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2007 Supreme(Online)(Del) 6

DELHI HIGH COURT
, J
Finolex Cables Ltd. (M/s) v. M/s. Finolex Auto Pvt. Ltd
CS (OS) No. 2347/2000



Defendant's participation post ex parte proceedings must accommodate fair trial principles, allowing issue framing despite prior procedural delays.

Headnote:(A) Trade Marks Act, 1999 - Sections relating to trademark infringement - Plaintiff sought perpetual injunction for trademark infringement against the defendant using a similar mark - The court found the plaintiff's claims valid where the defendant was proceeded ex parte and later sought to frame issues causing no harm to proceedings since the plaintiff had yet to file evidence. (Paras 2, 16)

(B) Civil Procedure Code, 1908 - Order IX, Rule 7 - A defendant can join proceedings if they demonstrate good cause for their absence - In circumstances where the plaintiff fails to lead evidence before the defendant participates, no undue advantage is accrued thereby allowing for a fair trial. (Paras 10, 15)

Facts of the case:
The plaintiff filed suit against the defendant for trademark infringement but faced delays in evidence submission. The defendant missed the initial hearing but later sought to enter the proceedings, leading to disputes over the framework of the ongoing trial.

Findings of Court:
The court decided framing the issues would not amount to setting the clock back, since it facilitates complete adjudication.

Issues: Whether framing issues post-defendant's reappearance without prior evidence submission by the plaintiff was permissible without affecting accrued advantages.

Ratio Decidendi: It was ruled that failing to frame issues or delays in evidence do not preclude the defendant from participating, particularly when both parties should be adequately represented in court.

Result: Appeal dismissed.

Table of Content
1. background of the trademark infringement case initiated by the plaintiff. (Para 1 , 2)
2. procedural issues surrounding the ex parte proceedings and applications filed by the defendant. (Para 3 , 4 , 5)
3. argument regarding the defendant's right to participate and frame issues. (Para 6 , 7)
4. court's ruling on the legitimacy of asking to frame issues at later stages. (Para 8 , 9 , 10 , 11 , 12)
5. final ruling affirming the need for issue framing for a complete trial. (Para 13 , 14 , 15 , 16)

1. Before we take note of the controversy involved in this appeal and address the same, it would be appropriate to have stock of the factual background in which the said controversy has arisen.

2. The appellant (hereinafter referred to as 'the plaintiff') has filed suit CS (OS) No. 2347/2000 on the Original Side of this Court for perpetual injunction, infringement of trademark and trade - name, copyright, passing off, rendition of accounts, etc. against the respondent who is the defendant in the said suit (hereinafter referred to as 'the defendant'). The plaintiff is stated to be the owner of trademark FINOLEX and is aggrieved by the user of trademark FINOLUX, mark adopted by the defendant. Along with the main suit, the appellant also filed I. A. No. 10903/2000 in which the appellant was granted ex - parte ad interim injunction. After receiving the summons, the defendant entered appearance and contested the suit by filing written statement and reply. The case was thereafter adjourned on several occasions in order to enable the parties to arrive at a compromise. However, no compromise could be arrived at. When the matter came up for hearing on 21-3-2003, there was no appearance on behalf of the defendant. The learned Single Judge ordered that the defendant be proceeded ex parte. The plaintiff was allowed to lead evidence by way of affidavit. In the application for interim injunction, i.e. I. A. No. 10903/2000, interim order was also confirmed. Exact order which was passed on that date is as under : -
"Suit No. 2347/00
There is no appearance on behalf of the Defendant who is set ex parte. Evidence be led by way of affidavit which should be filed within four weeks from today.
Renotify the matter before the Joint Registrar for exhibition of documents on 7-5-2003.
IA No. 10903/2000
Interim Order stands confirmed.
I. A. stands disposed off."






3. On 7-5-2003, when the matter was listed before the Joint Registrar, counsel for the defendant appeared and was apprised that it was proceeded ex parte. Since the plaintiff had not filed its evidence by way of affidavit, further two weeks period for this purpose was granted, subject to the payment of costs of Rs. 500/- and the matter was adjourned to 22-9-2003. The defendant, in these circumstances, filed the application under O. IX, R. 7 of the Code of Civil Procedure, 1908 (for short, ' CPC ') for setting aside the ex parte order passed against it on 21-3-2003. This application was filed on 28-3-2003. The learned Single Judge did not find any sufficient cause disclosed by the defendant in the said application and, therefore, vide order dated 9-8-2004, this application was dismissed. It was, however, clarified that the defendant is not precluded from joining the proceedings but it cannot expect the clock to be set back'. It may also be mentioned that the plaintiff had not filed its evidence or the original documents till then. After the passing of order dated 9-8-2004, the matter was listed before the Joint Registrar on 25-11-2004, as directed. On that date, the plaintiff sought further time to file its evidence by way of affidavit and two weeks time was given as a last opportunity. Still, affidavit was not filed and on 8-2-2005, further time to four weeks was granted and the matter was adjourned by the Joint Registrar for 9-5-2005. The affidavit was now filed after the aforesaid order, but the deponent did not appear on 9-5-2005 and, therefore, the matter had to be adjourned again for putting e


























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