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IN THE HIGH COURT OF DELHI
Sanjeev Narula, J.
Khadi and Village Industries Commission - Appellant
Versus
JBMR Enterprises - Respondent
CS(COMM) 284 of 2021
Decided On : 04-06-2021




Plaintiff established a prima facie case for trademark and copyright infringement, necessitating an interim injunction to prevent consumer confusion and irreparable harm.

Headnote:(A) Commercial Courts Act, 2015 - Code of Civil Procedure, 1908 - Sections 149, 151, 39 - Application for injunction for trademark and copyright infringement - Plaintiffs, as registered proprietors of KHADI trademarks, alleged counterfeiting by Defendant using identical marks and misleading branding - Defendants have not provided satisfying rebuttal to cease and desist notice, misled consumers, and unlawfully exploited the Plaintiff's goodwill. (Paras 18-26)

(B) Intellectual Property Rights - Trademarks - Court granted interim injunction restraining Defendant from using impugned marks during the pendency of the suit due to prima facie case established by Plaintiff and potential irreparable loss. (Paras 25c, 25d)

Facts of the case:
The Plaintiff is a statutory body and prior adopter of the trademarks KHADI and KHADI PRAKRITIK PAINT. The Defendant allegedly adopted similar trademarks and packaging, causing confusion and misrepresenting products as connected to the Plaintiff. (Paras 18-24)

Findings of Court:
The Court found a prima facie case favoring the Plaintiff, the balance of convenience tilted towards them, and that irreparable harm would occur absent an injunction. The Court thus prohibited the Defendant from using the disputed marks and engaging in misleading conduct. (Paras 25-26)

Issues: Whether the Defendant's use of the marks and packaging could mislead consumers and infringe upon the Plaintiff's established trademarks. (Para 24)

Ratio Decidendi: The court ruled that the Plaintiff had a legitimate claim based on the improper use of its trademarks by the Defendant that led to confusion and potential harm to the Plaintiff's reputation. The need for protection of goodwill in intellectual property upheld the injunction granted. (Paras 25-26)

Result: Interim injunction granted against the Defendant.

Table of Content
1. exemption applications for court fees (Para 3 , 4 , 5 , 6)
2. filing additional documents under commercial courts act (Para 7 , 8 , 9)
3. exemption from filing notarized affidavits (Para 10 , 11 , 12)
4. registration of plaint and issue of summons (Para 13 , 14 , 15 , 16 , 17)
5. trademark infringement and counterfeiting allegations (Para 18 , 19 , 20 , 21 , 22 , 23 , 24)
6. granting interim injunction (Para 25 , 26 , 27 , 28)

ORDER

[VIA VIDEO CONFERENCING]

I.A. 7416/2021 (for exemption)

1. Exemption allowed, subject to just exceptions.

2. The application stands disposed of.

I.A. 7417/2021 (for extension of time for filing Court fee)

3. The present application u/Section 149 and 151 of CPC on behalf of the Plaintiff seeking extension of time for filing Court fee.

4. It is submitted that the Plaintiff, on account of being situated in Mumbai, is unable to transfer the Court fee directly to Stock Holding Corporation of India Ltd., as their office is closed. Therefore, leave is sought to file the same upon resumption of regular functioning of the Court.

5. The application is allowed, subject to the Plaintiff filing court fee within two weeks from the day the lockdown restrictions imposed by the Government of NCT of Delhi and the Government of Maharashtra are lifted and the facilities for issuance of court fee stamps is resumed.

6. The application stands disposed of.

I.A. 7415/2021 (u/O 11 Rule 1(4) seeking leave to file additional documents)

7. This is an application seeking leave to file additional documents under the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (in short `Commercial Courts Act').

8. The Plaintiff, if they wish to file additional documents at a later stage, shall do so strictly as per the provisions of the Commercial Courts Act.

9. Accordingly, the application stands disposed of.

I.A. 7418/2021 (for exemption from filing notarized affidavits)

10. The present application under Section 151 of the Code of Civil Procedure, 1908 (in short `CPC') on behalf of the Plaintiff seeks exemption from filing notarized affidavits.

11. The application is allowed, subject to the Plaintiff filing the exempted documents within two weeks from the day the lockdown restrictions imposed by the Government of NCT of Delhi are lifted and the facility for attestation of affidavits is resumed.

12. The application stands disposed of.

CS(COMM) 284/2021

13. Let the plaint be registered as a suit.

14. Upon filing of process fee, issue summons to the Defendant by all permissible modes. Summons shall state that the written statement shall be filed by the Defendant within 30 days from the date of receipt of summons. Along with the written statement, the Defendant shall also file an affidavit of admission/denial of the documents of the Plaintiff, without which the written statement shall not be taken on record.

15. Liberty is given to the Plaintiff to file a replication within 15 days of the receipt of the written statement. Along with the replication, if any, filed by the Plaintiff, an affidavit of admission/denial of documents of the Defendant, be filed by the Plaintiff, without which the replication shall not be taken on record. If any of the parties wish to seek inspection of any documents, the same shall be sought and given within the timelines.

16. List before the Joint Registrar for marking of exhibits on 9th August, 2021. It is made clear that any party unjustifiably denying documents would be liable to be burdened with costs.

17. List before Court on 10th September, 2021 for framing of issues thereafter.

I.A. 7414/2021 (u/O 39 Rules 1 and 2 r/w Section 151 of the CPC, 1908 seeking interim injunction)

18. The Plaintiff has filed the present application for permanent injunction restraining infringement of trademark and copyright, passing off, rendition of accounts, damages, delivery-up, etc. The Plaintiff is a statutory body established under t

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