Psychotropics India Ltd Vs Syncom Healthcare Ltd.

Introduction:

When a decree has been granted to the plaintiff in a lawsuit pertaining to trademark infringement, one might assume that the matter has been resolved definitively. However, what if the defendants persist in manufacturing and selling infringing products even after the decree? 

This is a situation where the decree holder seeks a remedy through the initiation of execution proceedings. But, how can an instantaneous remedy be imposed to curtail the infringing activities of the judgment debtor? The answer lies in the appointment of a Local Commissioner in an execution proceeding, as highlighted by a significant ruling from the Hon'ble High Court of Delhi.

The Case at Hand:

In a case that came before the Hon'ble High Court of Delhi, the judgment debtor continued to sell infringing products even after a decree had been issued in favor of the plaintiff. In response, the judgment holder filed an application under Order 26 Rule 9 of the Code of Civil Procedure (CPC) seeking the appointment of a Local Commissioner during the execution proceeding. The primary purpose of this appointment was to seize the infringing products in possession of the judgment debtor. However, the Trial Court rejected this application, leading to challenge before the Hon'ble High Court of Delhi through a Civil Miscellaneous Main Petition.

Applicability of Order XXVI Rule 18A CPC:

The Hon'ble High Court of Delhi, in its deliberations, invoked Order XXVI Rule 18A of the CPC to underscore that the provisions of Order XXVI are not limited to the main suit but extend to execution proceedings as well. This interpretation lays the foundation for utilizing the mechanism of a Local Commissioner in the execution phase to achieve a swifter resolution of issues pertaining to the enforcement of court orders.

Significance of Appointing a Local Commissioner in Execution Proceedings:

In the context of execution proceedings following a decree in trademark infringement cases, the Hon'ble High Court of Delhi highlighted the critical role played by a Local Commissioner. The importance of this appointment can be analyzed from two key perspectives.

1. Ensuring Thorough Investigation:

One primary function of a Local Commissioner is to guarantee a comprehensive investigation into the activities of the defendant. This is particularly relevant in cases of trademark infringement, where the depth of the inquiry is essential to establish the extent of the violation. The Local Commissioner's involvement ensures that the court possesses a complete understanding of the defendant's actions.

2. Effective Enforcement of Court Orders:

Secondly, the appointment of a Local Commissioner serves as a mechanism to enforce court orders effectively. It provides a structured process to report and address any violations promptly. In cases where monetary damages might be a component of the final judgment, the presence of a Local Commissioner becomes even more crucial. The commissioner's involvement ensures that the court can efficiently handle issues related to damages, if warranted, in a systematic and timely manner.

:Crucial Role in Trademark Infringement Matters:

In trademark infringement cases, the significance of appointing a Local Commissioner becomes particularly evident. If Local Commissioners are not appointed in execution petitions, especially when continuous violations of the judgment or decree occur, the effectiveness of permanent injunctions granted during the initial decree is compromised. This is especially relevant in trademark infringement, where brand owners' rights and the interests of consumers and the general public are at stake.

For example, in cases involving medicinal preparations, the absence of Local Commissioners in execution proceedings can result in patients unwittingly purchasing products bearing infringing trademarks. This poses potential harm to their health and is contrary to their interests. By allowing for the appointment of Local Commissioners in execution petitions, the court can promptly and effectively address trademark infringement issues, safeguarding the rights of the decree holder and protecting the broader interests of society.

The Concluding Note:

In conclusion, the case before the Hon'ble High Court of Delhi underscores the pivotal role that Local Commissioners can play in execution proceedings following a decree in trademark infringement cases. The appointment of a Local Commissioner not only ensures a comprehensive investigation into the defendant's activities but also facilitates the enforcement of court orders. This mechanism becomes especially crucial when trademark infringement cases involve continuous violations and where the interests of consumers and the general public are at risk. By allowing for the appointment of Local Commissioners in execution petitions, the court can swiftly and effectively address trademark infringement issues, thereby upholding the rights of the decree holder and safeguarding the broader interests of the society.

The Case Law Discussed:

Date of Judgement/Order:30/09/2019

Case No. CM M 1409 of 2019

Neutral Citation No: N.A.

Name of Hon'ble Court: High Court of Delhi

Name of Hon'ble Judge:Prathiba M Singh, H.J.

Case Title: Psychotropics India Ltd Vs Syncom Healthcare Ltd.

Disclaimer:

Information and discussion contained herein is being shared in the public Interest. The same should not be treated as substitute for expert advice as it is subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Written By: Advocate Ajay Amitabh Suman, 

IP Adjutor - Patent and Trademark Attorney

Email: ajayamitabhsuman@gmail.com, 

Mob No: 9990389539