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IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Nexthermal Corporation - Appellant
Versus
Chetan Dhiman - Respondent
CS(COMM) 151 of 2022 & I.A. 3739 of 2022
Decided On : 17-11-2022




The court found that an ex parte judgment can be granted under Order VIII Rule 10 CPC if the defendant fails to respond, ensuring that the plaintiffs' rights under their registered trademarks are upheld against infringement.

Headnote:(A) Trade Marks Act, 1999 - Section 29(2) - Permanent injunction sought for trademark infringement and passing off against the Defendant who operated under an infringing mark and logo similar to that of the Plaintiffs. The court highlighted the significance of protecting registered trademarks and the grounds for issuing an ex parte judgment when the Defendant fails to appear. Court determined that the Defendant's actions constituted infringement and passing off as they were using a mark that was visually and phonetically similar to the Plaintiffs' registered trademarks. (Paras 18, 22, 24)

(B) Judgment under Order VIII Rule 10 CPC - The legislative intent is to expedite trial proceedings, and the court may grant judgment when the Defendant fails to file a written statement and does not appear. The court must determine if the plaint's facts are undisputed and can be proven without further evidence. (Paras 3, 4)

Facts of the case:
Plaintiffs seek injunction for trademark infringement against Defendant's usage of 'Nextherm Heat and Mold Tech' which was claimed to be deceptively similar to the Plaintiff’s registered mark 'Nexthermal'. Plaintiffs shared their extensive history, goodwill, and previous legal actions against infringements. (Paras 2-12)

Findings of Court:
The court ruled in favor of the Plaintiffs due to the Defendant's failure to respond and the substantial similarity between the disputed marks indicating a likelihood of consumer confusion, thereby granting a permanent injunction. (Paras 24, 26)

Issues: The issues addressed included the similarity between the marks, the Defendant's unfair competition, and the satisfaction of conditions for passing off. (Paras 22, 24)

Ratio Decidendi: The court affirmed principles from past judgments regarding the factors to be evaluated for trademark infringement and established that the Defendant’s mark was likely to deceive consumers. (Paras 19, 20, 24)

Result: Suit decreed in favor of the Plaintiffs with costs awarded. (Paras 26, 30)

Table of Content
1. plaintiffs claim trademark infringement. (Para 2 , 13)
2. arguments for expedited judgment due to non-filing. (Para 4 , 5 , 14 , 15)
3. court's analysis on trademark usage and infringement. (Para 6 , 16 , 17 , 18 , 19 , 20)
4. comparison of trademark similarities. (Para 21)
5. final ruling on the case with injunction granted. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30)

JUDGMENT

Jyoti Singh, J. (ORAL)

I.A. 18774/2022 (under Order VIII Rule 10 and Order IX Rules 6 and 11 CPC, by Plaintiffs)

1. This application has been filed under Order VIII Rule 10 read with Order IX Rules 6 and 11 CPC.

2. Present suit has been filed for permanent injunction restraining infringement of Plaintiffs' trademark, passing off, dilution of goodwill, damages etc. against the Defendant.

3. Vide order dated 08.03.2022 this Court granted ex parte ad interim injunction restraining the Defendant from using the infringing marks in any manner whatsoever and directed compliance of Order XXXIX Rule 3 CPC within two weeks. Defendant was duly served by various modes on 16.03.2022, including by way of an e-mail on 15.03.2022. On 02.05.2022 Defendant was proceeded ex parte as neither the Defendant appeared nor written statement was filed within the statutory period. Since the period of 90 days beyond the initial period of 30 days for filing the written statement expired on 13.07.2022, present application has been filed under Order VIII Rule 10 CPC for pronouncement of judgment.

4. The first and foremost contention on behalf of the Plaintiffs is that in view of the Defendant being proceeded ex parte and the statutory period for filing written statement having expired, Court should invoke provisions of Order VIII Rule 10 CPC to decree the suit. I find merit in the contention. The intention of the Legislature in inserting Order VIII Rule 10 CPC is to expedite the process of trial. In this context, I may refer to the judgment of this Court in CS(OS) 873/2015, Samsung Electronics Ltd. vs. Mohammed Zaheer Trading As M/s. Gujarat Mobiles & Ors., relevant para of which is as follows:

    "10. The Supreme Court in C.N. Ramappa Gowda Vs. C.C. Chandregowda, (2012) 5 SCC 265 has interpreted the Order VIII Rule 10 CPC as under:

    "25. We find sufficient assistance from the apt observations of this Court extracted hereinabove which has held that the effect [Ed.: It would seem that it is the purpose of the procedure contemplated under Order 8 Rule 10 CPC upon non-filing of the written statement to expedite the trial and not penalise the defendant.] of non- filing of the written statement and proceeding to try the suit is clearly to expedite the disposal of the suit and is not penal in nature wherein the defendant has to be penalised for non-filing of the written statement by trying the suit in a mechanical manner by passing a decree. We wish to reiterate that in a case where written statement has not been filed, the court should be a little more cautious in proceeding under Order 8 Rule 10 CPC and before passing a judgment, it must ensure that even if the facts set out in the plaint are treated to have been admitted, a judgment and decree could not possibly be passed without requiring him to prove the facts pleaded in the plaint.

    26. It is only when the court for recorded reasons is fully satisfied that there is no fact which needs to be proved at the instance of the plaintiff in view of the deemed admission by the defendant, the court can conveniently pass a judgment and decree against the defendant who has not filed the written statement. But, if the plaint itself indicates that there are disputed questions of fact involved in the case arising from the plaint itself giving rise to two versions, it would not be safe for the court to record an ex parte judgment without directing the plaintiff to prove the facts so as to settle the factual controversy. In that event, the ex parte judgment although may appear to have decided the suit expeditiously, it ultimately gives







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