IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Shivan Ramachandran - Appellant
Versus
Madhur Sharma - Respondent
CS(COMM) 367 of 2022 & I.A. 8591 of 2022, 8592 of 2022
Decided On : 21-07-2022
| Table of Content |
|---|
| 1. defendant's undertaking to withdraw trademark and domain names. (Para 1 , 2) |
| 2. affidavit detailing sales and stocks submitted by the defendant. (Para 3 , 4) |
| 3. plaintiffs waive claim for damages due to nominal sales. (Para 5) |
| 4. court decrees suit in favor of plaintiffs. (Para 6) |
| 5. refund of court fees and decree implementation. (Para 7 , 8 , 9 , 10) |
JUDGMENT
Jyoti Singh, J. (Oral)
1. On 27.05.2022, learned counsel who entered appearance on behalf of the Defendant had, on instructions, submitted that the Defendant shall withdraw the trademark applications before the Registrar of Trade Marks being TM Nos. 4577410 and 5384540 and shall also withdraw the domain name http://samudrawire.com from the various social media platforms such as Facebook, Instagram etc.
2. Learned counsel had also undertaken that no further sale of the impugned products under the impugned trademark will be carried out by the Defendant. The undertaking as well as the statement made were taken on record.
3. At request of learned counsel for the Plaintiffs, Defendant was directed to file an affidavit indicating the existing stocks, details of the sales from May, 2020 till 27.05.2022 with sales figure, certified by the Chartered Accountant.
4. The same has been filed along with the certificate of the Chartered Accountant.
5. Learned counsel for the Plaintiffs after perusing the affidavit and the Chartered Accountant's certificate fairly and candidly, on instructions, submits that the sales are very nominal and therefore, he has instructions not to press the claim for damages.
6. Accordingly, in view of the statement made by the Defendant and averments in the plaint, the suit is decreed in favour of the Plaintiffs and against the Defendant in terms of prayer 40 (a), (b) and (c) of the plaint.
7. In view of the aforesaid, Plaintiffs are entitled to refund of the entire Court Fees deposited by them, in accordance with provisions of Section 16 of the Court Fees Act, 1870 read with Section 89 CPC, 1908.
8. Registry is directed to refund the Court Fees deposited by the Plaintiffs.
9. Registry is directed to draw up the decree sheet.
10. Suit along with pending applications stands disposed of.
The court upheld the Defendant's commitment to withdraw contested trademarks, ruling that nominal sales negate the need for damages, granting a decree in favor of the Plaintiffs.
The court decreed the suit in favor of the plaintiff based on the defendant's agreement to cease using the impugned marks, rendering the dispute moot.
Amicable settlements in trademark disputes are encouraged, binding parties to terms agreed upon to reduce litigation and facilitate cooperation.
The court has the authority to examine and decree a suit based on the terms of settlement between the parties under Order XXIII Rule 3 of the CPC.
Enforceability of settlement agreements and their impact on the resolution of disputes.
Enforceability of settlement agreement under Order XXIII Rule 3 of the CPC.
Court emphasizes the significance of written undertakings in trademark disputes and validates the necessity of compliance with contractual agreements before issuance of licenses.
A court may dispose of a civil suit in terms of a lawful settlement agreement arrived at between the parties under Order XXIII Rule 3 of the Code of Civil Procedure, 1908, binding successors and assi....
The court recognized the importance of mutual agreements in patent disputes, allowing for a settlement based on the concession of parties, focusing on nominal costs rather than damages.
Trademark acknowledgment and the avoidance of misuse are crucial in trademark disputes; costs for unnecessary litigation may be imposed to deter vexatious claims.
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