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DELHI HIGH COURT
Kailash Gambhir, J
Lakhan Pal Shyam Kumar —Plaintiff
versus
Ram Prasad Gupta and Anr. —Defendants
C.S. (OS) 2208 of 2006
Decided on 24.5.2012

Counsel for the Parties:
For the Plaintiff:Mr. Suwarn Rajan with Mr. Santosh Kumar, Advocates.
For the Defendants: Mr. Sushant Singh with Mr. Debmalya Bhattacharya with Mr. V.K
Shukla and Mr. Tejendr Singh, Advocates,

IMPORTANT POINT
The intendement of Section 62 of the Copyright Act and Section 134 of the Trade Marks Act is to enable the plaintiff to initiate litigation at a forum convenient to it. It is not intended to allow the plaintiff to choose a territorial forum which is not convenient to either of the parties.

Headnote:Trade Mark Act, 1999—Section 134 and Section 62—Copyright Act—Suit for permanent injunction and rendition of accounts alleging infringement of plaintiff and trademark—Territorial Jurisdiction—Jurisdiction of Court at Delhi pleaded and passed on plea of “passing off”—Plea that defendant had applied for registration of his trade mark in Delhi would be irrelevant and was not a part of cause of action—Registration of plaintiff’s trade mark was for States of Uttar Pradesh and Madhya Pradesh and Delhi—However where only goods were being sold would not be itself mean that plaintiff or defendant carried on business at that place—Neither the address of plaintiff was of Delhi nor plaintiff claimed having any subordinate or corporate officer or agent in Delhi—Plaintiff could not invoke jurisdiction of Court at Delhi either under Section 134 or Section 62 of the Acts—Plaintiff had not placed any invoice on receipts showing that it did business in Delhi—Defendant earlier having filed assignment injunction suit in UP alleging defendant carrying business throughout India would not help plaintiff in present suit as general plea of defendant could not be treated to be a particular admission—Court at Delhi did not have territorial jurisdiction.

       Held: The short controversy to be decided at this juncture in the present case is that whether this court has territorial jurisdiction to entertain the present suit or not. As per the case set up by the plaintiff this court has the territorial jurisdiction to try and entertain the present suit as both the plaintiff and the defendants are carrying on business in Delhi and the defendants are committing the acts of infringement and passing off within the jurisdiction of this court. The plaintiff has also claimed that by virtue of fact that the plaintiff obtained registration of their trademark Delhi and also that the defendant No. 1 has filed application for registration of the impugned trade mark in Delhi, therefore this court has the territorial jurisdiction to entertain the present suit. The plaintiff has invoked Section 134 of the Trade Marks Act, 1999 and Section 62 of the Copyright Act 1957. (Para 7)

       It is no more res integra that Section 134 of the Trade Marks Act which .is similar in its sweep to Section 62 of the Copyright Act gives the Plaintiff the advantage of filing the suit at a place convenient to him instead of taking the dispute to the doorstep of the defendant. Section 134 which is available to the plaintiff for filing a suit wherein he actually or voluntarily resides or carries on business or personally works for gain is a forum in addition to Section 20 of the CPC, Dhodha House v. S.K Maingi, (2006) 9 SCC 41. (Para 8)

       Hence it is manifest that where only the goods are being sold would not mean that the plaintiff or the defendant carries on business at that place. In the case hand, the plaintiff has averred that the plaintiff as well as the defendant carries on business in Delhi, however no material has been placed on record by the plaintiff even to prima facie substantiate the said claim. Neither the address of the plaintiff is of Delhi nor has the plaintiff anywhere claimed having any subordinate or corporate office or any agent in Delhi. Thus in the umbrella of the abovesettled legal position, it is clear that the plaintiff cannot invoke the jurisdiction of this court either under Section 134 of the Trademarks Act or Section 62 of the Copyright Act. (Para 10)

       The plaintiff has also in the plaint made general statements that they have made an enviable reputation in the market and that both the plaintiff and the defendant operate in the same line of businesses and markets. The plaintiff has nowhere stated as to what are the markets, which territory is their area of dealing in their products, what kind of business operations are taking place in Delhi or where are the alleged infringing goods being sold by the defendant in Delhi or anywhere else. In the documents, the plaintiff has placed on record the copy of the Partnership Deed, the registration certificate of its trademark, the packaging of its product and the alleged infringing copy of the defendants product, copy of the legal notice issued by the plaintiff, copy of the plaint in OS No. 2/2006. filed by the defendants at Chitrakoot, Income Tax Returns and sale receipts of certain buyers within the territory of Mahoba, Uttar Pradesh. The plaintiff has not placed on record any invoice or receipt showing that it does business within the territory of Delhi. More so, the plaintiff has not placed on record any invoice indicating the fact that the defendants infringing goods are sold within the territory of Delhi. In the absence of any material placed on record to substantiate its averments made in the plaint, the argument of the counsel for the plaintiff that the cause of action has arisen within the territorial jurisdiction of this court cannot be conceded to. Bald averments in the plaint, not based on any cogent material cannot form the basis to raise a presumption of jurisdiction by this Court, which it otherwise does not have. A measured perusal of the plaint in the present case does not advance the case of the plaintiff as it is nothing but a spate of vague assertions. devoid of any pith or substance, indefensible by any material which does not fulfill the requirement of law. (Para 11)

