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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Ahuja Radios - Appellant
Versus
Neeraj Goel - Respondent
CS (COMM) 92 of 2021 & I.As. 2727 of 2021, 2729 of 2021
Decided On : 26-05-2022




Trademark holders have the right to enforce their registered trademarks against infringement, and agreements not to use infringing marks can lead to amicable resolutions and decrees.

Headnote:(A) Trademark Act, 1999 - Sections on trademark infringement and passing off - Permanent injunction granted to Plaintiff seeking to restrain Defendant from using the trademark 'AHUJA' - Plaintiff is the registered trademark holder since 1948 and market leader in audio equipment. (Para 12)

(B) Injunction - The Defendant agreed not to use the trademark 'AHUJA' and to hand over all infringing goods - Plaintiff entitled to nominal costs for amicable resolution - Court satisfied with the undertaking provided by the Defendant. (Paras 10, 11, 13)

Facts of the case:
Plaintiff, Ahuja Radios, filed suit against Defendant for infringing upon its long-standing trademark 'AHUJA', claiming a significant loss of market due to Defendant's actions selling similar products at a lower price.

Findings of Court:
The Defendant's undertaking to refrain from using the trademark and to return infringing goods was accepted, leading to a decree in favor of the Plaintiff.

Issues: Whether the Defendant's actions constituted infringement and if the provided undertaking warranted a decree.

Ratio Decidendi: The court held the Plaintiff's statutory rights to the trademark should be protected, and the amicable agreement reached between the parties necessitated a decree.

Result: Suit decreed in favor of Plaintiff.

JUDGMENT

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

2. The present suit has been filed by the Plaintiff seeking permanent injunction restraining infringement of trademark, copyright, passing off, dilution, damages and other reliefs in respect of its trademark `AHUJA' which was adopted in 1940 in respect of Public Address Systems and Audio Equipment. The Plaintiff-Ahuja Radios is a market leader and the largest manufacturer of such equipment. It is engaged in the development, manufacturing, marketing and export of amplifiers, mixers, microphones and speakers and other audio equipment under the mark `AHUJA'. It is stated to have a dealer network consisting of 400 dealers selling its products, which are being exported to more than 50 countries across 5 continents. The Plaintiff has a large clientele including various government establishments and private establishments, airports, embassies, colleges, universities, cinema halls, auditorium etc. The Plaintiff has received various awards for its PA & Audio Systems.

3. The mark `AHUJA' is also a registered trademark since 6th November, 1948. The details of the registrations of the Plaintiff are as under:

S. No.TrademarkReg. No.DateClass of Goods
1.AHUJA (word per se)1361896.11.1948[CLASS 9]: Amplifiers, transformers and parts thereof not included in other classes
2. (Device)3137576.4.1976[Class 9]: Amplifiers (sound), microphones, radio receiving apparatus for reproducing sounds, tape recorders, electric battery chargers, pick-ups and electrograph, microphone stands, loudspeakers and horns all including in class 9

4. The Plaintiff's mark `AHUJA' is also registered in more than 20 countries in the world including Sri Lanka, Thailand, Indonesia, Jordan, South Africa, Greece, Singapore, Turkey, Saudi Arabia, UAE, United Kingdom and China. The Plaintiff's sales turnover for the year 2018-19 was approximately Rs.750 crores.

5. The Plaintiff is aggrieved by the Defendant's adoption of the mark `AHUJA'. The Defendant-M/s Young Electronics N.R. Wala Serial No 51, Shop Number. 40/313, Diwan Hall Road, Chandni Chowk, is a sole proprietorship concern of Mr. Neeraj Goel. The Plaintiff acquired knowledge that in January, 2021 the Defendant had adopted the mark `AHUJA' and was selling sound equipment systems under the mark AHUJA. The price of the Defendant's products was roughly 50% of the genuine price of the Plaintiff's products. The present suit was, therefore, filed seeking injunctions and other reliefs.

6. Vide order dated 22nd February, 2021, this Court had granted an ex parte injunction restraining the Defendant from using the mark `AHUJA' or the device of AHUJA. The operative portion of the said order reads as under:

    "7. The defendant, his principal officers, partners, servants, representatives, agents, distributors and any other persons acting for and on behalf of the defendant are hereby restrained from dealing in any goods under the trade mark AHUJA and/or AHUJA DEVICE or any other trade mark/device/logo deceptively similar to the Plaintiff's trade mark, device or doing any other act as is likely to lead to infringement of registered trade mark nos. 136189 and 313757 in class 9, and passing off its infringing goods as those originating from the plaintiff till the next date of hearing."

7. Vide the above order dated 22nd February, 2021, a Local Commissioner was also appointed, who visited the premises of the Defendant and had prepared an inventory of approximately 16 devices bearing the mark `AHUJA'. The photographs of the products also show that the mark `AHUJA' was contained in the said packaging as well on the products themselves. The said products are lying under superdarinama with the Defendant.

8. After receiving the summons and the commission being executed, an affidavit dated 10th November, 2021, has been filed by Mr. Neeraj Goel, as per which the deponent has stated as under:

    "1. That, the deponent submits that the deponent is the

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