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2025 Supreme(Del) 288

IN THE HIGH COURT OF DELHI AT NEW DELHI
AMIT BANSAL, J.
Gensol Electric Vehicles Pvt. Ltd. - Plaintiff
Versus
Mahindra Last Mile Mobility Limited - Defendant
I.A. 40846 of 2024 IN CS(COMM) 849 of 2024
Decided on : 13-01-2025

Advocates Appeared:
For the Plaintiff :Mr. Chander M. Lall, Sr. Advocate with Ms. Swapnil Gaur, Ms. Annanya Mehan, Mr. Abhinav, Advocates.
For the Defendant :Mr. Rajiv Nayar, Sr. Advocate and Mr. Akhil Sibal, Sr. Advocate with Mr. Ankur Sangal, Ms. Smriti Yadav, Ms. Sucheta Roy, Ms. Amrit Sharma, Ms. Ridhie Bajaj and Ms. Sarah Haque, Advocates.

The court ruled that the plaintiff failed to establish a prima facie case for trademark infringement due to the distinctiveness of the defendant's modified mark and the plaintiff's lack of market presence.

Headnote:

(A) Code of Civil Procedure, 1908 - Order XXXIX Rules 1 and 2 - Permanent injunction sought for trademark infringement - Plaintiff's mark 'EZIO' registered, while defendant's mark 'eZEO' modified to 'MAHINDRA ZEO' - Court finds no likelihood of confusion due to distinctiveness of marks and absence of plaintiff's market presence. (Paras 11, 12, 40, 41)

(B) Trademark Law - Likelihood of confusion - Court emphasizes that the consumer's sophistication and the nature of goods are critical in assessing confusion - The plaintiff has not established goodwill or market presence for its mark. (Paras 22, 33, 40)

Facts of the case:
The plaintiff filed for an interim injunction against the defendant for using a similar mark 'eZEO' for its electric vehicle, claiming potential market confusion. The plaintiff's vehicle is yet to launch, while the defendant has an established market presence. (Paras 2, 6.1, 7.1)

Findings of Court:
The court found that the defendant's modification of its mark to 'MAHINDRA ZEO' sufficiently distinguishes it from the plaintiff's mark, negating the likelihood of confusion. (Paras 20, 41)

Issues: The main issues were whether the defendant's use of 'eZEO' infringed upon the plaintiff's trademark 'EZIO' and the likelihood of consumer confusion. (Paras 11, 40)

Ratio Decidendi: The court ruled that the plaintiff failed to demonstrate a prima facie case for an injunction, as the defendant's mark was not identical and the plaintiff had no established market presence. (Paras 40, 41)

Result: Application for interim injunction dismissed.

Table of Content
1. plaintiff seeks injunction (Para 1 , 2)
2. plaintiff's case details (Para 6)
3. defendant's case details (Para 7)
4. plaintiff's submissions (Para 8)
5. defendant's submissions (Para 9 , 10)
6. court's analysis of marks (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
7. court's reasoning on confusion (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41)
8. injunction application outcome (Para 42 , 43 , 44)

JUDGMENT :

AMIT BANSAL, J.

I.A. 40846/2024 (under Order XXXIX Rule 1 and 2 CPC)

1. By way of the present judgment, I shall decide the captioned application filed on behalf of the plaintiff under Order XXXIX Rule 1 and 2 of the Code of Civil Procedure, 1908 (hereinafter the ‘CPC’).

2. The present suit has been filed seeking relief of permanent injunction restraining the defendant from infringing and passing off the trade mark of the plaintiff, along with other ancillary reliefs.

3. Summons in the suit were issued on 29th September, 2024, and notice in the interim injunction application was issued on 1st October 2024. However, no ad-interim injunction order was passed in favour of the plaintiff.

4. The reply to the interim application was filed on behalf of the defendant on 15th October, 2024, and a rejoinder thereto has been filed by the plaintiff on 19th October, 2024.

5. Submissions of the parties were heard on 30th September 2024, 1st October 2024, 22nd October 2024, 29th October 2024, and 18th November 2024, when the judgment was reserved.

CASE SET UP BY THE PLAINTIFF

6. The case set up by the plaintiff in the plaint is as follows:

6.1. The plaintiff [Gensol Electric Vehicles Pvt. Ltd.], a subsidiary of Gensol Engineering Limited, is a company incorporated in the year 2022 with the vision to accelerate electric vehicle (EV) adoption towards a sustainable future.

6.2. The plaintiff operates a state-of-the-art manufacturing facility designed to produce a range of electric vehicles, including shared mobility fleets, cargo vehicles, personal mobility solutions, and mini-SUVs, to cater to diverse urban mobility needs.

6.3. Around August 2022, the plaintiff conceptualized the development of an innovative electric vehicle specifically designed for urban mobility. To bring this vision to life, the plaintiff collaborated with a third-party vendor to create a life-sized clay model of the vehicle.

6.4. On 19th September, 2022, the plaintiff’s design team commenced internal work on the electric vehicle’s design. Upon finalization of the design, the plaintiff coined and adopted the mark ‘EZIO’ for the vehicle. In December 2022, along with the term ‘EZIO’, the plaintiff, with the assistance of a third party, also created the logo.

6.5. On 30th June, 2023, the plaintiff applied for registration of the word mark ‘EZIO’ in Class 12 on a ‘ proposed to be used ’ basis with the Trade Marks Registry. After the publication of the mark on 20th November 2023, the Trade Marks Registry granted the registration of the word mark ‘EZIO’ in favour of the plaintiff on 19th May, 2024. The said registration is subsisting and valid till 30th June 2033.

6.6. After obtaining requisite permissions from the Automotive Research Association of India (‘ARAI’) and design registration for its vehicle, on 7th January 2024, the plaintiff tested its first electric vehicle on the roads of Pune, Maharashtra.

6.7. The plaintiff has provided details of the expenditure incurred in the development of the vehicle under its mark ‘EZIO’ in paragraph 17 of the plaint.

6.8. On 18th September, 2024, the plaintiff came across a newspaper article dated 9th September, 2024, which highlighted the defendant’s announcement of the launch of a new commercial electric four-wheeler under the mark ‘eZEO’ /

6.9. Upon further investigation, the plaintiff came across the website of the defendant, wherein the plaintiff found that the defendant had announced the launch of its Electric Vehicle under the mark ‘eZEO’ on 3rd October, 202

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