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2024 Supreme(Mad) 1102

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. SUNDAR, R. SAKTHIVEL, JJ.
Tractors & Farm Equipment Limited, represented by its Authorised Signatory C.P. Sounderarajan - Appellant
Versus
Massey Ferguson Corp., 4205 River Greenway Parkway Duluth, 30096 United States of America, represented by its Authorised Signatory - Respondent
C.M.A. No.2335 of 2024 & C.M.P. No.18553 of 2024
Decided On : 27-08-2024

Advocates Appeared:
For the Appellant : Mr. Aryama Sundaram, Sr. Counsel, Mr. Krishna Srinivasan, Sr. Counsel, instructed by Ms. Geethi Ara, Ms. Rohini Musa, Mr. Karthick Ram Mohan, Mr. Hemanth Ragu, Ms. Nithyashree of M/s. Ramasubramaniam & Associates and assisted by Ms. Nirupam Lodha, Ms. Shivangi Narang.
For the Respondent: Mr. R. Parthasarathy, Sr. Counsel along with Mr. Suhrith Parthasarathy instructed by Ms. Shreya Gupta Mr. Abhijeeth Sadikala, Mr. Allwin Godwin, Ms. Akhila Jayaraj.

IMPORTANT POINT
The judgment clarifies the jurisdictional boundaries between Commercial Courts and Commercial Divisions under the Commercial Courts Act, particularly for intellectual property disputes.

Headnote:

Commercial - Intellectual Property Rights - Commercial Courts Act, 2015 (Sections 2(1)(c)(xvii), 2(1)(i), 7, 21) - The court upheld the Commercial Court's decision to return the plaint for being presented in the Commercial Division, emphasizing the jurisdictional distinctions and procedural adherence mandated by the CCA.

Fact of the Case:

A plaint was filed by a company regarding trademark disputes against another company. The Commercial Court returned the plaint, citing jurisdictional issues under the Commercial Courts Act, 2015.

Finding of the Court:

The court found that the Commercial Court correctly applied the provisions of the Commercial Courts Act and the Code of Civil Procedure, determining that the plaint should be presented in the Commercial Division due to the nature of the dispute and its valuation.

Issues: Whether the Commercial Court's order to return the plaint for presentation in the Commercial Division was correct, considering the jurisdictional provisions of the Commercial Courts Act.

Ratio Decidendi: The court held that the Commercial Courts Act provides a clear framework for jurisdiction, and the Commercial Court's reliance on the Code of Civil Procedure was appropriate given the unamended provisions applicable to commercial disputes.

Result: The appeal was dismissed, upholding the Commercial Court's order.

JUDGMENT :

(M. Sundar, J.) :

Preface:

Captioned 'Civil Miscellaneous Appeal' (hereinafter 'CMA' for the sake of brevity, clarity and convenience) has been filed in this 'Commercial Appellate Division' (hereinafter 'CAD' for the sake of brevity, clarity and convenience) on 21.08.2024 assailing an order dated 16.08.2024 made in C.O.S. SR.No.464 of 2024 on the file of the Principal Commercial Court at Egmore, Chennai.

2. To be noted, above referred 'Principal Commercial Court at Egmore, Chennai,' shall hereinafter be referred to as 'said Commercial Court' and above referred 16.08.2024 order, wherein and whereby a plaint was returned, inter alia by taking recourse to Order VII Rule 10 of 'the Code of Civil Procedure, 1908' (hereinafter referred to as 'CPC' for the sake of brevity, clarity and convenience) shall hereinafter be referred to as 'impugned order' for the sake of convenience and clarity.

Factual matrix in a nutshell:

3. One 'Tractors and Farm Equipment Ltd.' (hereinafter 'TAFE' for the sake of brevity, clarity and convenience) presented a plaint dated 08.07.2024 vide C.O.S. SR. No.464 of 2024 on the file of said Commercial Court. In this plaint, TAFE is the sole plaintiff and the lone defendant is 'Massey Ferguson Corp., United States of America' (hereinafter 'MFC' for the sake of brevity, clarity and convenience).

4. In this suit, there are five limbs of prayers and they are set out in paragraph 94 of the plaint. Limbs 1 and 2 pertain to prayers for declaration in favour of TAFE (against MFC) that certain trademarks have been abandoned by MFC as regards its rights in India and certain trademarks are distinctive qua TAFE in India. As regards limbs 3 and 4, injunctive reliefs qua interfering with use of certain trademarks by TAFE in India and restraining MFC from claiming or holding out as regards some trademarks are sought. Limb 5 is the usual residuary limb which seeks any further or other order/s that are deemed fit and proper by said Commercial Court. Limbs 1 and 2 have been valued at Rs.25 lakhs each and limbs 3 and 4 have been valued at Rs.20 lakhs each, totalling Rs. 90 lakhs.

5. There is no disputation or contestation that the plaint pertains to dispute arising out of Intellectual Property Rights relating to registered and unregistered trade marks. This means that it is a 'commercial dispute' within the meaning of Section 2(1)(c)(xvii) of 'Commercial Courts Act, 2015' (hereinafter referred to as 'CCA' for the sake of brevity, clarity and convenience). Likewise, the valuation paragraph is paragraph 90, the plaint is valued at Rs.90 lakhs in the manner set out in the earlier part of this narrative and therefore, value of subject matter of suit is of 'Specified Value' within the meaning of Section 2(1)(i) of CCA.

6. The plaint was presented in said Commercial Court by TAFE and MFC was on caveat. The said Commercial Court took recourse to Order VII Rule 10 of CPC owing to maintainability issue (to be noted, maintainability has to be decided only by the Court and the Registry does not have a say other than raising the maintainability issue), heard out learned counsel for TAFE as well as learned counsel for MFC which was on caveat and made the aforementioned impugned order returning the plaint for being presented in the Commercial Division of this Court. Aggrieved by this impugned order, TAFE, the sole plaintiff is on appeal as sole appellant before this Court.

7. This CAD is of the view that it is not necessary to dilate more on facts qua averments in the plaint, considering the limited legal perimeter within which legal drill at hand in captioned CAD appeal should perambulate. In other words or to put it differently, this CAD is now concerned with the question as to 'whether the impugned order made by said Commercial Court returning the plaint by taking recourse to Order VII Rule 10 of CPC is correct?' and the more pointed question as to 'whether the plaint ought to have been presented only in the Commercial Division and not i

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