       This Court also does not find force in the argument of the counsel for the plaintiff that in the suit for infringement filed by the defendant against the plaintiff herein at Chitrakoot, U.P the defendant’ has itself stated that the defendant does business on all India basis and thus would include the territory of Delhi as the argument is rather far fetched so as to read into a general statement to be a particular admission. It is also pertinent to mention here that the plaintiff herein had moved an application for amending para 24 of the plaint relating to territorial jurisdiction reproduced herein above so as to include the said pleading, but the said application was dismissed by this Court vide orders dated 3.2.2011. The judgments cited by the counsel for the plaintiff in this regard will not be applicable to the facts of the case at hand as the same reiterate the legal position discussed hereinabove. (Para 12)

       

JUDGMENT

Kailash Gambhir, J.— The present suit has been filed by the plaintiff for permanent injunction and rendition of accounts against the defendant alleging infringement of its trademark “Shyam Surti.”

2. Briefly stated the case of the plaintiff is that it is in the business of manufacturing, processing, marketing and distribution of chewing tobacco, khaini and surti under the trademark “Shyam Surti” since 1969 which is duly registered vide registration No. 312720 in class 34. It is the case of the plaintiff that in the month of May, 2006 the plaintiff came to know that .the defendants are manufacturing and marketing same goods as that of the plaintiff under the name “Om Shyam Surti” and even the packing is identical and deceptively similar to that of the plaintiff. According to the plaintiff the defendants are using the impugned mark out of greed with a view to take advantage of the reputation and goodwill of the plaintiff. The defendant No.1 and 3 however filed a suit for declaration, injunction and damages under Section 134(c) and 142 of the Trademarks Act against the plaintiff at Chitrakoot, U.P which is being contested by the plaintiff herein.

3. It is important here to give the sequence of events which has led the court to decide the matter at this stage. Vide orders dated 17th March, 2008 this Court framed issues arising out of the pleadings of the parties. Issue No.1 which deals. with the territorial jurisdiction of this Court was treated as a preliminary issue and counsel representing the parties had agreed that issue No.1 should be taken up first. Issue No.1 is reproduced as under:

“1. Whether this court does not have territorial jurisdiction in respect of the present suit? OPD.”

On 31st October, 2008 learned counsel representing the plaintiff conceded that Section 134 of the Trade Marks Act, 1999 may not be applicable to determine the jurisdiction of this Court but yet stated that this Court has territorial jurisdiction to entertain the present suit so far as passing off the trademark Shyam Surti is concerned. Counsel also submitted that the suit for passing off against the defendant before this Court will be maintainable, even though the defendant is not working or residing for gain in Delhi, because it had made an application for registration in the trademark Registry at Delhi. This Court on the said submission of the counsel for the plaintiff observed that prima facie the contention of learned counsel for the plaintiff does not appear, to be correct for in a suit for passing off, place of registration of the trademark is irrelevant and is not a part of cause of action. The Court further observed that the suit or the plaint can be filed in the Court where cause of action or part of cause of action has arisen. On the said observation of the Court, the learned counsel representing the plaintiff took time to examine the decisions of this Court and of the Supreme Court on the said aspect. It would be relevant to reproduce the order dated 31t October, 2008 as under:

“Learned counsel for the plaintiff concedes that Section 134 of the Trade Marks Act, 1999 may not be applicable but insists that this Court has territorial jurisdiction to entertain the present suit for passing off as the defendant, who is not working or residing for gain in Delhi, had made an application for registration in the trademark Registry at Delhi. Prima facie, the contention of the learned counsel for the plaintiff does not appear to be correct for in a suit for passing off, place of registration of the trademark is irrelevant and is not a part of cause of action. Suit or plaint can be filed in the Court where cause of action or part of cause of action has arisen. At this stage learned counsel for the parties pray for some time to examine decisions of this Court and the Supreme Court dealing with this aspect. Reist on 13th January, 2009.”

The matter was thereafter listed on various dates and vide order dated 3rd February, 2011 and 11th July

























































































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