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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

*

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

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