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 - [IKEA - ITALICA] - The Delhi High Court set aside an ex parte decree and allowed the defendants to file their written statement in a trademark infringement suit. The court found that the defendants had a prima facie case and that they had been diligent in pursuing their case despite the negligence of their counsel.
Fact of the Case:
The plaintiff, IKEA, filed a suit for trademark infringement against the defendants, Italica Floor Tiles Pvt. Ltd. and Ikaa Granito Private Limited. The defendants were proceeded ex parte and an ex parte decree was passed against them. The defendants filed applications to set aside the ex parte decree and to stay the operation of the injunction order passed against them.
Finding of the Court:
The court found that the defendants had a prima facie case and that they had been diligent in pursuing their case despite the negligence of their counsel. The court also found that the defendants had paid costs of Rs.40,000/- in favour of the plaintiff and Rs.15,000/- in favour of the Delhi High Court Legal Services Committee.
Issues: Whether the ex parte decree should be set aside.
Ratio Decidendi: The court set aside the ex parte decree and allowed the defendants to file their written statement, subject to the defendants paying costs of Rs.40,000/- in favour of the plaintiff and Rs.15,000/- in favour of the Delhi High Court Legal Services Committee.
Final Decision: The court set aside the ex parte decree and allowed the defendants 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
2022:DHC:7
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
2022:DHC:7
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
2022:DHC:7
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 the production and sale of tiles and so, it cannot be said that
defendants have deliberately attempted to infringe plaintiff’s trade mark
or
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