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2025 Supreme(Del) 226

IN THE HIGH COURT OF DELHI AT NEW DELHI
Saurabh Banerjee, J.
 
Belle Wears Private Limited - Plaintiff
Versus
Hobby Garments Private Limited - Defendant
CS(COMM) 329 of 2024
Decided On : 01-04-2025

Advocates Appeared:
For the Plaintiff : Mr. Umesh Mishra and Ms. Yashodhara Raina, Advs.
For the Defendant : Mr. Rishub Kapoor, Adv.

The court upheld a consent decree based on a lawful settlement between parties regarding trademark and copyright rights, allowing for a refund of court fees.

Headnote:

(A) Code of Civil Procedure, 1908 - Order XXIII Rule 3 - Consent decree - Joint application for consent decree based on settlement terms between parties regarding trademark and copyright issues - Defendant acknowledges plaintiff's rights and agrees to refrain from infringing actions - Court finds settlement lawful and decrees suit accordingly. (Paras 1, 4, 10)

(B) Court Fees Act, 1870 - Section 16 - Refund of court fees - Court grants 75% refund of court fees paid by plaintiff due to amicable settlement. (Paras 7, 9)

Facts of the case:
The parties entered into a settlement regarding trademark and copyright rights over the mark 'TEENAGER', with the defendant acknowledging the plaintiff's rights and agreeing to refrain from infringing actions. (Para 1)

Findings of Court:
The court finds the terms of the settlement lawful and decrees the suit in accordance with the settlement. (Para 4)

Issues: The main issue was whether the terms of the settlement were lawful and could be decreed by the court. (Para 4)

Ratio Decidendi: The court held that the terms of the settlement were lawful and binding, allowing for a decree based on the agreed terms. (Para 4)

Result: The present suit is decreed in terms of the settlement as recorded hereinabove.

ORDER :

I.A. 8428/2025 (Application filed under Order XXIII Rule 3 read with Section 151 of the CPC)

1. This is a joint application under Order XXIII Rule 3 of the Code of the Civil Procedure, 1908 (CPC) filed on behalf of the plaintiff and the defendant seeking a consent decree based on the terms of settlement as mentioned in para 3 of the present application, which is reproduced as under:-

“3. The following settlement has been arrived at between the parties hereto:-

a) That the defendant admit and acknowledge that the plaintiff is the original adopter/registered proprietor of the trademark/ Trade dress/ artistic work “TEENAGERand other formative marks/label as mentioned/ referred in para 4 of the plaint in CS (Comm) No. 329/2024 for the goods falling under various Classes as mentioned in the plaint.

b) That the defendant also admit and acknowledge the plaintiffs copyright in the artistic features of the packaging/ labels as mentioned/referred in para 6 of the plaint including their distinctive scripts, positions and placing of features, their respective get ups, lay outs, combination of colours and arrangements of general and descriptive materials in respect of above said goods.

c) The defendant also admit and acknowledge that the plaintiff is prior user of the trademark/label “TEENAGER/ ” bearing the copyright/artistic work for the goods falling in class 25&26.

d) That the defendant shall not have any objection with respect to the registration of the said trademarks/ copyrights as well as pending trademark and copyright applications of the plaintiffs in any manner whatsoever.

e). The defendant also undertake not to commit any act of infringement and/ or passing off by the use of the trademark/ label/ artistic work TEENAGER/ with any suffix or prefix and/or any other mark/name which is identical and/or deceptively similar to the plaintiff’s registered trademark/ copyright.

f) The defendant undertakes not to use the scripts, positions and placement of any features, get ups, lay outs, combination of colours and arrangement as are or is identical or deceptively similar to the features, get ups, layouts, positions and placement or combination of colours of the plaintiff’s pouches/packaging material in respect of and in relation to the products falling in Class 25 & 26.

(g). That defendant undertake that no other application is pending before the Registrar of Trade Marks or any other authority filed by them bearing the trademark/label “TEENAGER/ ” with any suffix or prefix and even in future also the defendants shall not file any such application for the registration which may be similar or identical to the plaintiff trademark/ label/ artistic work/ trade dress without first consulting with Plaintiff.

(h) The defendant undertake to recall the marketing, promotional and advertising materials, if any, that bear or incorporate the mark TEENAGER and the infringing packaging materials within, whenever it is brought to the attention of the defendant.

(i) That the defendant do not have any packaging and any other material bearing the impugned mark or infringing trade dress or copyright. The defendant further undertakes that they will destroy all the impugned packaging, bearing the impugned mark or infringing trade dress or copyright within Thirty days from the date of the execution of the present Settlement Agreement.

(k) The defendant further undertakes to remove impugned mark/packaging/goods from the e-commerce website/social media/online portals, if any, within two weeks from signing of this settlement agreement.

(l) The above-mentioned undertakings have been given by both the parties on their own free will/consent and without any coercion and the same shall be binding on them as well as on their proprietor, partners, CEO, directors, legal heirs/assignee in business, distributors, dealers, stockiest, servants and agents/representatives for all times to come.

(m) The defendant has no objection if a decree of perpetual injunction is passed by this

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