i) The Defendants undertake that it would not infringe the Plaintiffs Indian Patent No. 271338 till the expiry of the patent;

    ii) The Defendants acknowledge the validity of the Plaintiff's patent No. 271338 and further undertake that they will not challenge the validity of the said patent;

    iii) The Defendants undertake that they have not manufactured any product containing `Thiophanate Methyl 450 gil + Pyraclostrobin 50 gll(wlv) FS', subject matter of IN 271338

    iv) The Defendants undertake that they are also not in possession of any product which infringes the subject matter of Indian Patent No. IN 271338;

    v) The present terms of settlement are restricted to product covered and claimed in IN 271338.

    vi) Subject to the Defendants' undertaking, the Plaintiff agrees not to pursue its reliefs of delivery up, damages, rendition of accounts and costs as stated in paragraphs 52 (b), 52(c), 52(d) and 52 (e) of the plaint respectively;

    vii) In view of the settlement arrived at, the parties agree to bear their own attorney fees, Court cost, expenses and other related costs and expenses.

    6. That the Parties hereby agree and acknowledge to the present compromise application has been signed and executed by the respective representatives and that the terms of compromise shall be binding henceforth on all the parties to the settlement, there legal heirs, representatives and assignees in business, interest and title."

3. Para 5 of the application records the undertaking of the parties to remain bound by the aforesaid terms of settlement.

4. In view thereof, nothing survives for adjudication in the present suit. The suit accordingly stands decreed in terms of the settlement between the parties, which shall be treated as a part of this order.

5. The parties shall remain bound by the aforesaid terms of settlement.

6. The plaintiff shall be entitled to refund of the full court fee deposited by them in the light of the law laid down by this Court in Munish Kalra v. Kiran Madan, 2019 SCC OnLine Del 8021 read with order XXXIII Rule 3 of the CPC.

7. The Registry is directed to draw-up the decree sheet accordingly.

8. All other pending application(s), if any, stand disposed of accordingly.

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