IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, J.
Mohalla Tech Private Limited - Appellant
Versus
Lagdhir Jugaldip Bharatkumar - Respondent
Appeal From Order No. 48 of 2021 With Civil Application (For Stay) no. 1 of 2021
Decided On : 24-05-2021
Trade Marks Act - Section 135 - Trademark Suit - Granted exparte adinterim injunction contrary - Balance of convenience and irreparable loss - Whether the impugned order meets with requirements of rule 3 of Order XXXIX of the First Schedule to the Code which have been held to be of a mandatory nature in a catena of decisions - Whether the grant of adinterim injunction would be governed by the provisions of section - Whether or not it meets with the requirements of rule 3 of Order XXXIX - whether the grant of interim injunction would be governed by provisions of section 135 of the Trade Marks Act or rule 3 of Order XXXIX of the First Schedule to the Code - Whether the Commercial Court has elaborately discussed reasons for grant of ex parte order - Whether the court was conscious of the relevant considerations for grant of ex parte adinterim injunction and has considered the same while passing such order - Whether the grant of interim injunction in a trade mark case would be governed by section 135 of Trade Marks Act - Whether a prima facie case in favour of the applicant has been established - whether the balance of convenience lies in favour of the applicant - Whether irreparable loss or damage will visit the applicant in the event injunctory relief is declined - Appellant impugned order was served appellant could not appear before the learned Chamber Judge – Appellant has filed this appeal before Court - Original Plaintiff, after having knowledge of the trademark being used of appellant in the month of January, almost after four months initiated the proceedings by filing Trademark Suit No. Learned Senior Advocate invited the attention of Court to impugned order, by adinterim injunction was granted to submit order does not disclose sufficient reasons of ingredients of primafacie case, balance of convenience and irreparable loss as provided by Rule (1) and (2) of the Order 39 of Code - Learned advocate submits that instead of quashing and setting aside the order, let time table be fixed for hearing Injunction Application which, the respondent plaintiff would adhere to and see same be disposed of as early as possible, as any observations made by this Court would come in way of the plaintiff as well as respondent on merits –
Finding of the Court:
Court has not applied its mind to the relevant fact observations made by the Division Bench of Court as noted more particularly in Para – 16 to 19, it would not be in interest of justice to interfere in the impugned order at stage with a rider and reminder to trial Court that the ratio laid down in aforesaid decision of the Division Bench of Court be kept in mind in future while considering to pass such exparte adinterim injunction under Order 39 Rule (1) and (2) of the Code - It would not have been proper for the trial Court to pass the order without adequate reason as held by this Court as well as by Apex Court time and again - learned Chamber Judge is requested to hear the Injunction Application in Trademark Suit on day-to-day basis in view of the fact Court has not interfered with the exparte adinterim injunction and decide Injunction Application on merits in accordance with law, after giving opportunity of hearing and considering the material on record –
Result: Appeal from Order stands disposed of
ORDER :
1. Heard learned Senior Advocate Shri Kamal Trivedi assisted by learned advocate Mr. Sachin Vasavada with learned advocate Mr.Samrat Mehta with learned advocate Mr. Aditya Chitale appearing for the appellant and learned advocate Mr. Hashit Tolia with learned advocate Mr. Vishal Thakker with learned advocate Ms. Rushvi N. Shah for the respondent through video conference.
2. By this Appeal from Order under Order 43, Rule 1(r) of the Code of Civil Procedure, 1908 (herein after referred to as 'the Code' for short), the appellant has challenged the exparte adinterim order dated 29.04.2021 in Trademark Suit No. 538 of 2021 passed by the learned Chamber Judge, City Civil Court, Ahmedabad.
3. The learned Chamber Judge, City Civil Court, Ahmedabad, by the impugned order, granted adinterim injunction in terms of Para 38 (A to C) of the injunction application (Notice of Motion) till 10.05.2021.
4. It is the case of the appellant that the impugned order was served on 13.05.2021, therefore, the appellant could not appear before the learned Chamber Judge on 10.05.2021. The appellant, thereafter, has filed this appeal before this Court.
5. From the above chronology events, it appears that the appellant could not appear on 10.05.2021 and thereafter, the learned Chamber Judge has adjourned the matter on 25.05.2021.
6. The learned Senior Advocate Shri Kamal Trivedi submitted that the learned Chamber Judge could not have granted exparte adinterim injunction contrary to provisions of Rule 3 of the Order – 39 of the Code. He further submitted that the Defendant – Original Plaintiff, after having knowledge of the trademark being used of the appellant in the month of January, almost after four months initiated the proceedings by filing Trademark Suit No. 538 of 2021. Learned Senior Advocate Shri Trivedi invited the attention of this Court to the impugned order, by which, the adinterim injunction was granted to submit that the order does not disclose sufficient reasons of the ingredients of the primafacie case, balance of convenience and irreparable loss as provided by Rule (1) and (2) of the Order 39 of the Code. It was further submitted that the impugned order is required to be quashed and set aside and the matter be remanded and the learned Chamber Judge be directed to hear the matter on merits for deciding the Injunction Application (Notice of Motion).
7. On the other hand, the learned advocate Mr. Tolia submits that instead of quashing and setting aside the order, let time table be fixed for hearing Injunction Application (Notice of Motion), to which, the respondent plaintiff would adhere to and see that the same be disposed of as early as possible, as any observations made by this Court would come in the way of the plaintiff as well as the respondent on merits.
8. The Division Bench of this Court in such similar facts in case of Lakhani Namkeen and AA Gruh Udhyog versus Isha Snacks Private Limited on in Appeal from Order No. 99 of 2019, has held as under:
7. Before adverting to the merits of the case, reference may be made to rule 3 of Order XXXIX of the First Schedule to the Code, which reads thus:
“3. Before granting injunction, Court to direct notice to opposite party. The Court shall in all cases, except where it appears that the object of granting the injunction would be defeated by the delay, before granting an injunction direct notice of the application for the same to be given to the opposite party : Provided that, where it is proposed to grant an injunction without giving notice of the application to the opposite party, the court shall record the reasons for its opinion that the object of granting the injunction would be defeated by delay, and require the applicant
(a) to deliver to the opposite par
“3A Where an injunction has been granted without giving notice to the opposite party, the court shall make an endeavour to finally dispose of the application within thirty days from the date on which....
(1) An ad interim injunction shall not be granted in derogation of right of opposite party.(2) An order passed without issuing notice to opposite party cannot be brought under purview of Section 36 C....
The duty of fair disclosure and the exceptional nature of without notice applications, emphasizing the importance of time-limited injunctions and the reserved liberty for the Defendants to apply for ....
The court must record reasons for granting ex-parte injunction without notice, making this requirement mandatory for valid exercise of jurisdiction.
Non-compliance with the conditions of an ex parte injunction under Order 39, Rule 3 CPC renders the injunction invalid, necessitating prompt judicial action.
Non-compliance with statutory requirements for an ex parte injunction renders the order invalid, emphasizing the need for adherence to procedural mandates.
The trial Court must provide reasoned orders when dealing with applications for temporary injunctions, particularly in urgent cases, and should not simply issue mechanical orders without assessment.
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