Yamini Manohar Vs. T.K.D. Keerthi 13.10.2023

Yamini Manohar Vs. T.K.D. Keerthi: Pre-Litigation Mediation and the Scope of Urgent Interim Relief under Section 12A of the Commercial Courts Act 2015.

Case Title: Yamini Manohar Vs. T.K.D. Keerthi

Date of Order: October 13, 2023

Case No.: Special Leave Petition (Civil) No. 32275/2023

Court: Supreme Court of India

Judges: Hon’ble Justice Sanjiv Khanna and Hon’ble Justice S.V.N. Bhatti, H.J.

Introduction:The Supreme Court of India, in Yamini Manohar vs. T.K.D. Keerthi, addressed the critical question of whether a suit seeking urgent interim relief can bypass the mandatory pre-litigation mediation under Section 12A of the Commercial Courts Act, 2015. The case provides significant clarity on the interpretation of “urgent interim relief” and the role of courts in ensuring compliance with Section 12A while preventing its misuse.

Background:Section 12A of the Commercial Courts Act, 2015, mandates pre-institution mediation for commercial disputes unless the suit contemplates urgent interim relief. This provision was introduced to promote alternative dispute resolution mechanisms, decongest courts, and expedite dispute resolution. However, the ambiguity surrounding the term “urgent interim relief” has led to inconsistent judicial interpretations, necessitating the Supreme Court’s intervention.

Nature of the Dispute:The respondent filed a commercial suit under the Commercial Courts Act, seeking urgent interim relief.

Application under Order VII Rule 11 CPC: The petitioner moved an application under Order VII Rule 11 CPC, seeking rejection of the plaint on the ground that the mandatory pre-litigation mediation under Section 12A was not exhausted.

Lower Courts' Decisions:Both the District Commercial Court and the Delhi High Court dismissed the petitioner’s application, holding that the suit contemplated urgent interim relief, thereby exempting it from pre-litigation mediation.

Supreme Court Appeal:The petitioner challenged the High Court’s decision before the Supreme Court, arguing that the plea for urgent interim relief was merely a pretext to bypass Section 12A.

Issues Raised? Is the requirement of pre-litigation mediation under Section 12A of the Commercial Courts Act mandatory in cases seeking urgent interim relief? What is the scope of “urgent interim relief” under Section 12A(1) Can courts examine the bona fides of a plaintiff’s claim for urgent interim relief to prevent misuse of Section 12A?

Petitioner’s Submissions: Misuse of Urgent Interim Relief Exception: The plaintiff’s plea for urgent interim relief was a guise to bypass the mandatory requirement of pre-litigation mediation under Section 12A.

Judicial Oversight: Courts must scrutinize whether the plea for urgent interim relief is genuine or merely a strategy to avoid mediation.

Legislative Intent: Section 12A aims to decongest courts and promote mediation, and allowing such exceptions without scrutiny would defeat its purpose. Respondent’s Submissions: Right to Urgent Relief: The plaintiff has the discretion to seek urgent interim relief, and the court’s role is limited to assessing the merits of the relief sought. Compliance with Section 12A: The plea for urgent interim relief exempts the suit from pre-litigation mediation under Section 12A. Precedents: Cited judgments that upheld the plaintiff’s prerogative to seek urgent interim relief without mandatory pre-litigation mediation.

Judgments and Citations Referred:

Petitioner’s References: Patil Automation Private Limited vs. Rakheja Engineers Private Limited (2022 SCC OnLine SC 1028): Held that Section 12A is mandatory, barring cases contemplating urgent interim relief. Kaulchand H. Jogani vs. M/s Shree Vardhan Investment (2022 SCC OnLine Bom 4752): Discussed the need for courts to assess whether a suit genuinely contemplates urgent interim relief.

Respondent’s References: Chandra Kishore Chaurasia vs. R.A. Perfumery Works Private Limited (2022 SCC OnLine Del 3529): Held that courts cannot compel pre-litigation mediation in suits involving urgent interim relief.

Provisions of Law Discussed:Section 12A, Commercial Courts Act, 2015: Mandates pre-litigation mediation unless the suit contemplates urgent interim relief. The term “contemplate” suggests that the plaintiff must deliberate and consider the need for urgent interim relief.

Order VII Rule 11 CPC:Allows rejection of plaints barred by law. Section 80(2) CPC: Permits filing of suits seeking urgent interim relief without prior notice, provided the plaintiff justifies the urgency.

Analysis and Reasoning of the Court:Mandatory Nature of Section 12A: The Court reaffirmed its earlier decision in Patil Automation, holding that Section 12A is mandatory unless the suit contemplates urgent interim relief.  Scope of “Urgent Interim Relief”: The term “contemplate” in Section 12A(1) requires the plaintiff to demonstrate the necessity for urgent interim relief. The Court emphasized that such relief must be bona fide and not a pretext to evade pre-litigation mediation.

Judicial Oversight: Courts have a limited but critical role in assessing the bona fides of a plaintiff’s claim for urgent interim relief. The Court clarified that: If the plea for urgent interim relief is found to be genuine, the suit is exempt from pre-litigation mediation. If the plea is a disguise, the court can reject the plaint under Order VII Rule 11 CPC.

Balancing Legislative Intent and Judicial Discretion: The Court balanced the legislative intent of promoting mediation with the plaintiff’s right to seek urgent relief. It cautioned against allowing plaintiffs an “absolute and unfettered right” to bypass Section 12A by merely framing their suit to include urgent interim relief.

Decision:The Supreme Court dismissed the special leave petition, holding that: The suit genuinely contemplated urgent interim relief, exempting it from pre-litigation mediation under Section 12A.  The lower courts correctly dismissed the petitioner’s application under Order VII Rule 11 CPC.

Concluding Note: This judgment provides much-needed clarity on the interplay between Section 12A of the Commercial Courts Act and the plaintiff’s right to seek urgent interim relief. By emphasizing judicial oversight, the Court has ensured that the legislative intent behind Section 12A is not defeated while safeguarding the plaintiff’s access to justice.

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Written by: Advocate Ajay Amitabh Suman: [Patent and Trademark Attorney] :High Court of Delhi

Patil Automation Private Limited Vs. Rakheja Engineers Private Limited 18.08.2022

Clarifying the Mandatory Nature of Pre-Litigation Mediation Under Section 12A of the Commercial Courts Act, 2015"

Introduction:The Supreme Court of India addressed a significant issue in M/S. Patil Automation Private Limited and Ors. vs. Rakheja Engineers Private Limited: whether pre-litigation mediation under Section 12A of the Commercial Courts Act, 2015, is mandatory. This judgment clarified the scope and applicability of Section 12A, emphasizing its role in promoting alternative dispute resolution and decongesting the judiciary. The decision has far-reaching implications for commercial litigation and procedural law in India.

Background:The Commercial Courts Act, 2015, was introduced to provide an efficient mechanism for resolving commercial disputes, thereby improving India's business environment. To further this objective, Section 12A was added through the 2018 Amendment, mandating pre-litigation mediation for commercial disputes, barring cases involving urgent interim relief. However, conflicting High Court judgments on its mandatory nature necessitated a ruling from the Supreme Court.

Nature of the Dispute:The respondent filed a commercial suit under Order XXXVII of the Code of Civil Procedure, 1908 (CPC), seeking recovery of ₹1,00,40,291/- along with 12% interest for unpaid dues arising from a commercial transaction.Appellant's Application: The appellants filed an application under Order VII Rule 11 CPC, seeking rejection of the plaint for non-compliance with Section 12A of the Commercial Courts Act, which mandates pre-institution mediation.Trial Court’s Decision:The trial court dismissed the application, holding that non-compliance with Section 12A was not fatal to the suit. It directed the parties to mediation under the District Legal Services Authority.High Court’s Ruling: The Punjab and Haryana High Court upheld the trial court’s decision, emphasizing that procedural rules are meant to advance justice and should not be used to reject suits on technical grounds.Supreme Court Appeal: The appellants challenged the High Court’s decision, arguing that Section 12A is mandatory and failure to comply renders the suit non-maintainable.Issues Raised:Is Section 12A of the Commercial Courts Act, 2015, mandatory? Can a suit filed without adhering to Section 12A be rejected under Order VII Rule 11 CPC? What is the interplay between procedural compliance and the constitutional right to access justice?

