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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Kores (India) Limited - Appellant
Versus
Doms Industries Private Limited - Respondent
CM(M)-IPD 6 of 2022 & CM Appls. 10457 of 2022 and 10458 of 2022
Decided On : 03-03-2022




The trial court must assess the prima facie tenability of a plea of trademark invalidity in infringement actions, underpinning the jurisdictional responsibility under Section 124 of the Trademarks Act.

Headnote:(A) Trademarks Act, 1999 - Sections 124 - Challenge to trademark validity - Defendant sought to frame additional issues regarding validity of trademarks in a suit for infringement. Commercial Court denied this opportunity based on belief it lacked jurisdiction to determine validity. Court ruled this view was incorrect under Section 124, setting aside the impugned order. (Paras 9, 10, 12, 13)

(B) Jurisdiction - The trial court must assess the prima facie tenability of a plea of invalidity if raised in infringement action, before proceeding with acceptance or dismissal. (Paras 10, 11)

(C) Additional Issues - Court provided directions for addressing additional issues as part of the existing claims while clarifying which would be treated as defenses. (Paras 13, 14)

Facts of the case:
Suit for permanent injunction for trademark infringement filed by Plaintiff against Defendant concerning 'DOMS NEON' pencils and similar marketed 'Kores Funcils Neon'. Previous suits regarding trademark validity noted but no injunctions were granted. (Paras 3, 4)

Findings of Court:
The Defendant should file an application under Section 124 of the Trademark Act for the challenge on the validity of Plaintiff's trademarks, which the trial court must then decide. (Paras 10, 13)

Issues: Main issues included the validity of trademarks, potential suppression of facts by Plaintiff, and Defendant's rights to use neon colors descriptively. (Paras 9, 12)

Ratio Decidendi: The Court found the Commercial Court erred in believing it could not consider trademark validity; it must determine the prima facie status of invalidity claims in the context of ongoing litigation. (Paras 9, 10)

Result: Impugned order set aside; Defendant permitted to move for trademark validity challenge.

Table of Content
1. challenge to trademark registrations (Para 2 , 3 , 4)
2. arguments on additional issues in trademark litigation (Para 5 , 6 , 8)
3. overview of trademarks and evidence presented (Para 7 , 9)
4. court's role in trademark validity challenges (Para 10 , 11)
5. decisions on additional issues and trial progression (Para 12 , 14)
6. procedure for challenging trademark registrations (Para 13)
7. conclusion and order of the court (Para 15 , 16)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.

2. The present petition challenges the impugned order dated 4th January, 2022, passed in CS (COMM) 312/19 titled Doms Industries Private Limited v. Kores India Limited, by which the application of the Petitioner/Defendant (hereinafter "Defendant") under Order XIV Rule 5 CPC for framing of additional issues has been rejected by the Commercial Court.

3. The submission of Mr. Abhishek Mishra, ld. Counsel appearing for the Defendant, is that the suit in this case was filed by the Respondent/Plaintiff (hereinafter "Plaintiff") for permanent injunction restraining infringement of trademarks, unfair trade practice, damages, etc. He submits that initially, prior to registration of the Plaintiff's marks, a suit being TM No.43/2018 titled Doms Industries Private Limited v. Kores (India) Limited, was filed by the Plaintiff against the Defendant, before the Ld. ADJ, Saket District Court (South East), Delhi, with regard to the mark "NEON" on the packaging of pencils. However, no injunction was granted against the Defendant in the said suit. The said decision dated 22nd September, 2018 is stated to have been appealed against before the High Court of Delhi. Thereafter, the present suit being CS (COMM) 312/19 was filed by the Plaintiff on the strength of five trademarks registrations bearing nos. 3689489, 3689490, 3689491, 3689492 and 3689493. In this suit, an interim injunction was granted on 5th November, 2018, which is stated to be the subject matter of challenge in another appeal before the Delhi High Court.

4. All these above trademark registrations relate to `DOMS PENCILS' which have different colour combinations and colour schemes. The case of the Plaintiff is that the Defendant's products being, "Kores Funcils Neon" is an infringement of the Plaintiff's trademarks/trade dress/etc., as they are identical to the Plaintiff's, "DOMS NEON" pencils.

5. It is the submission of ld. Counsel for the Defendant, that in this suit being CS (COMM) 312/19, when the initial issues were framed on 5th October, 2020, neither of the parties were present and so the issues relating to validity of the said trademarks and some other issues, could not be placed before the Commercial Court at that time. Accordingly, a fresh application was moved under Order XIV Rule 5 CPC read with Section 15 CPC, seeking inclusion of additional issues, which was rejected vide the impugned order.

6. Mr. Sahni, ld. Counsel for the Plaintiff, on the other hand, submits that the Plaintiff has already filed the evidence by way of affidavit and these additional issues are being sought to be canvassed at a very late stage. This ought not to be permitted.

7. Heard the ld. Counsels for the parties. The suit in the present petition relates to the five registered trademarks which are set out above, bearing nos. 3689489, 3689490, 3689491, 3689492 and 3689493. A perusal of the registered trademarks shows that they are in respect of pencils which are in different colour combinations. For quick reference, the marks which are registered are extracted below:

    i) TM Application No. 3689489

    Class: 16

    TM Applied for: DOMS NEON (YELLOW)

    Trade Mark Image:

    ii) TM Application No. 3689490

    Class: 16

    TM Applied for: DOMS NEON (BLUE)

    Trade Mark Image:

    iii) TM Application No. 3689491

    Class: 16

    TM Applied for: DOMS NEON (GREEN)

    Trade Mark Image:

    iv) TM Application No. 3689492

    Class: 16

    TM Applied for: DOMS NEON (ORANGE)

    Trade Mark Image:

    v) TM Application No. 3

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