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2025 Supreme(Online)(Del) 8274

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tejas Karia, J
Capital Foods Private Limited – Appellant
Versus
Aveer Foods Limited – Respondent
CS(COMM) 148/2025



Advocates:
For the Appellants/Petitioners: Rohil Bansal, Chirayu Prahlad
For the Respondents: Vatsalya Vigya, Shourajeet Chakravarty, Aprajita Bhardwaj

The court may pass a decree based on a mutual settlement agreement between parties (Order XXIII Rule 3 CPC) and grant a full refund of court fees if the settlement is reached at an early stage under Section 16 of the Court Fees Act, 1870.

Headnote:(A) Civil Procedure - Settlement of Disputes - Decree in terms of settlement - Where parties arrive at an amicable settlement during the pendency of a suit, the court may decree the suit in terms of the agreed settlement under Order XXIII Rule 3 of the CPC. (Para 4)

(B) Intellectual Property - Trademark and Copyright Infringement - Permanent Injunction - Agreement to cease use of deceptively similar marks and artworks constitutes a valid basis for a consent decree. (Para 2)

(C) Court Fees - Refund - Settlement at initial stage - Refund of court fees is permissible under Section 16 of the Court Fees Act, 1870, when the matter is settled at an early stage. (Para 8)

Issues: Whether the suit can be decreed in terms of the settlement agreement reached between the plaintiff and defendants.

Legal Category Hierarchy

  • intellectual property
    • trademark
      • infringement (Para 2, 4)
    • copyright
      • infringement (Para 2, 4)
  • practice and procedure
    • civil procedure
      • settlement
        • consent decree (Para 1, 4, 5)
      • court fees
        • refund (Para 7, 8, 9)

Table of Contents

1. Suit for trademark infringement and passing off — Parties settled dispute amicably — Joint application under Order XXIII Rule 3 CPC. (Para 1 , 2 )

2. Joint application for decree by consent — Parties submitted amicable settlement terms. (Para 2 )

3. Suit decreed in terms of settlement agreement; parties directed to be bound; court fees refunded. (Para 4 , 5 , 7 , 8 )

4. When is a party entitled to refund of court fees in a settled suit?

When the matter is settled at an early stage, the court may order refund of 100% court fees under Section 16 of the Court Fees Act, 1870. (Para 7 , 8 , 9 )

O R D E R

I.A. No.28285/2025

1. This is a joint Application filed on behalf of the Plaintiff and the Defendants under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908.

2. It is submitted by the learned Counsel for the Parties that during the pendency of the present Suit, the Parties have arrived at an amicable settlement of the disputes and the Parties have decided to mutually agree on the following Terms of Settlement:

“a. The Defendants acknowledge the Plaintiff to be the proprietor of the registered trademark “SCHEZWAN CHUTNEY” and of the artworks associated with the unique, peculiar, and distinctive packaging of its said SCHEZWAN CHUTNEY branded products which are given below (hereinafter called the Plaintiff’s IP).

, , ; and

b. That going forward, the Defendants undertake to never use the Plaintiff’s registered and well-known trademark / brand SCHEZWAN CHUTNEY or any other mark/ brand / packaging that may be deceptively similar to the Plaintiff’s IP in any form or manner; and

c. That going forward, the Defendants undertake that they shall not use the words “SCHEZWAN” and “CHUTNEY” together on the same packaging material so as to avoid any similarity or confusion with the Plaintiff’s IP; and

d. That the Defendants have taken required steps for the withdrawal of all trademark applications filed by them consisting of the words “SCHEZWAN” and “CHUTNEY” together and further undertake not to obtain or apply for any registration in respect of the impugned packaging artwork, the trademark “SCHEZWAN CHUTNEY,” before the Indian Trade Marks Office or any other authority.; and

e. The Defendants undertake to remove all references to the trademark “SCHEZWAN CHUTNEY” and the impugned products, which are mentioned in paragraph no. 2 hereinabove, from all online / offline platforms which are under their direct control before signing the present settlement agreement; and

f. As regards those online and offline platforms, where the listings of the infringing products are not under the direct control of the Defendants, they agree to write to such third parties asking them to take down such listings and also undertake to take all appropriate steps for the removal of such listings by such third parties and shall not object if the Plaintiff takes any kind of legal action against such third parties if they refuse to take down the online and offline listings of the Defendants’ infringing product. The Defendants undertake to write to such third parties within 48 hours of being informed about any such third party listings and shall also share all such correspondence / communication with the Plaintiff’s counsels over email at email@anandandanand.com, pravin@anandandanand.com, dhruv@anandandanand.com, rohil@anandandanand.com and

chirayu@anandandanand.com; and

g. In light of this settlement agreement, the Defendants agree to suffer a decree in terms of prayers sought in paragraphs no. 92 (a), (b), (c), (d) & (e) of the Plaint. The same are culled out below:

“PRAYER:

92. In light of the foregoing, it is most respectfully prayed that this Hon’ble Court may be pleased to issue:

a. An order of permanent injunction restraining the Defendants and all others acting for and on its behalf from directly or indirectly dealing in any of the products, the photographs of which are given in paragraph 31 of the instant plaint, and from using any other trademark / device / artwork / trade dress that may be deceptively similar to the Plaintiff’s products, the photographs of which are given in paragraph 08 of the instant plaint, amounting to infringement of the Plaintiff’s registered trademark SCHEZWAN CHUTNEY, the details of which are mentioned at paragraph 28 of the instant plaint; and

b. An order of permanent injunction restraining the Defendants and all others acting for and on its behalf from directly or indirectly dealing in any of the products, the photographs of which are given in paragraph no. 31 of the instant plaint and from using any other tradem

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