Appellants' Submissions: Mandatory Nature of Section 12A: The use of the term "shall" in Section 12A indicates a mandatory requirement. The provision aims to promote mediation and decongest courts, aligning with the legislative intent. Legislative Intent: Section 12A was introduced to enhance the ease of doing business by providing an efficient dispute resolution mechanism. Precedents: Reliance was placed on Bhagchand Dagadusa Gujrathi v. Secretary of State for India and State of Madras v. C.P. Agencies, which held procedural requirements like Section 80 CPC to be mandatory.No Prejudice to Plaintiff: Rejection of the plaint under Order VII Rule 11 does not bar the plaintiff from filing a fresh suit after complying with Section 12A.

Respondent's Submissions: Directory Nature of Section 12A: Section 12A should be interpreted as directory, not mandatory, to uphold the constitutional right to access justice. Substantial Justice Over Technicalities: Courts should prioritize substantive justice over procedural formalities. Flexibility in Mediation:Post-institution mediation, as directed by the trial court, fulfills the legislative intent of Section 12A.

Judgments and Citations Referred:

Appellants' References: Bhagchand Dagadusa Gujrathi v. Secretary of State for India (AIR 1927 PC 176): Emphasized the mandatory nature of procedural requirements. State of Madras v. C.P. Agencies (AIR 1960 SC 1309): Held that procedural compliance is essential for maintaining suits. Madiraju Venkata Ramana Raju v. Peddireddigari Ramachandra Reddy (2018 14 SCC 1): Discussed the implications of non-compliance with statutory requirements. Respondent's References: Kailash v. Nanhku (2005 4 SCC 480): Held that procedural rules should not defeat substantive justice. Ganga Taro Vazirani v. Deepak Raheja (2021 SCC OnLine Bom 195): Held Section 12A to be directory (later overruled).

Provisions of Law Discussed:Section 12A, Commercial Courts Act, 2015: Mandates pre-institution mediation for commercial disputes, barring cases involving urgent interim relief. Order VII Rule 11 CPC: Provides for rejection of plaints that are barred by law. Legal Services Authorities Act, 1987: Governs the mediation process under Section 12A. Analysis and Reasoning of the Court Evolution of Law and Insertion of Section 12A in the Commercial Courts Act, 2015 The Supreme Court, in its judgment in M/S. Patil Automation Private Limited and Ors. vs. Rakheja Engineers Private Limited, provided a detailed discussion on the legislative history and intent behind the insertion of Section 12A into the Commercial Courts Act, 2015. Below is an analysis of how the Court traced the evolution of the law and its context:

Origin of the Commercial Courts Act, 2015:The Commercial Courts Act, 2015, was introduced to address the increasing volume of commercial disputes and to improve the efficiency of the judicial system in handling such cases. The primary objectives were: To facilitate the speedy adjudication of commercial disputes. To enhance India's ranking in the "Ease of Doing Business" index by creating a robust dispute resolution framework. To ensure that commercial disputes of a specified value were adjudicated by specialized courts. Initially, the Act applied to disputes with a minimum monetary value of ₹1 crore. It also provided for the constitution of Commercial Courts at the district level and Commercial Divisions in High Courts with original jurisdiction. The 2018 Amendment to the Commercial Courts Act:Recognizing the need to further streamline dispute resolution, the legislature enacted the Commercial Courts, Commercial Division, and Commercial Appellate Division of High Courts (Amendment) Act, 2018. The Amendment introduced significant changes:

Reduction of Specified Value: The threshold monetary value for commercial disputes was reduced from ₹1 crore to ₹3 lakhs to bring more disputes under the Act's ambit. Introduction of Section 12A: This provision mandated pre-institution mediation and settlement for commercial disputes that did not seek urgent interim relief. Legislative Intent Behind Section 12A:The Court highlighted the intent behind introducing Section 12A: Decongestion of Courts: With the reduction in the monetary threshold, the volume of commercial cases was expected to increase significantly. To prevent overburdening the judiciary, Section 12A introduced a mandatory pre-litigation mediation mechanism. Promotion of Alternative Dispute Resolution (ADR): Mediation was envisioned as a faster, cost-effective, and amicable method to resolve disputes, reducing the need for litigation.Ease of Doing Business: The provision aimed to create a more business-friendly environment by ensuring that disputes were resolved efficiently and amicably wherever possible.The Statement of Objects and Reasons accompanying the 2018 Amendment emphasized that early resolution of even low-value commercial disputes would enhance investor confidence and improve India's global standing in dispute resolution mechanisms.

Text of Section 12A and Its Key Features:The Court quoted Section 12A in its entirety to analyze its language and implications: Mandatory Pre-Litigation Mediation: Section 12A(1) states that a suit “shall not be instituted” unless the plaintiff has exhausted the remedy of pre-institution mediation. Exceptions for Urgent Interim Relief: The provision allows plaintiffs to bypass mediation if the suit involves an urgent need for interim relief. Mediation Framework: The Central Government was authorized to notify Legal Services Authorities under the Legal Services Authorities Act, 1987, to facilitate the mediation process. Timelines: The mediation process must be completed within three months, extendable by two months with the consent of the parties. Settlement Status: Any settlement reached through this process has the same effect as an arbitral award under Section 30(4) of the Arbitration and Conciliation Act, 1996.

Judicial Analysis of Section 12A’s Evolution:The Court examined the evolution of procedural laws in India, including analogous provisions like Section 80 of the CPC (notice to the government before filing a suit) and Section 69 of the Indian Partnership Act (bar on suits by unregistered firms). These provisions, despite being procedural, were held to be mandatory because they served larger public policy objectives. Similarly, Section 12A was deemed mandatory because: It was introduced to further public interest by reducing litigation and promoting ADR. The language of the provision, particularly the use of the word “shall,” indicated a legislative intent to impose a mandatory obligation. Non-compliance would undermine the legislative intent and defeat the purpose of the provision.

Comparison with Section 89 CPC:The Court referred to Section 89 of the CPC, which mandates courts to explore ADR mechanisms during litigation. However, Section 12A was distinguished as it operates pre-litigation, making compliance a condition precedent for instituting a suit. The Court emphasized that Section 12A was not a mere procedural provision but a substantive one that conditions the plaintiff’s right to file a suit.

Practical Implications of Section 12A:The Court noted that Section 12A creates a structured mechanism for resolving disputes without resorting to litigation. It reduces costs, saves time, and fosters goodwill between parties. The provision also provides safeguards: If the opposite party refuses to participate in mediation, the process is deemed a "non-starter," allowing the plaintiff to proceed with litigation. The time spent in mediation is excluded from the limitation period under the Limitation Act, 1963.

Judicial Precedents on Section 12A:The Court acknowledged conflicting High Court judgments on the mandatory nature of Section 12A: Bombay High Court (Ganga Taro Vazirani v. Deepak Raheja): Initially held Section 12A to be directory. Division Bench of Bombay High Court (Deepak Raheja v. Ganga Taro Vazirani): Overruled the earlier decision, declaring Section 12A mandatory. Calcutta High Court: Delivered conflicting judgments, with some treating Section 12A as mandatory and others as directory. The Supreme Court resolved this divergence by unequivocally holding that Section 12A is mandatory.

Decision:The Supreme Court allowed the appeals, holding that:Section 12A is mandatory. Suits filed without complying with Section 12A, unless they seek urgent interim relief, are barred. Such suits are liable to be rejected under Order VII Rule 11 CPC. 

Concluding Note:This landmark judgment reinforces the importance of adhering to procedural laws aimed at promoting alternative dispute resolution. It strikes a balance between judicial efficiency and the principles of access to justice, setting a precedent for future cases involving procedural compliance.

Case Title: Patil Automation Private Limited and Ors. Vs. Rakheja Engineers Private Limited

Date of Order: August 17, 2022

Case No.: Civil Appeal No. of 2022 (Arising out of SLP (C) No. 14697 of 2021)

Court: Supreme Court of India

Judge: Justice K.M. Joseph

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney] 

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Glaverbel S.A. Vs. Dave Rose and Ors.

Credible challenges to the validity of the patent and Interim Injunction

Introduction:This case examines an intellectual property dispute concerning alleged patent infringement related to the manufacture of copper-free mirrors. The plaintiff, Glaverbel S.A., sought an interim injunction against the defendants, claiming infringement of their patented technology. The case involves complex issues of patentability, novelty, inventive step, and infringement under the Patents Act, 1970.

