IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J.
Nippon Paint Holdings Co. Ltd Through its Power of Attorney Subash Gaijes Selvaraj & Another – Appellants
Versus
Suraj Sharma & Another – Respondents
A. No. 556 of 2024 in C.S. (Comm. Div.) No.7 of 2024
Decided on : 21-03-2024
JURISDICTION - TRADEMARK INFRINGEMENT - SECTION 57 OF TRADE MARKS ACT - SUMMARY
Fact of the Case:
The plaintiffs sought to transfer a rectification petition from the Trademarks Registry at New Delhi to the Madras High Court, where they had filed a trademark infringement suit. The plaintiffs argued that the Court had territorial jurisdiction to consolidate both proceedings.
Finding of the Court:
The Court analyzed the jurisdictional issues and found that it had the power to transfer the rectification proceedings to itself, as part of the cause of action had arisen within its jurisdiction.
Issues: The key issues included the territorial jurisdiction of the Court, the statutory rights of the defendants, and the forum conveniens for deciding the rectification application.
Ratio Decidendi: The Court applied the 'dynamic effect' principle, empowering it to transfer the rectification proceedings and consolidate both proceedings for an effective resolution of the trademark dispute.
Final Decision: The Court allowed the transfer application, directing the Trademarks Registry at New Delhi to transfer all records pertaining to the rectification petition to the Madras High Court.
JUDGMENT :
1. The issue that arises for consideration in this application is whether this Court is having the territorial jurisdiction to transfer to itself by way of consolidation the Rectification Petition filed by the applicants/plaintiffs under Section 57 of the Trade Marks Act, pending before the Trademarks Registry at New Delhi.
2. The following facts are un-disputed:
b) The applicants/plaintiffs have pleaded in the plaint that their trademark has been infringed by the respondents/defendants at Chennai and the respondents/defendants are selling the infringed products at Chennai;
c) Both the applicants/plaintiffs and the respondents/defendants have obtained trademark registration for their respective marks.
d) The applicants/plaintiffs have obtained their trademark registration from the Trademarks Registry at Chennai, whereas the respondents/defendants have obtained the trademark registration for their trademark from the Trademarks Registry at New Delhi. The applicants/plaintiffs, prior to the filing of the suit, on coming to know that the respondents/defendants have copied their trademark and obtained trademark registration, have filed an application before the Trademarks Registry at New Delhi, seeking for rectification of the respondents'/defendants' trademark. The said application is still pending on the file of the Trademarks Registry, New Delhi. Till date no application has been filed by the respondents/defendants seeking for rectification of the applicants'/plaintiffs' registered trademark either before this Court or before the trademark registry.
3. The applicants/plaintiffs have filed this infringement suit on 09.01.2024 and immediately, thereafter they have filed this application seeking to transfer the Rectification Petition filed by them before the Trademarks Registry, New Delhi, to the file of this Court.
4. The respondents/defendants have opposed this application by questioning its maintainability on the ground that this Court does not have territorial jurisdiction over the Trademarks Registry at New Delhi.
5. The applicants/plaintiffs contends the following:
b) As part of cause of action has arisen within the jurisdiction of this Court, the respondents/defendants being the infringers cannot take the plea of forum non-conveniens, especially when they are advertising their goods within the territorial limits of this Court;
c) There is no express statutory bar for this Court to hear the rectification proceedings pending on the file of the Trademarks Registry, New Delhi and the present infringement suit together.
d) Since the dynamic effect of the impugned registration pending on the file of the Trademarks Registry, New Delhi is felt within the jurisdiction of this Court, there is no prohibition for this Court to entertain and allow this transfer application.
6. In support of the aforesaid contentions, Mr.P.S.Raman, learned Senior Counsel appearing for the applicants/plaintiffs drew the attention of this Court to the following authorities:
b) Jumeirah Beach Resort LLC vs. Designarch Infrastructure Pvt. Ltd. and another reported in MANU/DEOR/194894/2022;
c) University Health Network vs. Adiuvo Diagnostics Pvt. Ltd. and others reported in 2024 SCC Online Mad 185;
d) Dr.Reddy's Laboratories Ltd. vs. Fast Cure Pharma and others reported in 2023 SCC Online Del 5409.
7. On the other hand, the learned counsel for the respondents/defendants would question the maintainability of this transfer petition on the following grounds:
The Court has the inherent power to transfer rectification proceedings and consolidate trademark infringement and rectification proceedings for an effective resolution of disputes.
The court ruled that a suit not questioning trademark validity and filed solely for injunction does not invoke stay under Section 124 of the Trade Marks Act, 1999, emphasizing mandatory issue framing....
The court established that under Section 124 of the Trade Marks Act, 1999, a civil suit must be stayed if a rectification application regarding trademark validity is pending.
The right to cancel a trademark under Section 57 of the Trade Marks Act is independent of ongoing infringement suits and remains available for invocation regardless of related Section 124 implication....
Section 124 of the Trade Marks Act mandates automatic stay of infringement proceedings when rectification is pending, and does not apply to passing-off claims.
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