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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Hero Electric Vehicles Private Limited - Appellant
Versus
Guddu Ansari - Respondent
CS (COMM) 598 of 2021 & I.A. 15337 of 2021
Decided On : 21-04-2022




Trademark infringement and passing off occur when an identical domain is used to mislead consumers, justifying a permanent injunction and exemplary damages.

Headnote:(A) Trade Marks Act, 1999 - Sections 29 and 135 - Commercial Courts Act, 2015 - Permanent injunction - Plaintiff filed suit against Defendant for trademark infringement and passing off due to the use of an identical domain name, collecting funds from unsuspecting consumers - The Plaintiffs established a prima facie case and balance of convenience in their favor, causing irreparable harm if injunction not granted. (Paras 14, 15, and 19)

(B) Domain Name Disputes - The use of an almost identical domain name by Defendants to the Plaintiffs' established mark constitutes trademark infringement and passing off, misleading consumers regarding affiliation. (Paras 5 and 11)

Facts of the case:
The Plaintiff, a manufacturer and seller of electric vehicles, claims that the Defendants adopted a similar domain name and are soliciting dealership inquiries, duping customers into believing an association with the Plaintiffs. Despite summons, Defendants failed to appear, resulting in a suit for injunction and damages.

Findings of Court:
The Court found evidence of the Defendants' intent to mislead and the collection of substantial sums from innocent consumers. Exemplary damages of Rs.50 lakhs and litigation costs of Rs.3 lakhs were awarded.

Issues: Whether the Plaintiffs established a prima facie case for trademark infringement and whether the Defendants' actions constituted passing off.

Ratio Decidendi: The court emphasized the necessity of protecting registered trademarks and the rights of the Plaintiffs, noting that the intentional duplication amounted to fraudulent activity, warranting severe penalties.

Result: Suit decreed in favor of the Plaintiffs.

Table of Content
1. plaintiffs' claim and trademark background (Para 2 , 4 , 5)
2. court's analysis of infringement (Para 3 , 7 , 11 , 12)
3. plaintiffs' concerns over defendants' actions (Para 6)
4. principles for awarding damages (Para 8 , 15)
5. final orders and directions by the court (Para 14 , 16 , 17 , 18 , 20)

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The Plaintiffs -Hero Electric Vehicles Private Limited and M/s. V.R. Holdings have filed the present suit against four entities: Defendant Nos.1 & 2 being Mr. Guddu Ansari and M/s. Hero Electro. Defendant No.3 is GoDaddy.com (hereinafter "GoDaddy"), LLC and Defendant No.4 is Yes Bank Limited (hereinafter "Yes Bank").

3. Summons were issued in this matter vide order dated 25th November, 2021, and the Defendants were served through email as recorded in the previous order dated 7th April, 2022. However, none has appeared in this matter for Defendant Nos.1&2, even today. Accordingly, the Court proceeds further.

4. The case of the Plaintiffs is that they are engaged in the manufacture and sale of electric vehicles under the trademark `HERO ELECTRIC'. Plaintiff No.2 is a partnership firm, part of the Plaintiff group of companies. The Plaintiffs are known by the name "Hero Group". Broadly, the Plaintiffs are companies engaged in the automobile sector, and manufacturing of bicycles and components, financial and other services etc. The Plaintiffs were the first to launch electric cycles and scooters in India under the brand "Hero Electric". The Plaintiffs' case is that the Hero Group is present in more than 50 countries of the world and they have invested large amounts of money in the production of eco-friendly vehicles as also electric vehicles. The name `HERO', `HERO ELECTRIC' and various variants of the same are registered in Class 12, registered between 2008 and 2020. The HERO formative marks are also used on the various websites of the Plaintiffs including www.heroelectric.in, which was registered in the name of the Hero Group in December, 2006. The mark `HERO' has acquired enormous goodwill and reputation and though being a dictionary word, it is today -in the automobile industry -distinctive of the Plaintiffs and its products/services. The sales figures of the Plaintiffs under the trademark `HERO ELECTRIC' are more than 315 crores in the year 2021 and the advertisement figures are to the tune of Rs.24 crores. The Plaintiffs have launched e-bikes, e-scooters and other electric vehicles under the mark `HERO ELECTRIC', which have also been accorded with various awards in the mobility industry. The mark `HERO ELECTRIC' is thus claimed to be distinctive and well-reputed.

5. The grievance of the Plaintiff in the present suit is that around October, 2021, it came to know that Defendant Nos.1 & 2 have started operating the domain name www.heroelectro.in, in which they were soliciting dealership enquiries for sale of HERO electric vehicles. The Defendants also claimed to be providing services of getting lease land of third parties in return of an application fee for setting up charging infrastructure. The said domain name of www.heroelectro.in, was registered through GoDaddy and the bank account of Defendant Nos.1 & 2 was opened with Yes Bank. On the portal of Defendant Nos.1 & 2, the content of the Plaintiffs' website was replicated. The present suit has thereafter been filed seeking injunction in view of the fact that Defendant Nos.1 & 2, are duping several innocent persons and offering dealerships with an intention to swindle large sums of money.

6. Mr. Aayushmaan Gauba, ld. Counsel appearing for the Plaintiffs, submits that Defendant Nos.1 & 2 despite service are not appearing in the matter. He submits that a perusal of the bank statement filed by Yes Bank along with the affidavit dated 5th April, 2022, shows that there are more than 60 credit transactions in the Defendants' bank account, totalling to a sum of more than Rs.

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