Background:Plaintiff: Glaverbel S.A., a Belgium-based company specializing in manufacturing and marketing glass products. Defendants: Dave Rose and Ors., involved in manufacturing and selling similar mirrors allegedly infringing the plaintiff's patent.

Subject Matter of the Patent:The disputed patent (Indian Patent No. 190380) pertains to the manufacturing of copper-free mirrors and the associated process. The key claims of the patent involve: A mirror with no copper layer, comprising:A vitreous substrate. Application of materials like palladium, bismuth, titanium, or other specified metals. A silver coating layer optionally with additional elements (e.g., tin or silane). Protective lead-free paint layers covering the silver layer.The process for manufacturing the mirror includes:Sensitization: Treating the glass surface with a sensitizing solution (e.g., tin chloride).Activation: Using solutions containing ions of metals like palladium, bismuth, or zinc.Silvering: Coating the activated surface with a silvering solution.Protective Layering: Applying one or more lead-free protective paint layers.The patent claims novelty in eliminating the copper layer, resulting in enhanced durability, corrosion resistance, and adhesion of the silver layer.

Cited Prior Art: The defendants cited several prior art references to argue that the patent lacked novelty and inventive step. Key prior art included:Buckwalter (US Patent 4285992):Taught a process for preparing improved silvered glass mirrors by treating the glass surface with a tin or palladium solution before silvering.Added lanthanide rare earth ions to improve corrosion resistance and adhesion.Included a copper layer over the silver, differing from the plaintiff’s claim of no copper layer.Franz (US Patent 3798050):Related to catalytic sensitization of substrates for metallization.Used palladium chloride and tin chloride solutions to improve adhesion and uniformity of metallic films.Focused on electroless plating and did not specifically address mirrors.Orban (US Patent 4643918):Described a process for metal coating fiberglass filaments.Used palladium chloride or tin chloride for activation, followed by metallization with various metals, including copper, palladium, and gold.Greenberg (US Patent 3978271):Concerned with depositing metallic silver and nickel on transparent articles.Included sensitization with tin salts and activation with palladium chloride.Shipley Patent (GB Patent 929799):Discussed metal deposition using tin chloride or similar catalysts to form nucleating centers for deposition of metals like nickel, cobalt, copper, and silver.Minjer & Boom Research Paper:Related to nickel plating, discussing reaction mechanisms during electroless plating of glass surfaces.Did not directly relate to manufacturing copper-free mirrors.

Principle of Law Applied:Novelty and Anticipation (Section 2(1)(j) and (l) of Patents Act, 1970):A patent must present an invention that is novel and not anticipated by prior art.Anticipation is determined if the prior art discloses the entire invention in substance or essential elements.Inventive Step (Section 2(1)(ja)):The invention must involve a technical advancement or economic significance compared to prior art and not be obvious to a person skilled in the art.Balance of Convenience (Interim Relief Principles):Temporary relief is granted if the plaintiff demonstrates a prima facie case, balance of convenience favors them, and irreparable harm would occur otherwise.

Application of Principles to the Patent and Prior Art:Novelty and Anticipation:Defendants’ Argument: The processes in Buckwalter, Franz, and other prior art disclosed similar steps, such as sensitization with tin chloride, activation with palladium chloride, and application of silver coatings. These elements were known in the industry and lacked novelty.Judge’s Observation: The cited prior art indicated that the foundational processes (e.g., activation and sensitization) and benefits (e.g., corrosion resistance, improved adhesion) were already well-documented. Buckwalter’s patent explicitly described similar corrosion-resistant processes, albeit with a copper layer. This undermined the claim of novelty.

Analysis:Technical Complexity: The court highlighted the technical nature of the dispute, necessitating a trial to examine evidence comprehensively. Global Context: Reliance on international precedents and decisions underscores the interconnected nature of patent jurisprudence. Balancing Rights: The court avoided restraining the defendants prematurely, emphasizing the need to protect both parties’ commercial interests.

Judgment: No Interim Injunction: Held that the defendants raised credible challenges to the validity of the patent. Observed that the German Federal Court's rejection of similar claims supported the lack of novelty and inventive step. Recognized international comity, emphasizing respect for foreign judicial decisions. Prima Facie Observations:Declined to rule conclusively on the patent's validity at the interlocutory stage.ound insufficient evidence to tilt the balance of convenience in the plaintiff's favor.

Conclusion:The case emphasizes the importance of substantiating patent claims with robust evidence of novelty and inventive steps. While the plaintiff presented a prima facie case, the defendants raised substantial doubts regarding the patent's validity, preventing an interim injunction.

Case Title: Glaverbel S.A. Vs. Dave Rose and Ors.

Date of Order: January 27, 2010

Case No.: I.A. No. 3756/2007 in CS (OS) No. 594/2007

Neutral Citation: MANU/DE/0205/2010

Court: High Court of Delhi

Judge: Hon’ble Mr. Justice Manmohan Singh

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Novartis AG Vs Union of India

Novartis AG Vs Union of India:Test of Enhanced Efficacy under Section 3 (d) of Patent Act 1970 in relation to pharmaceutical Preparation

Case Title: Novartis AG vs Union of India & Ors.

Date of Order: April 1, 2013

Case No.: Civil Appeal Nos. 2706-2716 of 2013

Neutral Citation: AIR 2013 SUPREME COURT 1311

Name of Court: Supreme Court of India

Name of Judge: Ranjana Prakash Desai, Aftab Alam, H. J.

Introduction :This case primarily revolves around the interpretation and application of section 3(d) of the Patents Act, 1970, in relation to the patentability of a beta crystalline form of Imatinib Mesylate, a drug used to treat chronic myeloid leukemia. The Supreme Court of India had to decide whether this new crystalline form of the drug met the necessary requirements for patentability under Indian patent law, particularly in light of the TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement.

Background:Novartis AG, a pharmaceutical company, filed an application for a patent for the beta crystalline form of Imatinib Mesylate in 1998. The drug, marketed under the names Glivec and Gleevec, is an important cancer treatment. India’s patent regime, however, had undergone significant reforms in 2005, including the introduction of section 3(d), which aimed to prevent "evergreening" of patents, particularly in the pharmaceutical industry. This provision disallows patents for minor modifications of known substances unless they show enhanced efficacy.

Novartis AG sought a patent for a new form of Imatinib Mesylate, claiming that the beta crystalline form exhibited superior stability, better processability, and lower hygroscopicity compared to the alpha crystalline form. The application, filed in 1998, was rejected by the Indian Patent Office under section 3(d), as the change was considered a mere modification of an existing substance with no substantial increase in efficacy.

Historical Development of Patent Law :The Supreme Court of India provided a detailed account of the evolution of patent law in India, particularly in the context of pharmaceuticals. This historical analysis was essential to understand the legislative intent behind the Patents Act, 1970, and its subsequent amendments, especially the introduction of Section 3(d). Below is an overview of the historical development as discussed in the judgment:

Pre-Independence Era: Patents and Designs Act, 1911:The patent regime in India during British rule was governed by the Patents and Designs Act, 1911. This law allowed for both product and process patents, including in pharmaceuticals and chemicals. However, the system was criticized for disproportionately benefiting foreign entities. It stifled innovation in India and made medicines expensive and inaccessible. The Indian pharmaceutical industry remained underdeveloped, with domestic entities struggling to compete with multinational corporations (MNCs).

Post-Independence Review of Patent Law:After Independence, the government recognized the need for a patent regime tailored to India’s socio-economic conditions.

Tek Chand Committee (1949–1950):The government constituted a committee under Justice (Dr.) Bakshi Tek Chand to review the 1911 Act.Findings: The patent law failed to stimulate indigenous innovation. Patents for food, medicines, and surgical devices should ensure affordability and availability to the public. Recommendations included limiting abuse of patent rights, introducing compulsory licensing, and revoking patents that were not adequately exploited in India. Result: Based on these recommendations, the 1911 Act was amended in 1950 and 1952 to introduce compulsory licensing provisions for food and medicines.

