Information on this blog is being shared only for the purpose of creating legal awareness in public at large, especially in the field of Intellectual Property Right. As there may be possibility of error, omission or mistake in legal interpretation on the contents of this blog, it should not be treated as substitute for legal advise.
Tuesday, September 9, 2025
Ashiana Ispat Limited Vs. Kamdhenu Limited
Sonani Industries Pvt. Ltd. Vs Mr. Sanjay Jayantbhai Patel
Sonani Industries Pvt. Ltd. (the petitioner, formerly Sonani Jewels Pvt. Ltd.) has filed three rectification petitions seeking cancellation of copyright registrations held by Respondent No. 1 (Mr. Sanjay Jayantbhai Patel). Separately, the petitioner has filed a suit for copyright infringement against Respondent No. 1 in the District Court, Surat, which is pending. On 09.09.2024, the Supreme Court in Special Leave to Appeal (C) 20025/2014 (Sonani Industries Pvt. Ltd. v. Prime Diamond Tech and Ors.) directed the Surat District Court to endeavor to decide the suit within one year. Respondent No. 2 appears to be a government or official party, represented through counsel via video conference.
The petitioner argues that the copyright registrations in favor of Respondent No. 1 are invalid because the mandatory requirement under Rule 70(9) of the Copyright Rules, 2013 was not followed. Specifically, while submitting Form XIV for registration, Respondent No. 1 was required to give notice to the petitioner (as a potential interested party), which was not done. Thus, the petitioner claims the registrations cannot stand and must be struck off from the Copyright Register for non-compliance with statutory provisions. The petitioner relies on Bharat Tea Suppliers v. Gujarat Tea Traders and Another (2021 SCC OnLine BOM 3637) and an order dated 02.05.2024 by a coordinate bench of this court in C.O.(COMM.IPD-CR) 750/2022.
Respondent No. 1 counters that the issues in these petitions overlap with those in the pending Surat infringement suit, so the High Court should await its outcome. Respondent No. 1 asserts full compliance with Rule 70(9), and notes that the copyright is not a public document, so no presumption of infringement or dispute arises automatically. Further, the Surat court found no prima facie case for the petitioner, and even the Supreme Court granted only partial relief (direction to maintain accounts and not divulge copyright info to third parties), denying a full injunction against Respondent No. 1's business.
Considering the submissions, the court found it appropriate to await the decision in the pending copyright infringement suit in the District Court, Surat, before proceeding with the rectification petitions. The matters are re-notified for hearing on 28.04.2025.
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Kryolan GmbH and Anr. Vs Krelon Cosmetics
Kryolan GmbH (Plaintiff No. 1, a German company) has used the trademark 'KRYOLAN' as its trade mark, trade name, house mark, and company name since 1945 worldwide, including India, for cosmetics like mascara, gel eyeliner, makeup sponges, lipsticks, and cream blushes. Its Indian wholly-owned subsidiary (Plaintiff No. 2, established 2002) continues this use. The mark is registered in India (No. 601757, Class 3, since 15.07.1993), with additional applications pending.
Defendants (M/s Krelon Cosmetics as No. 1 and Anr. as No. 2) use 'KRELON/KRELON COSMETICS' for identical cosmetics. Plaintiffs sent a cease-and-desist notice on 20.12.2024 demanding stoppage of use or similar marks; defendants replied 06.01.2025 refusing compliance, claiming descriptive adoption. Defendants filed TM application No. 548169 (09.06.2022, Class 3, proposed use, pending under opposition by Plaintiff No. 1) and No. 6114674 (18.09.2023, Class 35, registered since unopposed, but rectification petition filed by Plaintiff No. 1 as unaware at advertisement time). Defendants claim use since 21.11.2022 and 10 years in beauty industry. On distributor site (Maniram Balwant Rai), searching defendants' products suggests plaintiffs', indicating confusion.
The suit seeks permanent injunction against trademark infringement, passing off, dilution, unfair competition, damages, etc., under Trade Marks Act, 1999. Plaintiffs argue 'KRELON/KRELON COSMETICS' (impugned mark) is deceptively similar to 'KRYOLAN'—visually (similar structure), phonetically (sound alike), and conceptually (fanciful marks in identical cosmetics category, Class 3)—likely confusing average consumers into believing defendants' products are authorized/affiliated. Addition of 'COSMETICS' is descriptive and non-distinctive. Defendants' Class 35 registration irrelevant (services, not goods). Plaintiffs' mark is invented/fanciful house mark; defendants' descriptive claim fallacious. Bad faith presumed: Defendants aware of plaintiffs' prior use (sales ₹71.79 crores in 2022-23) yet adopted in 2022. Trade channels/consumers identical, risking misrepresentation. Defendants absent despite advance service.
