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2024 Supreme(Guj) 1028

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANDEEP N. BHATT, J.
Amit Lalitkumar Aswani & Anr. – Appellants
Versus
Sunil Chelani & Anr. –Respondents
R/APPEAL FROM ORDER NO. 194 of 2023 With CIVIL APPLICATION (FOR INTERIM RELIEF) NO. 1 of 2023 R/APPEAL FROM ORDER NO. 207 of 2023 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023
Decided on : 29-02-2024

Advocates:
Advocate Appeared:
For the Appellant : MS VIDHI J BHATT
For the Respondent: ARPIT R SINGHVI, MR SP MAJMUDAR

IMPORTANT POINT
A composite suit involving causes of action under different statutes can only be filed in a court with territorial jurisdiction over both causes of action.

Headnote:

Copyright Infringement - Jurisdictional Error - Copyright Act, Trademarks Act - Section 62 of the Copyrights Act, Section 134 of the Trademarks Act

Fact of the Case:

The plaintiffs filed a suit against the defendants for infringement of copyright and passing off action under the Copyright Act and Trademarks Act. The trial court allowed the application under Order VII Rule 10 of CPC, permitting the plaintiffs to amend the plaint by deleting the prayer of passing off action and to file a fresh suit for copyright infringement. Both parties appealed the decision.

Finding of the Court:

The court found that the trial court erred in allowing the suit to proceed under the Copyright Act while lacking jurisdiction under the Trademarks Act. The court held that the composite suit could only be filed in a court with territorial jurisdiction over both causes of action.

Issues: The main issue was the jurisdiction of the court to entertain a composite suit involving causes of action under the Copyright Act and Trademarks Act.

Ratio Decidendi: The court held that a composite suit could only be filed in a court with territorial jurisdiction over both causes of action. The court also emphasized that the trial court erred in allowing the suit to proceed under the Copyright Act while lacking jurisdiction under the Trademarks Act.

Final Decision: The Appeal From Order No.194 of 2023 was allowed, and the Appeal From Order No.207 of 2023 was dismissed. The trial court was directed to return the plaint to the plaintiff to be produced before the appropriate court with territorial jurisdiction.

JUDGMENT :

1. Appeal from Order No.194 of 2023 is filed by the original defendants and Appeal from Order No.207 of 2023 is filed by the plaintiffs of Trade Mark suit No.2 of 2017, against the order dated 4.8.2023 passed by the learned 4th Additional District Judge, Vadodara in Trade Mark Suit No.2 of 2017, by which the application filed by the original defendants under Order VII Rule 10 of Code of Civil Procedure, 1908 (`CPC’ for short) is allowed, however, liberty is granted to the original plaintiffs to amend the plaint by deleting the prayer of passing off action with respect to trade mark `Santushti’ of file a fresh suit for copyright infringement within fifteen days from the date of the order.

2. As the facts in both the appeals are same and the contentions raised by the parties are also almost same in reference to the provisions of CPC and also the provisions of Copyright Act and Trademarks Act, the appeals are heard together and decided by this common judgment. The parties are referred to in this judgment as the original plaintiffs and original defendants for the sake of convenience.

3. The brief facts which are stated in the plaint are such that the plaintiffs have started business of manufacturing juices, milk shakes, thick shakes, ice-cream, fresh fruit juices etc. in the name of Santushti Shakes & More in Rajkot since the year 2009; that they have initially started business under banner Shantushti Shakes & More at P.Lal Chambers, Dr.Yagnik Road, Opp.Jagnath Police Chowki, Rajkot; that they had expanded their business in Vadodara at the address stated in Shop No.4, Ashoka Chamber, Opp.Sadar Bazar, Fatehgunj, Vadodara; that the plaintiff no.2 is a company created by plaintiff no.1 and the family members are the share holders of the said company; that under the same banner, a branch of Shantushi Shakes & More was opened in Vadodara in the year 2012 and also acquired registration of Copyright in the year 2014, whereas the trademark registration was still pending; that the defendant no.1 is their relative and old friend; that the defendant no.1 has continued the shop in Rajkot, which was established by the plaintiffs in the name of Santushti Shakes & More and was doing the business at the address mentioned in the suit; that the defendant no.2 had started a franchise in Rajkot in the name of Raj Marketing and is also doing the business of selling shakes, ice-creams and fast food etc.; that the plaintiffs filed the impugned suit being Trade Mark Suit No.2 of 2017 before the learned District Court, Vadodara against the appellants for declaration, permanent injunction and accounts of profit under Section 20 of the CPC, Section 134(1)(c) of the Trade Marks Act, 1999 and Section 62 of the Copyright Act, 1957. That the defendants filed application under Order VII Rule 10 of CPC for return of the plaint below Exh.64, in which the impugned order is passed, which is challenged by both the plaintiffs and defendants by filing these appeals.

4. Heard learned advocates for the parties.

4.1 Learned advocate Mr.Majmudar for the original plaintiffs has contended that the original plaintiffs have filed the suit with the following prayers in paragraph 22 of the plaint (translated version is as follows):

    “22. (a) Declare that Plaintiffs are the owner of Trademark, Label and Copy Right “SANTUSHTI” and defendants have no right to use the same.

(b) Defendants and their licensees, agents, dealer, distributors and servants be permanently restrained from printing, publishing and using the Label and Trademark “SANTUSHTI” of plaintiffs and also to restrain them from making breach of their Copyright Label Certificate Registration No.A-108936-2014 of Artistic Work “SANTUSHTI” Shakes and More.

(c) Defendants be directed to produce all the Stationery, Advertising Materials, Menu Card, Boards, Hoarding where “SANTUSHTI” label has been printed, before this Hon’ble Court and defendants be further directed to hand over all material to the plaintiff to destroy the

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