Justice N. Rajagopala Ayyangar Committee (1957–1959): A second committee, headed by Justice N. Rajagopala Ayyangar, conducted a comprehensive review of the patent system.Findings: The 1911 Act primarily benefited foreign entities and did not encourage domestic research or industrial development. A large majority of patents in India were held by foreigners, often without significant economic or technological benefits for India.Recommendations: Retain process patents but exclude product patents for food, medicines, and chemicals to make essential products affordable and accessible. Introduce strict working requirements to prevent abuse of patents.Create a patent law aligned with India’s developmental needs. Result: These recommendations became the basis for the Patents Act, 1970.

Patents Act, 1970:Enacted to replace the 1911 Act, the Patents Act, 1970 was a landmark reform that redefined India’s patent regime.

Exclusion of Product Patents: Section 5 explicitly barred product patents for food, medicines, and chemicals. Only process patents were allowed, ensuring that generic manufacturers could produce affordable versions of drugs using alternate methods.Compulsory Licensing: Strengthened provisions to prevent monopoly abuse and ensure public access to essential products.Shortened Patent Duration::The term for process patents in pharmaceuticals and food was reduced to five years from the date of sealing or seven years from the date of filing, whichever was earlier.Impact: This law catalyzed the growth of India’s domestic pharmaceutical industry, enabling Indian companies to develop affordable generic medicines. By the 1990s, Indian pharmaceutical firms accounted for a significant share of the domestic market and emerged as global leaders in generic drug production.

TRIPS Agreement and its Impact:India became a founding member of the World Trade Organization (WTO) in 1995, which included obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).TRIPS Requirements: Mandated the introduction of product patents in all fields, including pharmaceuticals, by 2005. Required provisions for patent protection of at least 20 years from the filing date.

India’s Transitional Arrangements: India used the transitional period allowed under TRIPS (1995–2005) to delay the implementation of product patents for pharmaceuticals and agricultural chemicals. During this period, India amended the Patents Act thrice:

1999 Amendment: Introduced the "mailbox system" for filing product patent applications.. 2002 Amendment: Enhanced intellectual property rights protection to align with TRIPS. 2005 Amendment: Reintroduced product patents in pharmaceuticals and agricultural chemicals but incorporated safeguards like Section 3(d).

Introduction of Section 3(d):Section 3(d) was introduced in the 2005 Amendment to prevent "evergreening" of patents.Purpose: To ensure that patents are granted only for genuine innovations that demonstrate enhanced efficacy, not for minor modifications of existing drugs. To balance the TRIPS obligations with India’s need to ensure access to affordable medicines. The Supreme Court emphasized that Section 3(d) embodies the Indian legislature's conscious decision to adopt a higher threshold of patentability, particularly for pharmaceuticals.

Effect of the 1970 Act and Subsequent Developments:The Supreme Court noted the remarkable growth of the Indian pharmaceutical industry due to the 1970 Act. Statistics Highlighted: The market share of Indian companies rose from 30% in 1970 to over 75% by 2005. India became known as the “pharmacy of the world,” exporting affordable generic medicines globally.The Supreme Court traced the evolution of India’s patent law to underscore the unique socio-economic context in which these laws were framed. The historical trajectory demonstrated India’s deliberate policy choices to balance innovation with public health. The Patents Act, 1970, and the subsequent introduction of Section 3(d) were critical in shaping a patent regime that prioritized affordable access to medicines while adhering to international obligations under TRIPS.

Procedural Background:The procedural trajectory of the case spanned several stages, from the application at the Controller of Patents to the final judgment by the Supreme Court of India. Below is the detailed procedural background:

Application at the Controller of Patents:Patent Application: Novartis AG filed Patent Application No. 1602/MAS/1998 on July 17, 1998, seeking protection for the beta crystalline form of Imatinib Mesylate, used for treating chronic myeloid leukemia.Grounds for Opposition: The application faced five pre-grant oppositions filed under Section 25(1) of the Patents Act, 1970, by various entities, including generic manufacturers and public interest groups. The oppositions argued that: The invention lacked novelty and inventive step. It did not qualify as patentable under Section 3(d) as there was no significant enhancement in therapeutic efficacy.Decision of the Controller (January 25, 2006): The Assistant Controller of Patents rejected the application based on: Anticipation of the invention by prior publication (Zimmermann patent). Obviousness to a person skilled in the art. Non-patentability under Section 3(d).Invalidity of the priority date claimed (July 18, 1997). The decision was issued in five separate orders against each pre-grant opposition.

Writ Petitions in the Madras High Court: Novartis AG filed five writ petitions challenging the Assistant Controller’s decision. Additionally, Novartis AG and its Indian power of attorney holder filed two writ petitions challenging the constitutional validity of Section 3(d), contending that it violated Article 14 of the Constitution and India’s obligations under TRIPS.

Transfer to the Intellectual Property Appellate Board (IPAB): After the establishment of the IPAB, the five writ petitions against the Controller's orders were transferred to the IPAB for adjudication, as per the High Court's order dated April 4, 2007.Judgment on Section 3(d) by Madras High Court (August 6, 2007): The constitutional validity of Section 3(d) was upheld by the High Court, which stated that the provision aimed to prevent "evergreening" of patents and ensure access to affordable medicines. Novartis AG did not pursue the matter further regarding this judgment.

Appeals before the Intellectual Property Appellate Board (IPAB)Hearing and Decision (June 26, 2009): The IPAB reversed the Controller’s findings on novelty, inventive step, and the priority date. It held that: The invention satisfied the tests of novelty and non-obviousness. The claimed priority date (July 18, 1997) was valid. However, the IPAB dismissed the appeal, stating that the beta crystalline form of Imatinib Mesylate did not meet the requirements of Section 3(d), as the claimed invention failed to demonstrate enhanced therapeutic efficacy. The IPAB also suggested that the high pricing of the drug during Novartis’s exclusive marketing rights (EMR) period was a factor under Section 3(b), as it could create public disorder by making life-saving drugs unaffordable.

Special Leave Petitions (SLPs) before the Supreme Court:Direct Approach to the Supreme Court: Novartis AG filed Special Leave Petitions (SLPs) under Article 136 of the Constitution, bypassing the High Court, citing the urgency of the case as the patent’s term would expire in July 2018. The respondents initially opposed this direct appeal, but later consented due to the case's importance.

Hearing of Appeals:The Supreme Court heard arguments from all parties, including Novartis AG, generic manufacturers, and public interest groups like the Cancer Patients Aid Association. The Court considered the broader implications of the case, including: India’s commitment to public health and affordable access to medicines..International obligations under the TRIPS agreement. The legislative intent behind Section 3(d).

Issues Raised: Whether the beta crystalline form of Imatinib Mesylate qualifies as a new invention under section 2(1)(j) and (ja) of the Patents Act? Whether section 3(d) of the Patents Act, which disallows patents on minor modifications unless they demonstrate enhanced efficacy, applies to this case? 

Submissions of Parties:Novartis AG: The company argued that the beta crystalline form of Imatinib Mesylate was a novel and non-obvious invention, and its superior properties in terms of stability and processability justified the grant of a patent. They also challenged the applicability of section 3(d), contending that it violates India's TRIPS obligations.

Union of India & Respondents: The Indian government and public interest groups such as the Cancer Patients Aid Association argued that granting a patent on the beta crystalline form would lead to monopolistic pricing, making the drug unaffordable to many, particularly in India, where affordable generic versions are crucial. They emphasized the need for patent law reforms to ensure that essential medicines remain accessible to the public.

Provisions of Law Discussed: Section 2(1)(j) and (ja): Definitions of “invention” and “inventive step.” Section 3(d): Prohibition on patents for minor modifications of known substances unless they show enhanced efficacy.

Key Elements of the Test for Enhanced Efficacy:

Therapeutic Efficacy is the Benchmark: The Court held that for a new form of a known substance to be patentable under Section 3(d), it must demonstrate enhanced therapeutic efficacy. This means that the new form must show a tangible improvement in the therapeutic effect provided by the substance in treating or preventing a disease.Comparison with the Known Substance: The new form must be compared with the previously known substance (e.g., the free base or earlier forms) to determine whether there is a significant enhancement in therapeutic outcomes.Physical Properties Alone Are Insufficient: Improvements in physical properties like thermodynamic stability, bioavailability, processability, or flow characteristics are insufficient unless they lead to a demonstrable enhancement in therapeutic efficacy.The Court rejected Novartis’s argument that higher bioavailability (absorption in the body) alone constituted enhanced efficacy, noting that bioavailability does not necessarily translate into better therapeutic outcomes.Objective and Quantifiable Evidence Required: The applicant must provide clear, objective, and scientifically quantifiable evidence to substantiate claims of enhanced therapeutic efficacy. Merely asserting or relying on improvements in physical properties or general claims of efficacy enhancement without robust data does not meet the requirement.Therapeutic Efficacy Depends on the Nature of the Substance: The Supreme Court noted that the determination of therapeutic efficacy will vary depending on the nature of the substance. For pharmaceutical drugs, the focus is on the direct therapeutic impact on the body and its ability to cure, prevent, or mitigate a disease.

