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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
DFM Foods Ltd. - Appellant
Versus
Ishvi Food Private Limited - Respondent
CS(COMM) 432 of 2021 & I.A. 11736 of 2021, I.A. 11737 of 2021
Decided On : 12-12-2022




The Settlement Agreement resolved trademark infringement claims and imposed binding obligations on the defendants, including the destruction of infringing goods and non-engagement in further violations.

Headnote:(A) Trademark Act, 1999 - The terms of a Settlement Agreement have been acknowledged by both parties, affirming the plaintiff's rights and the defendants' violation thereof by infringing on the trademark. The defendants have undertaken not to engage in further infringements and to destroy infringing goods. (Paras 1-4)

(B) Assignment of rights - The defendants' undertakings are binding on their legal heirs and representatives, establishing enforceability beyond the immediate parties. (Para 1)

Facts of the case:
The dispute was amicably resolved through a Settlement Agreement executed under the auspices of the Delhi High Court Mediation Committee, where the parties recognized the plaintiff as the proprietor of the trademark "CURLS" and defined their obligations.

Findings of Court:
The court decreed the suit in accordance with the terms of the Settlement Agreement, signifying all parties' consent and resolution of the issue.

Issues: The main issues were related to the acknowledgment of trademark rights, obligations of the defendants to cease infringement, and the binding nature of the settlement on third parties.

Ratio Decidendi: The court emphasized the binding nature of the settlement terms and their applicability to the defendants and their successors.

Result: The suit is decreed as per the settlement.

Table of Content
1. settlement terms acknowledge trademark ownership and violations. (Para 1 , 1)
2. counsel agreed to abide by settlement terms. (Para 2)
3. no further adjudication necessary due to settlement. (Para 3)
4. suit decreed as per settlement terms. (Para 4 , 5 , 6)
5. plaintiff entitled to court fee refund if applicable. (Para 7)

JUDGMENT (Oral)

1. The dispute between the parties stands amicably resolved vide Settlement Agreement dated 28th September 2022, executed with the intervention of the Delhi High Court Mediation and Conciliation Centre. The Settlement Agreement has been placed on record. Learned Counsel for the parties are present. The terms of settlement, as per the Settlement Agreement, read thus:

    "i. The Defendant Nos. 1 and 2 acknowledge the Plaintiff to be the proprietor of the trademark "CURLS" as mentioned in paragraph 12 of the Plaint.

    ii. The Defendant Nos. 1 and 2 acknowledge that by stocking, offering for sale, selling or otherwise dealing in products bearing the "CURLS" trademarks of the Plaintiff, the Defendants have violated the trademark rights of the Plaintiff, as also passed off their products as those originating from the Plaintiff.

    iii. The Defendant Nos. 1 and 2 undertake to this Hon'ble Court not to import, offer for sale or supply, sell, supply, advertise, manufacture or cause to be manufactured, or in any way deal in goods bearing the "CURLS" trademark of the Plaintiff in relation to the manufacture, sale, advertising, marketing etc. of its corn based snack product or in relation to any product or any other deceptively similar trademark, so as to result in infringement of the registered trademarks of the Plaintiff and passing off, through any means, including dealing in such products through any store/shop/outlet or through social media platforms like Facebook, WhatsApp, etc/or through ecommerce platforms.

    iv. The Defendant Nos. 1 and 2 further undertake to this Hon'ble Court not to do any other act amounting to passing off of the Defendants' goods as those originating from the Plaintiff.

    v. The Defendant Nos. 1 and 2 also undertake to destroy all infringing goods of any description in their possession within a week from the date of recordal of this compromise on a date and time fixed mutually by both the parties and furnish proof of the same to the Plaintiff.

    vi. In consideration of the abovementioned undertaking by the Defendant Nos. 1 and 2, the Plaintiff foregoes its claim for delivery up, rendition of accounts, damages and costs under paragraph 43 (d)-(g) of the Plaint.

    vii. The undertakings given herein shall also be binding on all the legal heirs, representatives and assigns-in-business of the Defendant Nos. 1 and 2 herein. A breach of these undertakings shall automatically entitle the Plaintiff to claim for the damages prayed for in the suit."

2. Learned Counsel for the parties agreed on behalf of their respective clients to remain bound by the terms of settlement.

3. In view thereof, nothing survives for adjudication in the present suit.

4. The suit is, therefore, decreed and in terms of prayer clauses (A) to (C) in para 43 of the plaint read with the aforesaid Settlement Agreement dated 28th September 2022, which shall be treated as a part of this order.

5. Parties shall remain bound by the terms of settlement.

6. The Registry is directed draw up a decree sheet accordingly.

7. The plaintiff shall also be entitled to refund of the Court fee, if any, deposited by it.

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