High Court of Judicature at Madras
SANJAY KISHAN KAUL, M. SATHYANARAYANAN & PUSHPA SATHYANARAYANA, JJ.
M/s. Duro Flex Pvt. Limited, represented by its Managing Director
Versus
M/s. Duroflex Sittings System 150 & Another
O.S.A. No. 111 & 112 of 2008
Decided on: 04-12-2014
Companies Act, 1956 - Trade Marks Act, 1999 - Section 18 - Trade and Merchandise Marks Act, 1958 - Sections 36 and 37 - General Clauses of Act, 1987 - Section 3(36) - Civil Procedure Code, 1981 - Section 20 - Business of manufacturing and marketing - Claims large sales - Registration Certificate - Declining to discontinue use of Trade Mark - Appellant applied for registration vide Application of its Trade Mark DUROFLEX adopted such application having been preferred before Deputy Registrar of Trade Marks in Class-20 for goods rubberized coir products – Mattresses Pillows Cushioning materials and Air Filters - Trade mark was registered - Appellant claims large sales throughout country under said Trade Mark - Trade Mark is stated to have been published in Trade Mark Journal and on Registration Certificate was issued - Appellant alleges that respondent dishonestly adopted trade mark DURO FLEXI PUFF which came to knowledge of appellant in November - Trade Mark is alleged to be deceptively similar and identical to registered trade mark of appellant with only suffix PUFF being added - Appellant thus sent a legal notice but respondent refused to oblige and result is that appellant filed a suit for perpetual injunction seeking a decree against respondent as also to deliver for destruction and a preliminary decree for rendering accounts of profits - Respondent company being a private limited company with its registered office located cause of action paragraph in plaint alleges that same arose where Register of Trade Mark in which plaintiffs Trade Mark is maintained - Concept of forum convenient fundamentally means that it is obligatory on part of Court to see convenience of all parties before it - Convenience in its ambit and sweep would include existence of more appropriate forum expenses involved law relating to verification of certain facts which are necessitous for just adjudication of controversy and such other ancillary aspects - Balance of convenience is also to be taken note of - Principle of forum convenient in its ambit and sweep encapsulates concept that a cause of action arising within jurisdiction of Court would not itself constitute Court to entertain matter - While exercising jurisdiction under Articles 226 and 227 of Constitution of India, Court cannot be totally oblivious of concept of forum convenient - Conclusion thus arrived at was that principles of forum convenience though applicable to international law as a principle of Comity of Nations would apply to discretionary remedy under Article 226 of Constitution of India – In yet another decision a Division Bench of this Court comprising two of us had occasion to consider an identical issue - In aforesaid case leave to sue was revoked on basis that a major portion of suit properties was situated outside jurisdiction of High Court - Applying principles of forum convenience it was held that since parties/witnesses who had knowledge with regard to certain transactions alleged in plaint would have to be examined and who were also ordinarily residing suit should be instituted in Court of local jurisdiction - There is little doubt that principles of forum convenient though not applicable to civil proceedings have a role to play insofar as consideration of grant of leave or revocation thereof under Clause 12 of Letters Patent is concerned - This is irrespective of fact as to what expression is used - As observed aforesaid balance of convenience is also forum convenient - Test applied is of appropriateness or suitability of the forum which ought to apply whether it be called forum convenient or that jurisdiction of Court under Section 20 of Code of Civil Procedure is different from Clause 12 of Letters Patent – Order accordingly
1. “M/s. Duro Flex Pvt. Ltd.”, the appellant, is a company incorporated and registered as a private limited company under the Companies Act, 1956 and stated to be engaged in the business of manufacturing and marketing Rubberised Coir Products such as Mattresses, Pillows, Cushioning materials and Air Filters since 01.10.1981 under the brand name “DUROFLEX”. It is the case of the appellant that initially the business was carried on under the name of “M/s. Duroflex Coir Industries Private Limited”, but that name was changed on 08.03.1996 to “M/s. Duroflex Limited” and thereafter on 29.09.2001 to the present entity.
2. The appellant applied for registration vide Application No.401231 dated 01.02.1993 of its Trade Mark “DUROFLEX” adopted from 01.10.1981, such application having been preferred before the Deputy Registrar of Trade Marks, Madras, in Class-20 for goods, rubberised coir products - Mattresses, Pillows, Cushioning materials and Air Filters. The trade mark was registered on 10.02.1983. The appellant claims large sales throughout the country under the said Trade Mark. The Trade Mark is stated to have been published in the Trade Mark Journal dated 16.08.1987 and on registration, the Registration Certificate was issued on 12.08.1988. The appellant alleges that the respondent dishonestly adopted the trade mark “DURO FLEXI PUFF”, which came to the knowledge of the appellant in November, 2005. The Trade Mark is alleged to be deceptively similar and identical to the registered trade mark of the appellant with only the suffix “PUFF” being added. The appellant thus sent a legal notice, but the respondent refused to oblige and the result is that the appellant filed a suit for perpetual injunction seeking a decree against the respondent, as also to deliver, for destruction and a preliminary decree for rendering accounts of profits. The respondent company being a private limited company with its registered office located in Sadar Bazar, Delhi, the cause of action paragraph in the plaint alleges that the same arose at Chennai where the Register of Trade Mark in which the plaintiff's Trade Mark is maintained. The appellant has an Office/Depot and is working for gain in Chennai from where it started manufacturing the product under the Trade Mark “DUROFLEX”, the Certificate of Registration has been issued at Chennai, from where the appellant issued a legal notice and the reply of the respondent was received, declining to discontinue the use of the Trade Mark. Since the respondent was carrying on business outside the jurisdiction of the Court, it is stated to be on account of abundant caution that the appellant filed Application No.323 of 2007, seeking leave to sue under Clause-12 of the Letters Patent. This application has been dismissed by the impugned order of the learned Single Judge dated 29.08.2007, which has been assailed in the present appeal.
3. The impugned order is predicated on the principle of forum conveniens. The learned Single Judge took note of the fact that there was no allegation of any sale of goods within the jurisdiction of this Court and analysed the plea of the appellant based on the factum of registration of the Trade Mark at Chennai. After referring to various judicial pronouncements, the learned Single Judge opined that the question whether merely because the Office of the Trade Mark Registrar is situated in Chennai would amount to registration of the Trade Mark in Chennai has to be answered in favour of the appellant, in view of the pronouncement of the Division Bench of this Court in S.B.S. Jayam and Co. vs. Gopi Chemical Industries Limited, India, reported in (1997(1)MLJ 287). However, the question of forum conveniens was distinguished from this aspect and it was concluded that the appellant did not have its principal place of business at Chennai as only a Branch Office was located here, while the registered office was in Alleppey, Kerala, with branches all over India. The respondent did not carry on bus
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