Detailed Analysis and Reasoning of the Judge:Court’s Observations on Novartis's Claims:

Claims of Beta Crystalline Form: Novartis argued that the beta crystalline form of Imatinib Mesylate had superior physical properties, including stability and reduced hygroscopicity, and higher bioavailability compared to the free base form. However, the Court noted that Novartis failed to demonstrate how these improved properties translated into enhanced therapeutic efficacy for treating chronic myeloid leukemia.Insufficient Evidence: The affidavits and data provided by Novartis did not conclusively establish that the beta crystalline form offered a better therapeutic effect compared to the free base form of Imatinib. The Court observed that the therapeutic efficacy of the free base form was already well-known, and Novartis could not prove that the beta crystalline form had a superior effect in treating the disease.Interpretation of Section 3(d): The Court stated that the legislative intent behind Section 3(d) is to prevent "evergreening" by ensuring that patents are granted only for genuine innovations that contribute significantly to therapeutic efficacy. The Court emphasized the importance of ensuring access to affordable medicines while promoting innovation.

Key Statement from the Judgment:The Court articulated the test for enhanced efficacy as follows:The test of enhanced efficacy in the context of Section 3(d) would depend upon the function, utility, or purpose of the product under consideration. In the case of a medicine, the test of efficacy can only be applied with reference to its therapeutic efficacy."

Decision:The Supreme Court dismissed Novartis AG's appeals and upheld the rejection of the patent application for the beta crystalline form of Imatinib Mesylate. The Court ruled that the invention did not meet the standards of patentability under Indian law, particularly section 3(d), and affirmed the importance of ensuring that patent laws do not hinder access to essential medicines.

Concluding Note:The case highlights the tension between intellectual property rights and public health concerns in the context of patent law. It underscores the importance of ensuring that patent regimes, while promoting innovation, do not impede access to life-saving medicines, particularly in developing countries like India. The judgment reinforces India's approach to preventing evergreening in the pharmaceutical industry, thereby safeguarding public health while honoring international obligations under TRIPS.

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Advocate Ajay Amitabh Suman,[Patent and Trademark Attorney],High Court of Delhi

Biotyx Medical (Shenzhen) Co. Ltd vs. The Assistant Controller of Patents and Designs

Five Steps to be followed while evaluating Inventive Sep in a Patent

Introduction:This case concerns the rejection of Indian Patent Application No. 201817029244 by the Assistant Controller of Patents and Designs. Filed by Biotyx Medical (Shenzhen) Co. Ltd, the application pertains to an "Absorbable Iron-Based Alloy Implantable Medical Device." The rejection was on grounds of lack of novelty and inventive step under Sections 2(1)(j), 13(1)(b), and 2(1)(ja) of the Patents Act, 1970. The Delhi High Court, presided over by Hon’ble Mr. Justice Saurabh Banerjee, was tasked with evaluating the legality of the decision.

Background: The patent application was a national phase entry of a PCT application filed on August 3, 2018, claiming priority from January 8, 2016. The invention related to a medical device designed to inhibit corrosion during the early stages of implantation using a zinc-containing protector. The application was rejected on July 10, 2020, by the Assistant Controller, citing lack of novelty and inventive step. This appeal challenges the validity of that decision.

Facts of the Subject Matter Patent: The invention proposed an absorbable iron-based alloy implantable medical device comprising: Iron-Based Alloy Substrate: Provides structural support during implantation. Degradable Polymer Coating: Allows gradual degradation of the device. Zinc-Containing Protector: A layer comprising zinc or a zinc alloy, intended to delay the onset of corrosion during implantation. The innovation claimed that this specific configuration ensured the mechanical stability of the device in its early stages, which was critical for medical applications.

Issues Raised Regarding Inventive Step:Whether the invention lacked novelty under Sections 2(1)(j) and 13(1)(b)?Whether the invention involved an inventive step under Section 2(1)(ja)?Whether the Assistant Controller failed to apply a proper analytical framework to assess inventive step?

Judgments Referred and Their Context:Biswanath Prasad Radhey Shyam v. Hindustan Metal Industries Ltd. (1979) 2 SCC 511: Defined the test for inventive step as requiring technical advancement or economic significance that is not obvious to a person skilled in the art (PSITA). Hoffmann-La Roche Ltd. & Anr. v. Cipla Ltd. 2015 DHC: Established a five-step test to evaluate inventive step. Manohar v. State of Maharashtra AIR 2013 SC 681: Emphasized the need for reasoned decision-making to satisfy the principles of natural justice.Sankalp Rehabilitation Trust v. Hoffman La Roche (OA/8/2009/PT/CH, 2012): Discussed the role of common general knowledge in determining inventive step.

Provisions of Law Discussed:Section 2(1)(j): Defines an invention as a new product or process involving an inventive step and capable of industrial application. Section 2(1)(ja): Elaborates on inventive step, requiring technical advancement or economic significance. Section 13(1)(b): Mandates examiners to ensure that the claimed invention is not anticipated in prior art.

Judge’s Discussion on Inventive Step:  The court identified deficiencies in the Assistant Controller’s reasoning and applied the five-step test outlined in Hoffmann-La Roche Ltd. to assess inventive step: Identify PSITA: The court noted that the Assistant Controller failed to clearly define the PSITA for this field.Determine the Inventive Concept: The key inventive concept was the use of zinc-based protection to delay corrosion. Assess Common General Knowledge: Prior arts D2-D5 disclosed the use of zinc oxide for corrosion inhibition but did not cover the specific use of zinc or zinc alloy in direct contact with the iron-based substrate. Evaluate Differences from Prior Art: The court highlighted the technical distinction between zinc-based protection in the invention and zinc oxide coatings in prior art.

Assess Obviousness: The court found no evidence that the invention was obvious to a PSITA, as prior art did not suggest using zinc or zinc alloys in this specific manner.

Deficiencies in Rejection Order: The rejection order lacked sufficient technical reasoning. The Assistant Controller relied on hindsight reasoning without a structured inventive step analysis. Procedural lapses, such as inadequate consideration of submissions, violated natural justice principles.

Decision:The Delhi High Court set aside the rejection order and remanded the application to the Assistant Controller for reconsideration with the following directions:Re-evaluate the inventive step using recognized tests.Issue a reasoned decision addressing all aspects of novelty and inventive step.Conclude the proceedings within four months of granting a hearing.

Concluding Note:This case highlights the importance of adherence to structured analytical frameworks in patent rejection cases. It underscores the judiciary's role in ensuring accountability and procedural fairness in administrative decisions. The judgment reinforces the need for reasoned and scientifically grounded decisions to foster innovation and protect intellectual property rights.

Case Title: Biotyx Medical (Shenzhen) Co. Ltd vs. The Assistant Controller of Patents and Designs

Date of Order: September 20, 2024

Case No.: C.A. (COMM.IPD-PAT) 403/2022

Neutral Citation: 2024:DHC:

Court: High Court of Delhi

Judge: Hon’ble Mr. Justice Saurabh Banerjee

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

B. Braun Melsungen AG Vs Rishi Baid

Patent Infringement and Suppression of fact by Plaintiff

Introduction:This case involves a dispute over patent infringement and intellectual property rights related to safety I.V. catheters. The plaintiff, B. Braun Melsungen AG, alleged that the defendants infringed on their registered patent. The case primarily revolved around the validity of the patent, the allegations of infringement, and the legal grounds for granting an interim injunction.

Background:The plaintiff, B. Braun Melsungen AG, is a German company specializing in medical devices. The second plaintiff is its Indian subsidiary, B. Braun Medical (India) Pvt. Ltd. The defendants include Poly Medicure Limited, an Indian company, and its directors. The plaintiffs claim to own patent No. 210062, which pertains to safety I.V. catheters with self-activating needle stick protection.

