Hulm Entertainment Pvt Ltd Vs SBM Gaming Network Private Limited

This case involves Hulm Entertainment Pvt Ltd challenging an order by the Delhi High Court that refused to consider their application for an interim injunction against SBM Gaming Network Private Limited. 

Hulm Entertainment desired to prevent SBM Gaming from engaging in certain gaming activities that Hulm claimed infringed upon its rights, and sought immediate relief before SBM could respond to the allegations. 

The key issue revolved around whether the court could grant an ex parte or ad interim injunction without providing the opposing party a prior opportunity to be heard.

The Delhi High Court observed that, according to the ruling in Dabur India Ltd. v. Emami Ltd., courts should generally avoid granting ad interim or ex parte relief if the defendant has not been given a chance to respond, especially when the defendant’s product or activity has been in the market for some time. 

The Court cited Dabur India to emphasize the importance of fairness and the necessity of recording reasons before granting such relief, advocating for providing parties with a preliminary opportunity to oppose the injunction unless exceptional circumstances justify otherwise.

The Court analyzed whether the principles outlined in Dabur India restrict courts from granting urgent relief when circumstances demand it. The Court clarified that Dabur India does not prohibit such relief, provided that the circumstances justify it. 

It emphasized that the main focus should be on whether the case warrants immediate action and whether the applicant has established sufficient grounds for urgent relief, rather than rigidly following a rule that prior notice is always necessary.

Ultimately, the Court remanded the matter back to the single judge to reconsider the application for interim relief after ensuring that the principles of fairness and adequate opportunity to respond were maintained. The Court cautioned that grant or denial of such relief should be made based on the facts and merits of the case, balancing the interests of the parties and the public.

Hulm Entertainment Pvt Ltd Vs SBM Gaming Network Private Limited
Date of Order: October 11, 2023
Case No.: FAO (COMM) 209/202
Judge: Hon'ble Justice Yashwant Varma and Hon'ble Justice Dharmesh Sharma