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2025 Supreme(Online)(Del) 47179

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tejas Karia, J
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA VS. THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
CS(COMM) 337/2018 | I.A. 19603/2022



Advocates:
For the Appellants/Petitioners: Umesh Mishra, Yashodhara Raina
For the Respondents: Ravinder Singh

A suit may be decreed in terms of an amicable settlement reached between parties under Order XXIII Rule 3 of the Code of Civil Procedure, 1908, when the parties voluntarily agree to terms and request the court to pass a decree accordingly.

Headnote:The matter involves an application filed under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908. The parties reached an amicable settlement regarding the ownership and use of the trade mark 'MARVEL' used for tea, edible oils, and related products. The court found that the parties had agreed to terms where the defendant acknowledges the plaintiff as the senior adopter and owner of the mark and agrees to cease all use of the mark or any deceptively similar marks. The primary issue was whether the suit could be decreed in accordance with the settlement terms submitted by the parties. The court reasoned that since the parties have voluntarily settled their disputes and requested the suit be decreed in terms of the settlement and specific prayers in the plaint, the court should give effect to this agreement. The Suit is decreed in terms of Prayer in Paragraph No. 20 (a) of the Plaint read with the above Terms of Settlement agreed between the Parties.

Table of Content
1. parties to a trademark dispute may enter into an amicable settlement to resolve ownership and usage rights. (Para 1 , 2)
2. the court can decree a suit based on the specific terms of a settlement agreement submitted by the parties. (Para 3 , 4 , 5)

O R D E R

I.A. 31910/2025

1. This is a joint Application filed by the Parties under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908.

2. The learned Counsel for the Parties submitted that during the pendency of the present Suit, the Parties have been able to amicably settle the disputes in the present Suit on the following terms (“Terms of Settlement”):

(a) That the Defendant (which term shall include its proprietors, promoters, assigns, sister concern, affiliates, successors-in-interest, licensees, franchisees, partners, representatives, servants, distributors, employees, agents etc. or anyone associated with it) recognises and acknowledges that the Plaintiff (which term shall include its assignees, sister concerns, affiliates, successors-in-interest, licensees, franchisees, etc.) is the senior adopter, owner and user of the Trade Mark ‘MARVEL’ dealing with the manufacturing and marketing of Tea, Edible oils, Vanaspati and refined oils, soaps, detergents etc. included in various classes of Schedule IV of the Trade Marks Rules, since the year 1994;

(b) That the Defendant or anyone associated with it shall not directly or indirectly manufacture, market, offer for sale (offline or online), export, sell, distribute, advertise, or howsoever otherwise use, reproduce or display the impugned ‘MARVEL’/ ‘ ’ mark and/or any mark identical with or deceptively similar to the Plaintiffs “MARVEL” Trade Marks/ Names in relation to its products/ business directly or indirectly, and/or in any manner whatsoever in respect of its business, singularly or in conjunction with any other word or logo as a trade mark, service mark, house mark, trade name, trading style, website, domain name, e-mail address, webpages or otherwise in any manner whatsoever;

(c) That the Defendant unconditionally agrees to not apply and/or obtain registration before any competent body or government authority for the ‘MARVEL’ Trade Marks/Name or any other Intellectual Property Rights of the Plaintiff for any mark/logo identical and/or deceptively similar to the Plaintiffs Intellectual Property singularly or in conjunction with any other word(s) or monogram/logo or label as a trade or service mark, trade dress/label/shape/3D mark, corporate/trade name, website address/domain name or copyright or in any other manner whatsoever;

(d) The Plaintiff agrees to give up the reliefs mentioned in Paragraph No. 20 sub-clause (b) for delivery up, (c) rendition of accounts, (d), (e) for costs of proceedings, for money decree in favour of the Plaintiff for damages in the sum of INR 20,00,000/-. In deference to the Plaintiff giving up these reliefs, should there be a breach/violation of these settlement terms by the Defendant in the future, it will pay to the Plaintiff a fixed sum of INR 5,00,000/- on account of the violation of the terms of this settlement, while allowing the Plaintiff to claim additional damages if and to the extent that it demonstrates that its actual damages exceed such amount;

3. Accordingly, the learned Counsel for the Parties submitted that the present Suit be decreed in terms of the Terms of Settlement and Prayer in Paragraph No. 20 (a) of the Plaint.

4. In view of the above, the Suit is decreed in terms of Prayer in Paragraph No. 20 (a) of the Plaint read with the above Terms of Settlement agreed between the Parties. The Parties are directed to be bound by the Terms of Settlement. Let Decree Sheet be drawn up accordingly.

5. The Suit as well as all the pending Applications stand disposed of.

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