Plaintiffs' Allegation: The plaintiffs sought an interim injunction to prevent the defendants from manufacturing, selling, or distributing safety I.V. catheters that allegedly infringed on their patent.

Defendants' Defense: The defendants challenged the validity of the patent, citing prior art and alleging procedural irregularities in its grant. They argued that the plaintiffs were aware of their manufacturing activities long before the suit was filed.

Key Patent Claim: The plaintiffs relied heavily on Claim 28 of their patent, which detailed the structural and functional elements of the safety I.V. catheter.

Issues Raised: Whether the plaintiffs' patent No. 210062 was valid and enforceable? Whether the defendants' products infringed the plaintiffs' patent? Whether the plaintiffs suppressed material facts regarding the defendants' prior activities?

Plaintiffs' Submissions: The plaintiffs argued that their patent was valid and protected a unique invention. They emphasized the novelty of their safety I.V. catheters and claimed that the defendants' product incorporated the elements of Claim 28. They referred to the amended Section 48 of the Patents Act, 1970, which grants exclusive rights to prevent infringement. The plaintiffs highlighted prior judgments, including: Bajaj Auto Ltd. v. TVS Motor Company Ltd.: Emphasizing the presumption of validity for granted patents.American Cyanamid Co. v. Ethicon Ltd.: Establishing principles for granting interim injunctions.

Defendants' Submissions:The defendants argued that the patent was invalid due to prior art and lack of inventiveness, citing U.S. Patent No. 5,135,504 as an example. They claimed procedural irregularities, including discrepancies in the amendment and grant dates of the patent. They contended that their product was distinct from the plaintiffs' and developed independently through their own research. They accused the plaintiffs of suppressing material facts about their knowledge of the defendants' activities.

Judgments Referred and Context:B.P. Radhe Shyam v. Hindustan Metal Industries: Highlighted the importance of novelty and inventive step in patent validity.Monsanto Co. v. Coromandal Indag Products (P) Ltd.: Discussed grounds for revocation under Section 64 of the Patents Act.Niky Tasha India Pvt. Ltd. v. Faridabad Gas Gadgets Pvt. Ltd.: Addressed the grant of interim injunctions for recent patents.

Provisions of Law Discussed:

Section 48, Patents Act, 1970: Rights of patentees. Section 64, Patents Act, 1970: Grounds for revocation of patents. Section 107, Patents Act, 1970: Defenses in infringement suits.

Analysis and Reasoning of the Judge:

Validity of Patent: The court noted that the plaintiffs' patent faced serious challenges regarding its validity due to prior art and procedural issues.

Suppression of Facts: The plaintiffs failed to disclose material facts, including their knowledge of the defendants' manufacturing activities.

Decision: The court rejected the plaintiffs' prayer for an interim injunction, directing the defendants to maintain records of their manufacturing and sales activities during the pendency of the suit.

Concluding Note: This case underscores the importance of establishing the validity of a patent before seeking injunctive relief. It highlights the need for transparency in pleadings and the impact of prior art on patent enforcement.

Case Title: B. Braun Melsungen AG & Ors. Vs. Rishi Baid & Ors.

Date of Order: 15.04.2009

Case No.: IA 1234/2008 in CS(OS) 186/2008

Neutral Citation: MANU/DE/0376/2009

Court: High Court of Delhi

Judge: Hon’ble Mr. Justice Badar Durrez Ahmed

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

UPL Limited Vs. Pradeep Sharma

Patent Infringement and Trivial Variation in Defendant Composition

Introduction:This case revolves around the alleged infringement of patents owned by UPL Limited concerning a unique herbicidal composition and process. UPL sought interim relief through an injunction restraining the defendants from manufacturing, selling, or dealing with products allegedly infringing their patents.

Background:UPL Limited is engaged in the manufacture and sale of various agricultural products, including herbicides and weedicides. The dispute pertains to three patents owned by UPL: IN 194225 - A process patent for preparing a chemically stable synergistic herbicidal composition. IN 206130 - A product patent for a chemically stable synergistic herbicidal composition. IN 244551 - A combined product and process patent.These patents claim a stable synergistic composition of Metsulfuron Methyl and Sulfosulfuron, two herbicides effective against specific types of weeds. The plaintiff claimed that the defendants infringed these patents by applying for the registration of a similar product under the Insecticides Act, 1968.

Brief Facts of the Case:UPL Limited claimed that their composition effectively targeted both grassy and broadleaf weeds using Metsulfuron and Sulfosulfuron in specified proportions with excipients such as stabilizers and dispersants. The defendants, Pradeep Sharma and others, applied for registration of a product containing a similar combination of these herbicides. UPL sought an interim injunction to prevent the defendants from manufacturing or marketing the product during the pendency of the case.

Issues Raised: Whether the defendants’ product infringed UPL’s registered patents? Could the defendants challenge the validity of UPL's patents in their defense? Did the defendants’ product differ materially from UPL’s patented composition? Was UPL entitled to an interim injunction?

Plaintiff's Submissions (UPL Limited): UPL argued that its patents covered a unique and novel composition that was effective against both types of weeds. It claimed that the defendants’ product contained all essential elements of UPL’s patented composition, differing only in minor details, such as the absence of a stabilizer. UPL cited prior cases, including F. Hoffmann-La Roche Ltd. v. Cipla Ltd., to assert that minor variations in composition do not exempt a product from infringement. UPL emphasized that their patents had been upheld in pre-grant and post-grant oppositions, and similar licenses were granted to other companies.

Defendant's Submissions: The defendants argued that their product did not infringe UPL's patents as it differed in composition, lacking some essential elements like stabilizers and specific excipients. They contended that UPL's patents lacked novelty and were based on prior art, including studies by Dr. C.P. Singh, which suggested sequential rather than combined use of the herbicides. The defendants questioned the validity of UPL’s patents under sections of the Patents Act, claiming obviousness, lack of inventive steps, and prior public knowledge. They argued against granting an injunction, stating that UPL had concealed material facts.

Judgments Referred and Their Context:F. Hoffmann-La Roche Ltd. v. Cipla Ltd: Established principles for claim construction and determining infringement. Applied to compare UPL's patents with the defendants’ product.Smithkline Beecham Plc v. Generics (UK) Ltd:Addressed the concept of "obviousness" in patent law.Shogun Organics Ltd. v. Union of India:Clarified that the Insecticides Registration Committee lacks jurisdiction over patent disputes.Bristol-Myers Squibb Co. v. J.D. Joshi and Anr.:Highlighted that balance of convenience favors protecting patented inventions when infringement is likely.

Reasoning of the Judge:The court held that the defendants’ product prima facie infringed UPL's patents since its composition was largely identical, with minor differences deemed non-essential.Dr. C.P. Singh's prior research was found to contradict UPL’s patented invention and could not negate the novelty of the patents.The court noted that the defendants failed to prove invalidity of the patents. A pre-grant opposition had already been dismissed, and a settlement with another challenger, Gharda Chemicals, had affirmed UPL’s rights.The court emphasized that the Insecticides Registration Committee could not decide on patent matters.

Decision:The court granted an interim injunction restraining the defendants from manufacturing, selling, or dealing with products infringing UPL’s patents during the pendency of the suit.

Concluding Note:This case underscores the importance of patent protection in fostering innovation. The court reaffirmed that minor differences in composition do not absolve parties from infringement when the core claims of a patent are violated. The judgment also clarified the roles of regulatory bodies and courts in handling patent disputes.

Case Title: UPL Limited Vs. Pradeep Sharma and Ors.

Date of Order: February 21, 2018

Case Number: IA 9585/2017 in CS (Comm.) 556/2017

Neutral Citation: MANU/DE/0772/2018

Court: High Court of Delhi

Judge: Hon'ble Justice Mukta Gupta

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Ravinder Singh & Sons Vs Evergreen Publications (India) Ltd.

Copyright Infringement in relation to Literary Work in Question Paper

Introduction:This case addresses a copyright infringement dispute concerning the reproduction and publication of ICSE Class-X question papers. The central issue is whether the defendant's publication of a guidebook containing verbatim question papers with answers infringes upon the plaintiff's copyright.

Background:The plaintiff, Evergreen Publications (India) Ltd., acquired exclusive copyright in ICSE Class-X question papers for the years 2015, 2016, and 2017 for ₹1.35 crores. The defendant, Ravinder Singh & Sons, published a guidebook containing identical question papers with answers. This led to the filing of a suit by the plaintiff seeking an interim injunction against the defendant for alleged copyright infringement.

