SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Online)(Del) 47972

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tejas Karia, J
Capital Foods Private Limited – Appellant
Versus
Sankalp Recreation Private Limited – Respondent
CS(COMM) 556/2025



Advocates:
For the Appellants/Petitioners: Pravin Anand, Rohil Bansal, Chirayu Prahlad
For the Respondents: Tanvi Jain

The court may pass a decree based on a mediation settlement agreement between parties in a trademark infringement suit 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) Intellectual Property - Trademark Infringement and Passing Off - Settlement of Dispute - Where parties arrive at a settlement through mediation, the court may decree the suit in terms of the Settlement Agreement, recording undertakings regarding non-use of deceptively similar marks and packaging. (Para 7)

(B) Court Fees Act - Refund of Fees - Settlement at early stage - Refund of 100% of court fees is permissible under Section 16 of the Court Fees Act, 1870, when a matter is settled at an initial stage. (Para 10)

Issues: Whether the suit can be decreed in terms of a settlement agreement reached through mediation.

Table of Content
1. application for early hearing due to mediation settlement. (Para 1 , 2 , 3)
2. decreeing a suit based on terms of a settlement agreement. (Para 4 , 5 , 6 , 7)
3. refund of court fees upon early settlement of a lawsuit. (Para 8 , 9 , 10 , 11 , 12 , 13)

O R D E R

08.12.2025

IA No.30563/2025

1. The Plaintiff has filed the present Application under Section 151 of the Code of Civil Procedure, 1908 for seeking early hearing of the present Suit.

2. The learned Counsel appearing for the Parties submitted that the matter has been settled between the Parties through Mediation before the Delhi High Court Mediation & Conciliation Centre and a Settlement Agreement dated 26.11.2025 has been executed between the Parties.

3. Accordingly, the learned Counsel for the Parties submitted that in view of the settlement arrived at between the Parties, the hearing of the present Suit be preponed and the Suit be decreed in terms of the Settlement Agreement dated 26.11.2025.

4. In view of the above, the present Application is allowed and with the consent of the Parties, the matter is taken up today.

5. The Application stands disposed of.

6. The learned Counsel for the Parties submitted that present Suit be decreed by recording the Terms of Settlement arrived at between the Parties in the Settlement Agreement dated 26.11.2025.

7. Accordingly, the present Suit is decreed by recording the following Terms of Settlement arrived at between the Parties in the Settlement Agreement dated 26.11.2025:

a. The Defendants acknowledge the Plaintiff to be the sole proprietor of the registered and well-known trademark and brand SCHEZWAN CHUTNEY and also of the artworks associated with the unique, peculiar and distinctive packaging of its said SCHEZWAN CHUTNEY branded products which are given below and are also subject matter of the copyright registration no. A-149563/2023 dated 08.12.2023 (hereinafter called the Plaintiff's IP).; and

b. 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. The Defendant No. 1 undertakes to change the name of their impugned products mentioned hereinabove to "CHINESE CHUTNEY", and the Defendant No. 2 undertakes to change the name of their impugned products mentioned hereinabove to “SCHEZWAN SAUCE / SCHEZUAN SAUCE”, so as to avoid

any similarity or confusion with the Plaintiff's IP in any form or manner on or before 31.12.2025; and

d. That the Defendants state that they have not obtained any registration(s) or applied for registering the artwork associated with the packaging of their impugned products mentioned hereinabove and/or the trademark SCHEZWAN CHUTNEY and / or any other trademark(s) which may be deceptively similar to or identical with the Plaintiff's IP before the Indian Trade Marks Office or any other authority; and

e. The Defendants undertake not to obtain any registration(s) or apply for registering the artwork associated with the packaging of their impugned products mentioned hereinabove and/or the trade marks SCHEZUAN CHUTNEY and / or SCHEZWAN CHUTNEY and /or any other trade mark(s) which may be deceptively similar to or identical with the Plaintiff's IP before the Indian Trade Marks Office or any other authority; and

f. The Defendants undertake to remove all references to the Plaintiff's registered and well-known trademark SCHEZWAN CHUTNEY and their impugned products mentioned hereinabove from all online platforms on or before 30.11.2025. It is also stated that while all references to the mark have been removed from online portals, the listings https://www.store2k.com/products/wah-luft-schezuan chutney-400-gm and at https://ebaqala.com/en/kuwait-indian grocery/groceries/2336/wah_luft schezuan chutney 400g.html cannot be removed by the Defendant No. 2 on their own. That being said, steps have duly been taken by the Defendant No. 2 to get the said l

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top