IN THE HIGH COURT OF DELHI
S. RAVINDRA BHAT, HIMA KOHLI, VIPIN SANGHI, VALMIKI J. MEHTA, VIBHU BAKHRU, JJ.
Carlsberg Breweries – Appellant
Versus
Som Distilleries and Breweries Ltd. – Respondent
C.S. (COMM) No. 690 of 2018, I.A. No. 11166 of 2018
Decided On : 14-12-2018
Civil Procedure Code, 1908 – Order II Rule 3 – Section 99 and 80 – Old Designs Act – Section 51, 53 and 47 –Trademarks Act – Section 30 – Reference to this larger, Special Bench of five judges, was occasioned by the detailed speaking order of a learned Single Judge, in present suit which sought the reliefs of infringement of design and a decree for injunction against passing off learned Single Judge, by order referred question as on whether decision in aspect of maintainability of a composite suit in relation to infringement of a registered design and for passing off where parties to proceedings are the same needs re-consideration by a larger bench in light which permits joinder of causes of action – Held, Transaction of sale is the same transaction which will be in question in both causes of action of infringement of a registered design and passing off, a substantial part of bundles of facts of two actions will be same as to whether or not article being sold by defendant of a particular design is or is not a fraudulent or obvious imitation article of plaintiff there will clearly exist common set of facts with respect to actions of passing off and defence of defendant of defendants goods/articles not being a fraudulent or obvious imitation by defendant of articles/goods of the plaintiff, resulting in arising of common questions of law and fact in two actions of infringement of the registered design and passing off –Account of existence of common questions of law and fact between two causes of action of infringement of a registered design and passing off, therefore to a considerable extent, evidence of two causes of action will be common situation to avoid multiplicity of proceedings there should take place joinder of two causes of action of infringement of a registered design and passing off against the same defendant in one suit, otherwise multiplicity of proceedings will result in waste of time money and energy of parties and also of courts – Answered accordingly.
JUDGMENT :
S. RAVINDRA BHAT, J.
1. The reference to this larger, Special Bench of five judges, was occasioned by the detailed speaking order of a learned Single Judge, in the present suit, which sought the reliefs of infringement of design and a decree for injunction against passing off. The learned Single Judge, by the order dated 02.05.2017, referred the question as on the whether the decision in Mohan Lal vs. Sona Paint, 2013 (55) PTC 61 (Del) (FB) - hereafter “Mohan Lal” on the aspect of maintainability of a composite suit in relation to infringement of a registered design and for passing off where the parties to the proceedings are the same needs re-consideration by a larger bench in the light of Order II Rule 3 CPC, which permits joinder of causes of action. The decision in Mohan Lal (supra) was by a Full Bench of three judges. During the pendency of this reference the dispute inter parties was rendered moot due to a mutually acceptable settlement; nevertheless this court was requested to hear and decide the issue, on account of the importance of the subject-matter.
2. We had the benefit of the draft judgment by Valmiki. J. Mehta, J. We agree with his conclusions as well as his analysis and reasoning. However, we are of opinion that it is also necessary to state additional reasons while recording the same conclusions.
3. The facts are not elaborately discussed; the present suit (out of which this reference arose) was filed, complaining of infringement of a registered design as well as passing off (of the plaintiffs trade dress) in respect of the bottle and overall get up of the “Carlsberg” mark. The defendant objected to the frame of the suit, pointing out that per Mohan Lal (supra), the two claims (for passing off and reliefs regarding design infringement) could not be combined in one suit. The single judge analysed parties' submissions and felt that the issue decided in Mohan Lal (supra) required a second look; he therefore, referred the matter for appropriate orders to the Chief Justice. This Special Bench was constituted, resultantly.
4. Mohan Lal (supra) decided, principally the question whether a passing off remedy is maintainable in the context of a complaint for infringement of copyright in the design (hereafter for clarity referred to as “design right” and “design infringement” to avoid confusion with the overlap with copyright). The Full Bench formulated three questions to be determined by it; the third issue:
5. The majority in Mohan Lal (supra) held that as the cause of action for a suit for infringement of a registered design is different from the cause of action on which a claim of passing off is premised, two separate suits have to be filed though, if filed at the same time, or in close proximity, they may be tried together as there may be some aspects which may be common. Pertinently, the majority view states:
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