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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Tata Sons Private Limited - Appellant
Versus
Sunil Keshavji Tataria - Respondent
CS(COMM) 308 of 2020 & I.A. 6632 of 2020
Decided On : 31-08-2021




The court confirmed the validity of a mediated Settlement Agreement resolving trademark infringement, establishing entitlement to court fee refund under precedent cases.

Headnote:(A) Trade Marks Act, 1999 - Sections 29 and 30 - Infringement of registered trademark - Permanent injunction sought to restrain infringement and passing off - Defendants engaged in manufacturing and selling adult diapers under an infringing mark violating registered trademark "TATA". (Paras 1-3)

(B) Mediation - Court allowed parties to explore amicable settlement and resolved dispute via a Settlement Agreement - Validity of agreement confirmed by court. (Paras 4-10)

Facts of the case:
Plaintiff filed suit for infringement of trademark against defendants selling infringing products under the mark "TATA". Independent investigation confirmed misuse of trademark. Mediation led to settlement between parties. (Paras 1-3, 5)

Findings of Court:
The mediated Settlement Agreement is valid and lawful, leading to decree in terms of the settlement. Plaintiff entitled to refund of court fees based on prior case precedents. (Paras 8, 11-12)

Issues: Whether the defendants engaged in trademark infringement and whether the terms of the Settlement Agreement should be enforced. (Paras 2, 5, 8)

Ratio Decidendi: The court affirmed the validity of the Settlement Agreement reached during mediation and determined that refund of court fees was warranted based on prior rulings in similar cases. (Paras 8, 11)

Result: Suit decreed in terms of the Settlement Agreement; plaintiff entitled to refund of court fees.

Table of Content
1. trademark infringement and misappropriation (Para 1 , 2 , 3)
2. referral to mediation for settlement (Para 4 , 5)
3. terms of amicable resolution (Para 6 , 7 , 9)
4. decree based on settlement agreement (Para 8 , 12)
5. refund of court fees due to amicable settlement (Para 10 , 11)
6. disposal of pending application (Para 13)

JUDGMENT (Oral)

The present suit has been filed by the plaintiff seeking permanent injunction restraining infringement of registered trade mark, passing off, dilution and tarnishment of trademarks, damages, rendition of accounts, delivery up in respect of plaintiff's registered trade mark.

2. The defendants are engaged in the manufacture and sale of adult diapers and underpads which bear the infringing mark/logo .

3. In 2020, counsel for plaintiff received information regarding defendants' adult diapers and underpads being sold under the trade mark and the infringing mark /logo and deputed independent investigator, who conducted investigation and found that defendants were engaged in the business through domain/website www.tatariahygiene.com, which amounted to misappropriation of plaintiff's trade mark "TATA".

4. During pendency of the suit, vide order dated 16.02.2021, the matter was referred to Delhi High Court Mediation and Conciliation Centre for parties to explore possibility of settlement through mediation.

5. Learned counsel for the parties have informed this Court that the subject matter of the suit has been amicably resolved in terms of Settlement Agreement dated 03.08.2021 passed by Delhi High Court Mediation and Conciliation Centre and terms of settlement are enumerated therein.

6. Learned counsel for the plaintiff submits the terms of settlement are incorporated in Para-1(a) to (j) of the aforesaid Settlement Agreement dated 03.08.2021 and the present suit be decreed in terms thereof.

7. Learned counsel appearing on behalf of defendants submit that the defendants undertake to abide by the terms of aforesaid Settlement Agreement dated 03.08.2021.

8. This Court has gone through the contents of the mediated Settlement Agreement dated 03.08.2021 and find it to be valid and lawful. Accordingly, the present suit is decreed in terms of Settlement Agreement dated 03.08.2021, which shall form part of decree. Decree sheet be accordingly drawn.

9. Both the parties shall remain bound by the terms of the Settlement Agreement dated 03.08.2021.

10. At this stage, learned counsel for plaintiff prays for refund of entire court fees under the provisions of Section 16A of the COURT FEES ACT .

11. A Division Bench of this Court in Nutan Batra Vs. M/s. Buniyaad Associates, 2018 SCC OnLine Del 12916, while relying upon decision of Hon'ble Supreme Court in Afcons Infrastructure Limited v. Cherian Varkey Construction Company Private Limited, (2010) 8 SCC 24, had allowed an appeal against the order of refusal of refund of entire court fee in a suit. Further, a Coordinate Bench of this Court in Munish Kalra Vs. Kiran Madan and Others, 2019 SCC OnLine Del 8021 taking into account the fact that the dispute stands amicably settled between the parties, had relied upon decisions in Afcons Infrastructure Limited (Supra) and Nutan Batra (Supra) and directed refund of the entire court fees.

12. Since the dispute inter se parties stand resolved prior to commencing of pleadings, this Court finds that plaintiff is entitled to refund of entire court fees. Registry is directed to issue necessary certificate/ authorization in favour of the plaintiff to seek refund before the appropriate authorities.

13. Pending application stands disposed of being infructuous.

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