2023 Supreme(Online)(Del) 24258
DELHI HIGH COURT
PENTEL KABUSHIKI KAISHA & ANR – Appellant
Versus
M/S ARORA SATIONERS AND ORS – Respondent
CS(COMM)-361_2017
The terms of a settlement agreement are valid and enforceable if they are entered into freely and without any undue influence or pressure and if the terms of the agreement are clear and unambiguous.
Headnote:
DESIGN INFRINGEMENT - SETTLEMENT AGREEMENT - VALIDITY - TERMS OF SETTLEMENT
Fact of the Case:
The dispute arose from an alleged infringement of a registered design for a writing instrument. The plaintiffs, Pentel Kabushiki Kaisha and another, filed a suit against the defendants, M/s Arora Sationers and others, for infringement of their registered design. The defendants contested the validity of the design and claimed that they had not infringed it.
Finding of the Court:
The court found that the terms of the settlement agreement were legal and in order. The court noted that the parties had agreed to settle the dispute on the terms that the defendants would acknowledge the validity of the plaintiffs' registered design and cease manufacturing, selling, or offering for sale any product that was identical to or an obvious fraudulent imitation of the plaintiffs' design. The defendants also agreed to withdraw a cancellation petition filed against the plaintiffs' registered design and to take necessary steps for seeking such withdrawal. The plaintiffs agreed not to object to the defendants' use of certain trademarks and designs.
Issues: The main issue before the court was whether the terms of the settlement agreement were valid and enforceable.
Ratio Decidendi: The court held that the terms of the settlement agreement were valid and enforceable. The court noted that the parties had entered into the agreement freely and without any undue influence or pressure. The court also found that the terms of the agreement were clear and unambiguous.
Final Decision: The court decreed the suit in terms of the settlement agreement. The court also ordered the defendants to pay the plaintiffs an amount of INR 10,00,000 (INR Ten Lakhs Only) by way of account transfer on or before October 14th, 2023, towards full and final settlement, litigation costs, and damages.
CS(COMM) 361/2017
Page 1 of 4
$~36
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IN THE HIGH COURT OF DELHI AT NEW DELHI
+
CS(COMM) 361/2017, I.A. 6057/2017, I.A. 2692/2022 & I.A.
2693/2022
PENTEL KABUSHIKI KAISHA & ANR
..... Plaintiffs
Through:
Mr. Afzal B. Khan and Ms.
Suhrita Majumdar, Advs.
versus
M/S ARORA SATIONERS AND ORS
..... Defendants
Through:
Ms. Zeba Tarannum Khan, Ms.
Deeksha Gulati and Ms. Sruthi Venugopal,
Advs.
CORAM:
HON'BLE MR. JUSTICE C.HARI SHANKAR
O R D E R (O R A L)
%
12.12.2023
1.
The dispute between the parties stand settled in terms of the
settlement agreement dated 11 September 2023, which has been
placed on record.
2.
The terms of settlement read thus:
“(i)
That the Second Party / Defendants acknowledge the
validity of the Registered Design of the First Party/Plaintiff in
Design No. 263172 and acknowledge that Plaintiff no. 1 is the
owner of the Design No. 263172 under the Designs Act, 2000 as
well as under common law.
(ii)
That the Second Party/ Defendants agree and undertake to
cease manufacture, sale, offer for sale and/or advertise any product
that is identical to or an obvious fraudulent imitation of the
Plaintiff No. 1’s Design bearing Registration No. 263172 which
Digitally Signed
By:HARIOM
Signing Date:17.12.2023
13:27:18
Signature Not Verified
CS(COMM) 361/2017
Page 2 of 4
amounts to infringement of the Plaintiff’s rights in their Registered
Design including, but not limited to, the designs marketed under
the brands MONTEX MASTANI and MONTEX X-20. An extract
of the two writing instruments sold under the said brands is
annexed herewith and marked as ANNEXURE-D.
(iii)
That the First Party/ Plaintiffs agree and undertake that they
shall not object to the Second Party’s/ Defendant’s use of the Trade
Marks-MONTEX MASTANI and MONTEX X-20.
(iv)
The Second Party/ Defendants undertake to take down all
product listings across all E-Commerce and other platforms
pertaining to the aforementioned designs under the brands
MONTEX MASTANI and MONTEX X-20 within one month
from the date of this agreement and, if any other listings are found,
within 24 hours of the said listing being brought to the attention of
the Defendants.
(v)
That during the course of mediation proceedings, the
Second Party/ Defendants had proposed an alternative design to be
applied to a pen/writing instrument, which design along with the
surface texture is annexed herewith and marked as ANNEXURE-
E. The Plaintiffs agree and undertake that they have no objection to
the use of the annexed design by the Defendants.
(vi)
That the First Party / Plaintiffs agree and undertake that
they have no objection to the use of trade mark MASTANI as well
as to the use of blue and black color combination on the
defendant's modified pen, marked as ANNEXURE E.
(vii)
That the Defendant No. 2 agrees and undertakes that it shall
withdraw the Cancellation Petition filed against the Plaintiff No.
1’s Registered Design bearing Registration No. 263172 and take
necessary steps for seeking such withdrawal including addressing
such communication/ petition as may be necessary to The Designs
Office prior to October 14th, 2023 under intimation to the counsel
for Plaintiffs/ First Party.
(viii) That the Defendant No. 3 agrees and undertakes that it shall
surrender/ seek cancellation of their Registered Design under
Registration No. 282909 and take necessary steps for seeking such
cancellation including addressing such communication/ petition as
may be necessary prior to October 14th, 2023 under intimation to
the counsel for First Party /Plaintiffs.
(ix)
That Mr. Ramanlal Rughnathmalji, the proprietor of
Defendant no. 2, agrees and undertakes that it shall seek
Digitally Signed
By:HARIOM