Brief Facts of the Case:The plaintiff acquired exclusive rights to the question papers under a Memorandum of Understanding (MoU) with the ICSE Board. The defendant's guidebook reproduced the question papers verbatim, including punctuation, without adding original content or additional modules. The plaintiff sought an interim injunction to restrain the defendant from printing, publishing, or selling the infringing guidebook. The trial court granted the injunction, prompting the defendant to appeal.

Issues Raised: Whether the reproduction of question papers in the defendant's guidebook constitutes copyright infringement. Whether question papers qualify as "original literary works" under the Copyright Act, 1957. Whether the defendant's work is transformative and falls under "fair use."

Plaintiff's Submissions:The question papers are original literary works protected under the Copyright Act, 1957. The defendant's verbatim reproduction of question papers, without adding original or creative content, infringes the plaintiff's copyright. Reliance was placed on Rupender Kashyap v. Jiwan Publishing, which held that publishing answer books using copyrighted question papers amounts to infringement.

Defendant's Submissions: The guidebook serves an educational purpose, providing answers to the questions for the benefit of students. The reproduction falls under "fair use" as it aims to assist weaker students in understanding the questions. Cited Syndicate of the Press of the University of Cambridge Vs. B.D. Bhandari to argue that providing answers to questions in textbooks does not amount to infringement.

Judgments Referred:Eastern Book Company v. D.B. Modak (AIR 2008 SC 809): Established that copyright protects original works created with skill, judgment, and labor.Syndicate of the Press of the University of Cambridge v. B.D. Bhandari (2011 (47) PTC 244 (Del.)): Held that derivative works, such as guidebooks, must add transformative value to avoid infringement.Rupender Kashyap Vs. Jiwan Publishing: Reiterated that reproducing question papers in answer books constitutes infringement.Ladbroke (Football) Ltd. v. William Hill (Football) Ltd. ([1964] 1 All ER 465): Affirmed that compilations demonstrating skill, judgment, and labor are protected under copyright law.

Reasoning of the Judge:

The Court upheld the trial court's decision, reasoning as follows:

Originality of Question Papers: The court recognized question papers as original literary works, given the skill, labor, and creativity involved in their preparation.

Infringement: The defendant's guidebook replicated the question papers verbatim, without adding transformative value or originality, constituting infringement.

Fair Use Doctrine: The defendant failed to establish that the guidebook was transformative or served a purpose distinct from the original work.

Public Authority: The ICSE Board, discharging public functions, granted exclusive copyright to the plaintiff, reinforcing the protection of the question papers.

Decision:The appeal was dismissed, and the interim injunction against the defendant was upheld. The defendant was restrained from printing, publishing, or selling the infringing guidebook.

Concluding Note:This case reinforces the protection of copyrighted works under the Copyright Act, 1957, emphasizing that even question papers qualify as original literary works. It underscores the importance of originality and the transformative nature of derivative works to avoid infringement. The judgment also highlights the judiciary's commitment to preserving the integrity of intellectual property rights.

Case Title: Ravinder Singh & Sons Vs. Evergreen Publications (India) Ltd. & Anr.

Date of Order: January 10, 2018

Case Number: FAO 235/2017

Neutral Citation: 2018 DHC 269

Court: High Court of Delhi at New Delhi

Judge: Hon’ble Mr. Justice Najmi Waziri

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Neeraj Saran Srivastava Vs Loudon Owen

Condonation of delay in filing the Replication

Introduction:This case pertains to procedural compliance under the Delhi High Court (Original Side) Rules, 2018. The primary issue revolves around whether the plaintiffs’ replication, filed with a minor procedural delay, could be condoned or whether it should be struck off as sought by the defendants.

Background:The litigation stems from summons issued to the defendants in a commercial suit, leading to delayed filing of written statements by the defendants. Subsequently, the plaintiffs filed replications, albeit marginally beyond the prescribed timeline. Both parties filed applications: the plaintiffs sought condonation of delay, while the defendants sought to strike off the replications.

Brief Facts of the Case: Summons were issued on October 6, 2023. Defendants filed their written statements on January 30, 2024, delayed by 88 days, which were condoned on February 14, 2024, subject to costs. Plaintiffs were required to file replications by March 14, 2024. Replications were filed on March 15, 2024, delayed by one day due to personal difficulties faced by the plaintiffs' representative.Defects in the filing were notified on March 19, 2024, and cleared the same day. Further objections raised on March 21, 2024, were notified to plaintiffs on March 27, 2024. Plaintiffs filed applications for condonation of delay on April 2, 2024. Defendants argued procedural delays violated strict timelines, seeking to strike off the replications.

Issues Raised: Can a replication filed marginally beyond the prescribed timeline be condoned under procedural rules? Does failure to file condonation applications within seven days render the replication non-est? Should procedural defects in replication filing lead to striking it off despite compliance with substantive timelines?

Plaintiff Submission:Delay of one day in filing the replication was caused by personal difficulties and is excusable. Procedural defects were cured within the time prescribed by Chapter IV Rule 3 of the Delhi High Court (Original Side) Rules, 2018. Defendants, having filed their written statements with an 88-day delay, lack standing to challenge plaintiffs’ marginal delay.

Defendant Submission:: Replications filed without notarization and attestation were procedurally non-compliant. Strict adherence to procedural timelines is required under the Delhi High Court (Original Side) Rules, 2018. Applications for condonation of delay were filed beyond permissible time, necessitating striking off the replications.

Judgments Referred:A.P. Distributors v. OK Play India Pvt. Ltd., 2022 SCC OnLine SC 1512: Procedural delays in filing written statements can be condoned if filings comply substantively with rules.COSCO (India) Ltd. v. Paramsukh Nirman Pvt. Ltd., 2019 SCC OnLine Del 9633: Defects in procedural filings can be cured within an aggregate of 30 days under Chapter IV Rule 3.Friends Motel Pvt. Ltd. v. Shreeved Consultancy LLP, 2020 SCC OnLine Del 2072: Filing beyond the statutory period without valid justification cannot be condoned.Atlantech Online Services v. Google India Pvt. Ltd., 2023 SCC OnLine Del 5476: Excessive delays in filing replications beyond the statutory period justify striking off pleadings.

Reasoning of the Judge:The Court held that: Procedural defects, such as filing condonation applications beyond seven days, are curable under Chapter IV Rule 3, provided substantive timelines are adhered to. The replication, filed within the outer limit of 45 days, though delayed by one day, was re-filed and defects cured promptly. Striking off replications for minor procedural defects would contradict the principle of resolving disputes on merits.

Decision:Plaintiffs’ applications (I.A. 7655/2024 and I.A. 7656/2024) seeking condonation of delay in filing replications were allowed. Defendants’ applications (I.A. 32131/2024 and I.A. 32934/2024) seeking striking off the replications were dismissed.Concluding Note:This decision underscores the judiciary’s inclination to prioritize substantive justice over procedural technicalities. While procedural rules are essential for efficiency and fairness, minor delays, if rectified within permissible limits, should not obstruct the merits of a case.

Case Title: Neeraj Saran Srivastava & Anr. Vs. Loudon Owen & Ors.

Date of Order: January 20, 2025

Case Number: CS(COMM) 686/2023

Neutral Citation: 2025 DHC 283

Court: High Court of Delhi at New Delhi

Judge: Hon’ble Ms. Justice Mini Pushkarna

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

IMS Learning Resources Pvt. Ltd. Vs. Young Achievers

User of Trademark by Ex Franchisee, Post Termination Franchisee Use Agreement

Introduction: The legal battle between IMS Learning Resources Pvt. Ltd. and Young Achievers concerns the alleged infringement and passing-off of the trademark "IMS." The dispute highlights key issues regarding trademark rights, licensing, and the consequences of breaching agreements. This analysis examines the case's facts, legal issues, submissions, and judicial reasoning, providing a comprehensive understanding of the court's decision.

Background:IMS Learning Resources Pvt. Ltd., established in 1977, is a leading provider of coaching for competitive examinations. The plaintiff registered its trademark "IMS" across various classes and established goodwill in educational services. Young Achievers, the defendant, operated as a franchisee of IMS under agreements in 2007 and 2010. Following the termination of the franchise relationship in 2011, disputes arose over the defendant's continued use of the IMS trademark, prompting the plaintiff to file a suit for permanent injunction, infringement, and damages.

