SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2008 Supreme(P&H) 72

2008 (2) RCR(Civ) 222
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RANJIT SINGH, J.
Anil Sabharwal & another ...Petitioners
VERSUS
Arun Sabharwal & others ...Respondents
Sunil Sabharwal & others ...Petitioners
VERSUS
Arun Sabharwal & others ...Respondents
Civil Revision No.1805 of 2007
Civil Revision No.1806 of 2007
Decided On : January 14, 2008

Advocates Appeared:
Mr. M.L.Sarin, Senior Advocate with Mr.Hemant Sarin, Advocate, for the petitioners in C.R.No.1805 of 2007
Mr. Vivek Sood, Advocate, for the petitioners in C.R.No.1806 of 2007.
Mr.Arun Palli, Senior Advocate with Mr.Jai Bhagwan, Advocate, for the respondents.

The main legal point established is that the jurisdiction of the court and the valuation of the suit should be determined based on the substance of the dispute, emphasizing the importance of the Family Settlement over the trademark issue.

Headnote:

Trademark Dispute - Jurisdiction of Court - Trade Marks Act, 1999 - Section 134(1)(b) - Kuldip Vs. Babit Nayar, 2004(2) Civil Court Cases 673; Mamaleshwar Kishore Singh Vs. Paras Nath Singh, 2002(1) LJR 773; State of Punjab Vs. Jagdip Singh Chowhan, 2005(2) CCC 37; Abdul Hamid Shamsi Vs. Abdul Majid and others, (1988) 2 Supreme Court Cases 575; Kamaleshwar Kishore Singh v. Paras Nath Singh and others, (2002) 1 Supreme Court Cases 304; Sujir Keshav Nayak v. Sujir Ganesh Nayak, (1992) 1 Supreme Court Cases 731

Fact of the Case:

The case involves a dispute between a closely related business family arising from a Memorandum of Understanding/Family Settlement. The respondents filed a suit for declaration of the settlement's validity, rendition of accounts, and damages for the sale of products under a trademark. The petitioners objected to the jurisdiction of the Civil Judge and the undervaluation of the suit.

Finding of the Court:

The court found that the dispute did not concern the use of the trademark but rather the violation of the Family Settlement, and therefore, the Civil Judge had jurisdiction. The court also noted that the suit was not for specific performance of the settlement and that the undervaluation could be addressed during the proceedings.

Issues: Jurisdiction of the Civil Judge, Undervaluation of the Suit, Nature of the Dispute (Trademark vs. Family Settlement)

Ratio Decidendi: The court held that the dispute did not relate to the use of the trademark but to the violation of the Family Settlement, justifying the Civil Judge's jurisdiction. The court also emphasized that the undervaluation could be rectified during the proceedings.

Final Decision: The court dismissed the revisions and upheld the jurisdiction of the Civil Judge and the acceptance of the suit despite undervaluation.

JUDGMENT

RANJIT SINGH, J. - This order will dispose of two (Anil Sabharwal and another v. Arun Sabharwal and others) and 1806 of 2007 (Sunil Sabharwal and others v. Arun Sabharwal and others). The facts are being taken from Civil Revision No.1805 of 2007.

2. Petitioners and respondents, a closely related business family, are contesting a suit which arises out of the Memorandum of Understanding/Family Settlement giving rise to subsequent disputes and differences between them. Respondents Arun Sabharwal and others filed a suit in the Court of Civil Judge (Junior Division), Patiala for declaration that Memorandum of Understanding/Family Settlement entered in between the petitioners and respondents No.1 and 2 a legal, valid, binding between the parties and further for rendition of accounts in regard to the profits made by defendants-petitioners by sale of products in the area of the respondents under the Trademark of Kesh Nikhar etc. and for payment of damages on account thereof. When served with the notice, the petitioners filed application dated 1.2.2007 for rejection of the plaint. Plea is that the petitioners are not residing within the territorial jurisdiction of the Court at Patiala and there is no cause of action against petitioner No.2. It is further pleaded that the dispute raised is regarding trade mark and as such Court of District Judge alone would be competent to adjudicate upon the alleged infringement and not the Court of Civil Judge (Junior Division), Patiala. Even objection in regard to suit having not been properly valued for the purposes of court fee is also raised.

3. The respondent-plaintiffs filed reply to the said application pointing out that subject matter of the family settlement, profits and business is regulated at Patiala. According to the respondents, the case has no concern with the trademark and hence the suit is properly instituted before the Civil Judge. It is further pleaded that the suit is properly valued for the purposes of court fee.

4. Civil Judge has found that respondent-plaintiffs have not alleged any violation of any trademark in the plaint and the present suit filed is for declaration and rendition of accounts and for damages for the loss caused. Reference is made to the ratio of law laid down in Kuldip Vs. Babit Nayar, 2004(2) Civil Court Cases 673, wherein it is held that there is no objective standard for valuation on the basis of which Court can arrive at a definite conclusion under Order 7 Rule 11(b) CPC for directing a plaintiff to affix the court fee on that basis. Further reference is made to the case of Mamaleshwar Kishore Singh Vs. Paras Nath Singh, 2002(1) LJR 773 to say that the court fee has to be paid on the plaint as framed and not on the plaint as it ought to have been framed. It is further observed that it is the substance of the relief sought and not the form which will be determinative of the valuation and the payment of the court fee. By referring to the case of State of Punjab Vs. Jagdip Singh Chowhan, 2005(2) CCC 37, it is noted that when the court is unable to say what the correct valuation of the relief is, it cannot require the plaintiff to correct the valuation as has been made by him. It is further observed that in such cases the court has no other alternative than to accept the tentative valuation made by the plaintiff and that in cases of compensation there is no objective standard available which can help to determine the amount to which the plaintiff should value the relief claimed by him. Accordingly, the application moved for rejection of the plaint is dismissed, which is impugned by way of the present revision petition.

4. Mr. M.L.Sarin, the learned Senior counsel has made three-fold submission before me. He would first contend that the suit is grossly undervalued and as such the Civil Judge is misconceived in passing the impugned order declining the application in regard to this obligation. He would also contend that the dispute clearly relates to a tra










Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top