2026 Supreme(Online)(Del) 11686
IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J
RAAJ UNOCAL LUBRICANTS LIMITED VS. APPLE ENERGY PVT LTD & ANR.
CS(COMM) 101/2023 | I.A. 12614/2026 | I.A. 12709/2026
For the Appellants/Petitioners: Ranjan Narula, Parth Bajaj, Shakti Priyan Nair
For the Respondents: Pranav Vyas, Manhar Singh Saini, Sidhant Kaushik, Sankalp Singh
A commercial suit may be disposed of by the court when parties reach an amicable settlement, provided the terms are lawful and comply with Order XXIII Rule 3 of the Code of Civil Procedure, 1908.
Headnote:The matter involves a commercial suit for trademark infringement where the parties sought disposal of the proceedings based on a settlement agreement dated 23.04.2026, filed under Order XXIII Rule 3 of the Code of Civil Procedure, 1908. The plaintiff sought protection for the trademark 'PRACTIN', and the defendant agreed to cease use of 'PACTYON' and modify the trade dress of 'WOKTYON' by a specified date. The court found the settlement terms lawful and within the legal contours of the CPC. The primary issue was whether the suit could be disposed of based on the amicable out-of-court settlement and the request to delete a non-essential party. The court reasoned that since the inter se disputes were resolved and the terms were lawful, there was no impediment to disposing of the suit in terms of the agreement. The suit is disposed of in view of the settlement arrived at between the parties vide the Settlement Agreement dated 23.04.2026, alongwith pending application.
| Table of Content |
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| 1. disposal of suit via settlement and pruning of unnecessary parties. (Para 1 , 2 , 3 , 4) |
| 2. specific undertakings regarding trademark use and trade dress modifications. (Para 5 , 6) |
| 3. judicial scrutiny of settlement terms for lawfulness under cpc. (Para 7 , 8 , 9 , 10 , 11) |
| 4. redaction of confidential documents in court records to balance justice and privacy. (Para 12 , 13 , 14 , 15 , 16 , 17) |
O R D E R
I.A. 12614/2026 (Under Order XXIII Rule 3, CPC)
1. This is a joint application under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908, (hereinafter referred to as ‘CPC’) seeking disposal of the present petition on the basis of settlement having been arrived at between the plaintiff and defendant no.1.
2. Learned counsel for the parties state that the inter se disputes have been resolved amicably out of Court and have been recorded in writing vide the Settlement Agreement dated 23.04.2026.
3. Learned counsel for the parties point out the para 9 of the Settlement Agreement and state that though the plaintiff had arrayed defendant nos.1 and 2 as parties to the suit, however, defendant no.2 is stated to be a manufacturer who was engaged by the defendant no.1 for manufacturing its products. They jointly state that since the dispute has been settled between the parties, defendant no.2 may not be a necessary party for the purposes of passing a decree and they pray that defendant no.2 may be deleted from the array of parties.
4. Accordingly, the defendant no.2 is deleted from the array of parties.
5. The terms of settlement are recorded in para 1 to para 9 of the Settlement Agreement dated 23.04.2026. The same are reproduced hereunder:
“1. The Defendant No.1/Respondent No.1 hereby agrees and undertakes that it shall not (whether directly or indirectly), use, manufacture, sell, offer for sale, advertise, market, distribute or deal in any pharmaceutical or medicinal products under the trademark 'PACTYON' or any other trademark/name that is identical with or deceptively similar to the Plaintiff's/Petitioner's trademark current/existing 'PRACTIN', including the use of any packaging and trade dress, get-up, colour scheme, layout or overall presentation that is identical with or deceptively similar as may be prescribed under law or equity, to that of the Plaintiff/Petitioner's product "PRACTIN" in the Territories mentioned in the Business Transfer Agreement dated 12 February 2020 (hereinafter referred to as " the BTA ").
2. The Plaintiff/Petitioner shall take steps to fully and finally close and dispose the litigations i.e., CS (COMM) 101/2023 and Rectification Petition being C.O. (COMM. IPD - TM) 123/2025 including all the interim applications filed thereunder, filed against Defendant No. 1/Respondent No.1, in relation to the trademark 'WOKTYON'. The Plaintiff/Petitioner shall not object to or take any action against Defendant No. 1/Respondent No.1's use of the trademark 'WOKTYON'. In respect of the use of 'WOKTYON' in its existing trade dress, the Defendant No. 1/Respondent No.1 undertakes that it shall be entitled to retain or use the trade dress for 'WOKTYON' until December 31, 2026 and after December 31, 2026 (the Defendant no.1 /Respondent No.1 has the discretion but not the obligation to earlier than December 31, 2026), the Defendant No. 1/Respondent No. 1 shall not use/sell/advertise/offer for sale or deal in any manner the current packaging/trade dress of the product bearing the mark WOKTYON. The packaging/trade dress of WOKTYON shall undergo the specific modification by removing or substituting the orange-coloured vertical running borders on its packaging which has been mutually agreed by the Parties, as depicted below:
Existing New
3. Provided that all rights of the Parties in case of any instance of alleged infringement of their respective intellectual property rights by the other Party to these Consent Terms shall remain reserved including availing appropriate remedies in accorda