Brief Facts of the Case:Plaintiff's Operations: IMS is a prominent brand in coaching for management entrance exams and operates over 100 centers across India.Franchise Agreement: The plaintiff and defendant entered into agreements allowing the defendant to use the IMS trademark for a coaching center in Meerut.Termination: By mutual consent, the agreement was terminated on February 1, 2011, with the defendant signing an Exit Paper agreeing to cease use of the IMS trademark.Dispute: Despite the termination, the defendant continued to use the trademark, rebranded as "IMS Young Achievers," and published advertisements creating confusion among consumers.

Issues Raised:Trademark Ownership: Whether the plaintiff is the proprietor of the "IMS" trademark.Infringement: Whether the defendant's use of "IMS Young Achievers" constitutes infringement, being ex Franchisee. Passing Off: Whether the defendant's actions mislead consumers and harm the plaintiff's goodwill.

Plaintiff's Submission:The defendant admitted to signing the Exit Paper and acknowledged IMS as the plaintiff's trademark. Continued use of the mark "IMS Young Achievers" misleads consumers into believing an association with the plaintiff. The defendant's actions amount to infringement, passing off, and dilution of the plaintiff's goodwill. The defendant acted dishonestly by attempting to free-ride on the plaintiff's reputation.

Defendant's Submission: Claimed that "IMS" is a commonly used term in education and lacks distinctiveness. Asserted that the plaintiff had no prior goodwill in Meerut and the defendant's use of "IMS Young Achievers" was distinct. Argued that its clients are sophisticated and unlikely to be misled. Claimed compliance with the Exit Paper by rebranding and creating a new syllabus.

Judgments Referred and Their Context:Amritdhara Pharmacy vs. Satya Deo Gupta (1962 SCC OnLine SC 13):Established that marks must be compared as a whole to determine the likelihood of confusion.Kaviraj Pandit Durga Dutt Sharma vs. Navratna Pharmaceutical Laboratories (1964 SCC OnLine SC 14):Highlighted the distinction between infringement and passing off actions.Corn Products Refining Co. vs. Shangrila Food Products Ltd. (1959 SCC OnLine SC 11):Emphasized the importance of the first impression in determining trademark similarity.Pankaj Goel vs. Dabur India Ltd. (2008 SCC OnLine Del 1744):Discussed deceptive similarity and its impact on consumer perception.

Reasoning of the Judge:Trademark Ownership: The plaintiff's extensive use and registrations established ownership of the "IMS" trademark.Infringement by ex franchise: The defendant's mark "IMS Young Achievers" was deceptively similar to the plaintiff's trademark, causing confusion. The Defendant, being ex Franchisee, can not use the Trademark, post Termination of Franchisee Agreement.Passing Off: By using "IMS," the defendant misrepresented an association with the plaintiff, harming its goodwill.Dishonest Conduct: The defendant's actions, including misleading advertisements and unauthorized use of the trademark, demonstrated bad faith.

Decision:The court held in favor of the plaintiff, granting a permanent injunction restraining the defendant from using "IMS" or any deceptively similar mark. The defendant was directed to pay damages for infringing the plaintiff's trademark and passing off its services as those of the plaintiff.

Concluding Note:This case underscores the importance of respecting intellectual property rights, particularly in franchise relationships. It highlights the legal consequences of breaching agreements and the necessity for clear branding practices to avoid consumer confusion. The judgment reinforces trademark protection as a means to preserve goodwill and prevent unfair competition.

Case Title: IMS Learning Resources Pvt. Ltd. vs. Young Achievers

Date of Order: January 20, 2025

Case No.: CS(COMM) 602/2018

Neutral Citation: 2025:DHC:282

Court: High Court of Delhi

Judge: Hon’ble Ms. Justice Mini Pushkarna

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

Disclaimer:The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Broad Peak Investment Holding vs. Broad Peak Capital

Role of Goodwill in Trademark Infringement and Passing off Action

Introduction: This case revolves around a trademark infringement and passing-off dispute concerning the use of the trademark "BROAD PEAK." The plaintiffs sought a permanent injunction to prevent the defendants from using an identical mark, alleging infringement of their intellectual property rights. The court was called upon to analyze competing claims of prior use, goodwill, and misrepresentation in this intricate legal battle.

Background: The plaintiffs, Broad Peak Investment Holdings Ltd. and its subsidiary, are global investment managers operating under the trademark "BROAD PEAK" since 2006. They alleged that the defendants, Broad Peak Capital Advisors LLP, adopted the same mark in 2016, leading to market confusion and harm to their goodwill. The plaintiffs sought to enforce their rights under the Trade Marks Act, 1999, as well as common law principles of passing off.On the other hand, the defendants claimed that their adoption of the mark was bona fide and independent, with no prior knowledge of the plaintiffs' operations.

Brief Facts of the Case: The plaintiffs began using the mark "BROAD PEAK" in 2006 and registered it in India in 2017. The defendants incorporated their firm under the same name in 2016 and registered their trademark shortly after. Both parties provided investment advisory services, although they catered to different clientele. The plaintiffs alleged confusion in the market, citing evidence of mistaken communications addressed to the defendants.

Issues Raised: Infringement: Whether the defendants' use of the trademark "BROAD PEAK" constitutes infringement of the plaintiffs' rights under the Trade Marks Act. Passing Off: Whether the defendants' actions amounted to passing off, causing harm to the plaintiffs' goodwill and reputation. Goodwill and Prior Use: Whether the plaintiffs had established sufficient goodwill and prior use of the mark in India to claim exclusive rights. Honest and Concurrent Use: Whether the defendants' use of the mark was bona fide and protected under Section 12 of the Trade Marks Act.

Plaintiff Submission:Claimed prior adoption and registration of the trademark "BROAD PEAK" since 2006 globally and 2017 in India. Alleged confusion and misrepresentation by the defendants' identical use of the mark. Cited evidence of market confusion, such as emails and third-party listings.

Defendant Submission: Argued that they adopted the mark independently in 2016 after conducting due diligence. Claimed honest and concurrent use of the mark since 2016. Highlighted the absence of widespread use or goodwill of the plaintiffs' mark in India prior to 2017.

Judgments Referred and Their Context:S. Syed Mohideen v. P. Sulochana Bai [(2016) 2 SCC 683] Established the triple test for passing off: goodwill, misrepresentation, and damage.Satyam Infoway v. Siffynet Solutions [(2004) 6 SCC 145] Highlighted the importance of proving reputation and misrepresentation for a passing-off claim.Toyota Jidosha Kabushiki Kaisha v. Prius Auto Industries [(2018) 2 SCC 1] Emphasized the principle of territoriality and the need to prove goodwill in India for trademark protection.Cadila Healthcare v. Cadila Pharmaceuticals [(2001) 5 SCC 73] Discussed factors for determining deceptive similarity, including the education and sophistication of consumers.

Reasoning of the Judge:Goodwill and Reputation: The court found that the plaintiffs’ evidence showed sporadic use in India, insufficient to establish goodwill.Misrepresentation: The defendants' adoption of the mark appeared bona fide, with no evidence of deliberate copying.Market Confusion: While instances of confusion were cited, the judge held that the clientele of both parties were sophisticated investors unlikely to be misled.Concurrent Use: The court upheld the defendants’ claim of honest and concurrent use, given their continuous use since 2016.

Decision:The application for an interim injunction filed by the plaintiffs under Order XXXIX Rules 1 and 2 of the CPC was dismissed. The court allowed both parties to retain their respective trademark registrations, pending trial.

Concluding Note:This case underscores the complexity of trademark disputes, particularly in industries involving sophisticated clientele. It reiterates the importance of proving goodwill and reputation within the Indian jurisdiction to secure exclusive rights under trademark law. The judgment highlights the balance courts must strike between protecting intellectual property and respecting honest and concurrent use.

Case Title: Broad Peak Investment Holdings Ltd. Vs Broad Peak Capital Advisors LLP

Date of Order: January 20, 2025

Case No.: CS(COMM) 405/2024

Neutral Citation: 2025:DHC:267

Court: High Court of Delhi

Judge: Hon’ble Mr. Justice Amit Bansal

Advocate Ajay Amitabh Suman

[Patent and Trademark Attorney]

High Court of Delhi

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