K. Mangayarkarasi Vs N. J. Sundaresan

K. Mangayarkarasi Vs N. J. Sundaresan: January 9, 2025: Special Leave Petition (CIVIL) No. 13012 of 2025:2025 INSC 687:Supreme Court of India:Hon'ble Justice J.B. Pardiwala

Facts:

The petitioners, K. Mangayarkarasi and others, are proprietors of the trademark "SRI ANGANNAN BIRIYANI HOTEL." The respondent, N. J. Sundaresan, filed a suit in the Commercial Court at Coimbatore seeking a permanent injunction to restrain the petitioners from using the trademark and claiming damages for unauthorized use. The respondent also filed an application under Section 8 of the Arbitration and Conciliation Act, 1996, seeking to refer the dispute to arbitration, citing an arbitration clause in a Deed of Assignment of Trade Marks.

Procedural History:

The Commercial Court allowed the arbitration reference.The petitioners challenged this order before the Madras High Court.The High Court dismissed the revision petition, upholding the arbitration clause and the lower court's decision.The petitioners then filed a Special Leave Petition (SLP) before the Supreme Court.

Issues:

Whether disputes relating to the trademark can be referred to arbitration under the contract.Whether the matter falls within the jurisdiction of the courts or arbitration.The scope of the referral court’s powers under Section 11 and Section 8 of the Arbitration Act.

Decision:

The Supreme Court upheld the arbitration clause in the Deed of Assignment and confirmed that disputes concerning rights and obligations related to the trademark are arbitrable. Thus, it dismissed the SLP, affirming the high court's order to refer the dispute to arbitration.