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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Anubhav Jain - Appellant
Versus
Satish Kumar Jain - Respondent
C.O. (COMM.IPD-TM) 55 of 2021
Decided On : 09-01-2023




The right to cancel a trademark under Section 57 of the Trade Marks Act is independent of ongoing infringement suits and remains available for invocation regardless of related Section 124 implications.

Headnote:(A) Trademarks Act, 1999 - Sections 57 and 124 - Cancellation of registration of trademark - Petition by director of company for cancellation of respondent's trademark registration due to alleged infringement and maintainability under Section 124 - Court found that the independent right under Section 57 for rectification remains available despite infringement suit - Preliminary objection regarding maintainability of present suit rejected. (Paras 1, 19, 30)

(B) The right to seek cancellation and rectification under Section 57 and Clause (ii) of Section 124 of the Trade Marks Act are independent rights available for invocation. (Para 30)

Facts of the case:
The petitioner sought cancellation of a registered trademark by the respondent, alleging infringement under the Trademarks Act. The respondent contended that the suit was not maintainable due to Section 124 implications, which was closely tied to a pending infringement suit.

Findings of Court:
The court concluded that despite a pending infringement suit, the petitioner retains the right to independently invoke Section 57 for trademark cancellation and rectification.

Issues: The major issues were the applicability of Section 124 regarding maintainability and the independent rights under the Trademarks Act.

Ratio Decidendi: The court ruled that the independent right under Section 57 for cancellation of trademark exists irrespective of the infringement suit pending, rejecting the respondent's maintainability argument under Section 124.

Result: Preliminary objection rejected.

Table of Content
1. challenge to trademark registration. (Para 1)
2. preliminary objection to maintainability. (Para 2 , 7 , 8)
3. issues regarding invalidity pleadings. (Para 3 , 10 , 11)
4. ongoing legal proceedings context. (Para 4 , 5 , 6)
5. right to rectification and independence of actions. (Para 12 , 19 , 20 , 21)
6. interpretation of rights under sections 57 and 124. (Para 24 , 26 , 30)
7. rejection of preliminary objection. (Para 31 , 32 , 33)

JUDGMENT

C. Hari Shankar, J. (Oral)

1. This petition has been preferred by Anubhav Jain, one of the Directors in M/s. Jain Shikanji Private Limited ("JSPL", hereinafter) under Sections 571 and 1252 of the Trademarks Act, 1999 ("the Act", hereinafter), seeking cancellation of Certificate No. 2772286 dated 18th June 2021, whereby the device mark was permitted to be registered in favour of Respondent 1. Consequently, rectification of the register of the trademarks, by removing, therefrom, the said registered trademark of Respondent 1 has also been sought.

2. Respondent 1 raised a preliminary objection to the maintainability of the present suit, predicated on Section 124 of the Trademarks Act. By order dated 5th September 2022, this Court directed that the said objection would be taken up and decided in the first instance.

3. I have heard Mr. Gaurav Barathi, learned Counsel for Respondent 1 and Ms. Kangan Roda, learned Counsel for petitioner at length, on the said objection as raised by Respondent 1 and proceed to decide the objection by this order.

4. The circumstances in which the aforesaid objection has been raised by Respondent 1, have, in the first instance, to be noted. On 23rd September 2021, Respondent 1 filed CS (Comm) 171/2021 against the petitioner before the learned Commercial Court, Karkardooma ("the learned Trial Court", hereinafter), alleging that the manner in which the petitioner was using the mark "JAIN SHIKANJI" was same as plaintiff's registerered mark "JAIN SHIKANJI". An application under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (CPC), seeking interlocutary injunction was also filed by Respondent 1 in the said suit.

5. By order dated 5th November 2022, the learned Trial Court allowed Respondent 1's application under Order XXXIX Rules 1 and 2 of the CPC and passed an interlocutary order of injunction against the petitioner. The petitioner has challenged the said decision by way of FAO (Comm)185/2022, which is presently pending before a Division Bench of this Court. Admittedly, no interlocutory orders have been passed in the said appeal, till date.

6. While proceedings emanating from CS (Comm) 171/2022 stood thus, the petitioner instituted the present petition before this Court under Section 57 of the TradeMarks Act, seeking, as already noted, cancellation of the registration granted to the trademark of Respondent 1 and consequent rectification of the trade mark register.

7. Mr. Barathi, learned Counsel for Respondent 1 contests the maintainability of the present petition, relying for the said purpose, on Section 124 of the Trademarks Act.

8. Section 124 of the Trademarks Act sets out a specific scheme. Plainly read, it applies only where there is, to begin with, a suit, alleging infringement of trademark, pending before a Civil Court. Mr. Barathi submits that CS (Comm) 171/2021 is the suit, instituted by Respondent 1 against the petitioner, on the basis of which he invokes Section 124.

9. Section 124 proceeds to envisage two situations, under clauses (a) and (b) of sub-section 1 thereof. Of these, Mr. Barathi concedes that Clause (b) does not apply.

10. Clause (a) of Section 124(1) applies where, in a suit for infringement of a trademark, the defendant pleads that registration of the plaintiff's trade mark is invalid. In CS (Comm) 171/2021, JSPL is the defendant and Respondent 1 is the plaintiff.

11. In order for Section 124(1)(a) would apply, therefore, it would be necessary for JSPL, as the defendant in CS (Comm) 171/20

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