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IN THE HIGH COURT OF DELHI
Vibhu Bakhru, Amit Mahajan, JJ.
Maan Pharmaceuticals Ltd. - Appellant
Versus
Mindwave Healthcare Pvt. Ltd. - Respondent
FAO(COMM) 78 of 2022
Decided On : 12-09-2022




The territorial jurisdiction for trademark infringement suits is based on where the plaintiff conducts business, and genuine apprehension of infringement constitutes valid cause of action.

Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rules 10 and 11 - Trade Marks Act, 1999 - Section 134 - Infringement of trademark - Jurisdiction of court to entertain suit - Plaintiff claimed to be registered owner of trademark and alleged unauthorized use by the defendant - Trial Court found jurisdiction based on business activities of plaintiff within the court's territorial limits - Dismissed defendant's application citing lack of jurisdiction. (Paras 2, 6, 10, 21)

(B) Legal principles regarding jurisdiction - Territorial jurisdiction in trademark infringement suits is determined by where the plaintiff carries on business - Even a subordinate office can confer jurisdiction if the cause of action arises in that location. (Paras 4, 11, 13, 19)

(C) Cause of action based on apprehension - Action quia timet allows for injunctions based on genuine apprehension of infringement even if actual infringement has not occurred. (Paras 29, 30)

(D) Non-filing of Legal Proceedings Certificate - Trial Court held that failure to file this document does not bar the plaintiff from seeking injunction if other requisite elements are present. (Paras 34, 39)

Facts of the case:
The appellant challenged the rejection of its application on jurisdiction grounds regarding trademark infringement by the respondent, which claimed to carry on business from a sales office within the jurisdiction of the court.

Findings of Court:
The court upheld the Trial Court's finding that jurisdiction was established based on the plaintiff's business operations within the court's territorial limits and the apprehension of trademark infringement.

Issues: Central issues included the jurisdiction of the court based on operational presence and whether apprehended infringement constituted a valid cause of action.

Ratio Decidendi: The court ruled that the jurisdiction is based on where the plaintiff conducts business; a reasonable apprehension of imminent infringement is sufficient for maintaining a suit for injunction against such infringement.

Result: Appeal dismissed.

Table of Content
1. appellant aggrieved by dismissal of application. (Para 1 , 2)
2. jurisdiction based on trademark ownership and business location. (Para 3 , 4)
3. lack of jurisdiction challenge on grounds of office location. (Para 5 , 25 , 34)
4. trial court's decision and findings. (Para 6 , 8 , 9)
5. trial court's dismissal of application on jurisdiction. (Para 7)
6. territorial jurisdiction governs trademark infringement suits. (Para 10 , 12 , 14 , 16)
7. legal framework for jurisdiction assessment. (Para 11 , 18 , 27)
8. cause of action must be established within jurisdiction. (Para 13 , 19 , 22)
9. quia timet principles: apprehension as cause for action. (Para 15 , 20 , 29)
10. rejection of procedural objections does not bar the suit. (Para 28 , 35 , 39)
11. recognition of quia timet actions for trademark infringement. (Para 30 , 31)
12. merit of apprehension in trademark infringement lawsuits. (Para 32 , 33)
13. non-filing of legal documents does not negate injunction rights. (Para 38)
14. appeal dismissed; trial court's order upheld. (Para 40)

JUDGMENT

Amit Mahajan, J.

1. The appellant (hereinafter `MAAN') has filed the present appeal, aggrieved by an order dated 07.12.2021 (hereinafter `the impugned order') passed by the learned District Judge (Commercial Court-02), Saket Courts - South District, New Delhi (hereinafter `the learned Trial Court'), whereby the application filed by the appellant (defendant) under Order VII Rules 10 and 11 of Code of Civil Procedure, 1908 (hereinafter `the CPC'), was dismissed.

2. The respondent, M/s Mindwave Healthcare Pvt. Ltd. (hereinafter `MINDWAVE'), filed a suit against MAAN, inter alia, seeking permanent injunction restraining MAAN from using the trademark "BUPROEX-N". MINDWAVE claims to be the registered owner of the said trademark and it alleged unauthorized use of the said trademark by MAAN.

3. MINDWAVE, for the purpose of territorial jurisdiction of the learned Trial Court at Saket, pleaded as under:

    "19. That this Hon'ble Court has jurisdiction to entertain the present suit arising out of the suit for infringement as Plaintiff is registered owner of the Trademark and Plaintiff is carrying on the business from the place within the territorial jurisdiction of this Hon'ble Court having principle office for sale, distribution &control within the territorial jurisdiction of this Hon'ble Court. Defendant is all set to launch the product under impugned trademark BUPROEX within the territorial jurisdiction of this court and in fact, is negotiating various traders within the jurisdiction of this Hon'ble Court as a direct challenge to Plaintiff. The threat perceived by Plaintiff is also extended to the place within the territorial jurisdiction of this court. In the case of registered trademark section 134 of the Trademark Act. 1999, specifically confers the jurisdiction at the place where Plaintiff resides and carries on their business. Hence the Hon'ble Court has the jurisdiction to entertain and try the instant suit as the present suit is for infringement of the registered trademark of Plaintiff."

(emphasis supplied)

4. However, MAAN took a preliminary objection and filed an application under Order VII, Rules 10 and 11 read with Section 151 of the CPC seeking return of the plaint due to lack of territorial jurisdiction and the alleged non-compliance by MINDWAVE, in terms of the directions/guidelines prescribed by this Court in the case of Amrish Aggarwal v. M/s Venus Home Appliances Pvt. Ltd., 2019 SCC OnLine Del 9966. MAAN pleaded that MINDWAVE only has a sales office within the territorial jurisdiction of the learned Trial Court at Saket and the registered office of MINDWAVE is located in Mangol Puri Industrial area, which is outside the territorial jurisdiction of the learned Trial Court at Saket.

5. MAAN contended that even though the registered office of MINDWAVE has now been shifted to Neb Sarai, which is within the territorial jurisdiction of the learned Trial Court at Saket, h

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