DELHI HIGH COURT
INTER IKEA SYSTEMS B V – Appellant
Versus
ITALICA FLOOR TILES PVT. LTD. & ANR. – Respondent
CS(COMM)-628/2019
TRADEMARK - INFRINGEMENT - EX PARTE DECREE - SETTING ASIDE - SUFFICIENT CAUSE - NEGLIGENCE OF ADVOCATE -
Fact of the Case:
Plaintiff, the owner of the IKEA trademark, filed a suit for permanent injunction restraining infringement of trademarks, passing off, rendition of accounts, damages, and delivery up against the defendants, who were using the mark IKAA. An ex parte decree was passed against the defendants, who then filed applications to set aside the decree and stay the injunction order.
Finding of the Court:
The court found that the defendants had been using the trademark "Italica" since 2004 and had registered it in 2005. The defendant company, Ikaa Granito Private Limited, was incorporated in 2016 and was using the trademark "Italica" of the defendant No.1 company. The court also found that the defendants had removed the name of Ikaa Granite Private Limited from their LinkedIn account and website in compliance with the court's order.
Issues: Whether the defendants had sufficient cause to set aside the ex parte decree due to the negligence of their advocate.
Ratio Decidendi: The court held that the defendants had shown sufficient cause to set aside the ex parte decree as they had engaged the services of an advocate who failed to appear before the court and inform them about the status of their case. The court also considered the fact that the defendants were based in Gujarat and it might have taken time to search and follow up their case before the court in the absence of any material information given by their advocate.
Final Decision: The court allowed the defendants' applications, subject to them paying costs of Rs.40,000/- in favor of the plaintiff and Rs.15,000/- in favor of the Delhi High Court Legal Services Committee. The court set aside the order setting the defendants ex parte as well as the judgment and decree passed against them. The suit was revived, and the defendants were granted 30 days' time to file their written statement.
I.A. 3466/2020 & I.A.3467/2020 in CS(COMM) 628/2019 Page 1 of 17
*
IN THE HIGH COURT OF DELHI AT NEW DELHI
%
Reserved on:
10.12.2021
Pronounced on: 03.01.2022
+
CS(COMM) 628/2019
INTER IKEA SYSTEMS B V
.... Plaintiff
Through:
Ms.Tanya Varma & Ms.Archita
Nigam, Advocates
Versus
ITALICA FLOOR TILES PVT. LTD. & ANR.
..... Defendants
Through:
Mr. Gaurav Bahl, Advocate
CORAM:
HON'BLE MR. JUSTICE SURESH KUMAR KAIT
ORDER
I.A. 3466/2020 (u/O IX Rule 13 CPC) & I.A.3467/2020 (u/S 151 CPC)
in CS(COMM) 628/2019
1.
In the present suit for permanent injunction restraining infringement
of trademarks, passing off, rendition of accounts, damages and delivery
up, an ex parte decree was passed this Court vide judgment and order dated
31.01.2020 against the defendants i.e. the applicants herein, which is
subject matter of challenge of the above captioned first applicants.
2.
By the above captioned second application, applicants/defendants
are seeking stay of order dated 05.12.20219 vide which ex parte ad interim
This is a digitally signed Judgement.
NEUTRAL CITATION NO: 2022/DHC/000007
I.A. 3466/2020 & I.A.3467/2020 in CS(COMM) 628/2019 Page 2 of 17
injunction was granted in favour of plaintiffs and against the
applicants/defendants as well as order and judgment dated 31.01.2020,
vide which suit was ex parte decreed against the applicants/defendants.
3.
At the hearing, learned counsel appearing on behalf of the
applicants/defendants had submitted that defendants are in the business of
making Floor tiles and based out of Morbi, Gujrat under the name and style
of “Italica”. According to applicants/defendants “Italica” came into
existence in the year 2004 for manufacturing and distributing, supreme and
genuine top notch quality tiles in India and to the world and has established
a large distribution network which consists of more than 300+ dealers all
over the world. Learned counsel submitted that defendants strive for
creating new, original and distinguished designs for its tiles, with the sole
intention of giving its customers strikingly different and attractive upscale
decorative tiles, in order to maintain its reputation and goodwill.
4.
It is further claimed on behalf of applicants/defendants that the trade
mark “Italica” is registered under Clause-19 in favour of defendant
No.1/company under the name Italica Floor Tiles Private Limited since
the year 2005 and under Clause-11 since the year 2017. It is next submitted
that defendant No.2- Ikaa Granito Private Limited was incorporated in the
This is a digitally signed Judgement.
NEUTRAL CITATION NO: 2022/DHC/000007
I.A. 3466/2020 & I.A.3467/2020 in CS(COMM) 628/2019 Page 3 of 17
year 2016 and its first invoice was issued in July, 2017, which bore the
trade mark “Italica”, since permitted by defendant No.1 for promotion of
defendant No.2 company.
5.
During
the
course
of
hearing
learned
counsel
for
applicants/defendants emphasized that defendant No.2 is not using the
mark IKAA but it is a part of corporate name of the company, which had
been duly approved by the Registrar of Companies as the name of the
company and thereby, there is no deliberate attempt to pass of the
plaintiff’s trademark. It was empathically submitted that the Ikaa Granito
Private Limited is not the trademark of the defendant No.2 and is not used
as the trade mark of defendants. Attention of this Court was also drawn to
the spellings and pronouncement of plaintiff’s trade mark and defendants’
trade name and trade mark, which is as under:-
6.
It was also contended that there cannot be any confusion between
the two trade names i.e. “IKEA” and “Italica” and Ikaa Granito Private
This is a digitally signed Judgement.
NEUTRAL CITATION NO: 2022/DHC/000007
I.A. 3466/2020 & I.A.3467/2020 in CS(COMM) 628/2019 Page 4 of 17
Limited is only the corporate name of the defendant No.2 and is limited
only to
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