The court found Found prima facie case: Plaintiffs prior registered proprietors (No. 601757, Class 3); 'KRYOLAN' invented/fanciful with substantial goodwill/sales; 'KRELON' deceptively similar (visual/phonetic), not descriptive, in identical goods/channels, presuming bad faith awareness. Balance of convenience/irreparable injury favors plaintiffs; public interest in avoiding confusion. Ex parte ad-interim injunction granted until next hearing: Defendants, proprietors/partners/directors, and agents restrained from using 'KRELON/KRELON COSMETICS' or deceptively similar marks/names in Class 3 for cosmetics, infringing 'KRYOLAN'. Notice via all modes on process fee payment, returnable next date; reply within four weeks of notice; rejoinder four weeks thereafter.
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Jyothy Labs Limited Vs. Gautam Kumar
Jyothy Labs Limited (the plaintiff) is a company that markets and sells household essentials, including its flagship product, the 'MAXO GENIUS MACHINE' mosquito repellent machine and refills (launched in 2000). This product is sold under the registered trademark 'MAXO' (in Classes 5, 7, 9, 11, and 21 since 18.07.2000), with a copyright registration (No. A-149826/2023 dated 14.12.2023) for the artwork on the packaging (trade dress), and design registrations (Nos. 332182-001 dated 20.08.2020; 375296-001 and 375295-001 dated 09.12.2022) for the bottle/refill shape.
The defendants (Gautam Kumar as Defendant No. 1 and Anr. as No. 2) are involved in manufacturing and selling spying cameras and digital gadgets. In May 2025, the plaintiff learned that the defendants were tampering with genuine 'MAXO' machines by embedding spy cameras inside them, along with refills containing mosquito repellent liquid, and selling these as "Infringing Products" on platforms like YouTube (@smarsofficial8875), Amazon, Flipkart, and their websites (www.smars.in and www.spyimporter.in). An investigator purchased samples from the defendants' listings (paying ₹2,999 on smars.in, ₹3,860 and ₹3,425 on Amazon/Flipkart via UPI/Paytm), confirming delivery of tampered products to New Delhi on 21-22.05.2025. The defendants concealed the 'MAXO' mark on online listings but delivered products with visible 'MAXO' branding and trade dress, misleading buyers into thinking they were authorized plaintiff products.
The main issue is trademark infringement, copyright infringement, passing off, dilution and tarnishment of the 'MAXO' mark and trade dress, unfair trade practices, unfair competition, disparagement, and false trade description. The plaintiff argues that the defendants' tampering alters the product's condition and functionality (from mosquito repellent to spy device), violating Sections 29, 30(3), and 30(4) of the Trade Marks Act, 1999 (no exhaustion under Section 30(2)(d) due to impairment and legitimate opposition reasons). This creates confusion, misrepresents origin/quality, and exposes the plaintiff to liability for illegal privacy breaches (e.g., sting operations), damaging its reputation and goodwill. The defendants' deliberate concealment online shows bad faith, leading to unjust enrichment from the plaintiff's brand. The suit seeks permanent injunction, damages, accounts, and delivery up. Defendants did not appear.
The court found a prima facie case. Defendants' tampering impairs the product, misappropriates the 'MAXO' mark/trade dress, and alters origin (not covered by Trade Marks Act exhaustion due to changes under Section 30(3)/(4)). Online concealment but visible delivery shows mala fides; infringing products risk illegal use, harming plaintiff's reputation irreparably. Balance of convenience favors plaintiff; no prejudice to defendants. Ex parte ad-interim injunction granted until next hearing: Defendants, assignees, affiliates, licensees, distributors, dealers, stockists, retailers, agents restrained from manufacturing, offering for sale, selling, advertising, or dealing in infringing products (spy cameras in 'MAXO' machines/refills or similar bearing 'MAXO'/deceptively similar marks, infringing trademark/copyright A-149826/2023).
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
GlaxoSmithKline Pharmaceuticals Vs. Chembott Chemicals
Centrient Pharmaceuticals Vs Dalas Biotech Limited
This case revolves around a patent infringement dispute in the pharmaceutical industry. The plaintiffs, Centrient Pharmaceuticals Netherlands B.V. and another entity, hold a patent numbered IN 247301. This patent covers a specific process for preparing Amoxicillin Trihydrate, which is a key ingredient used in antibiotics. The plaintiffs filed a commercial suit (CS(COMM) 218/2019) seeking a permanent injunction to stop the defendant, Dalas Biotech Limited, from using or infringing on this patented process. They claimed that the defendant was manufacturing Amoxicillin Trihydrate using a method that violated their patent rights.
The defendant filed a written statement denying the infringement. In paragraph 94 of this statement, they described their manufacturing process for Amoxicillin Trihydrate. However, the plaintiffs argued that this description was vague and full of ambiguities.
The plaintiffs application (I.A. 15057/2019) under Order XI Rule 2 of the Code of Civil Procedure (CPC), 1908, as amended by the Commercial Courts Act, 2016, read with Section 151 CPC.
The main dispute in this application was whether the court should force the defendant to answer the plaintiffs' interrogatories and disclose detailed information about their manufacturing process and regulatory filings.
The defendant opposed, saying the interrogatories were irrelevant to the suit, sought confidential business information, and were just a "fishing expedition" to gather evidence instead of proving the case through trial.
In essence, this was a battle over discovery rights: How much detail must the defendant reveal early in the case to defend against infringement claims, especially when it involves trade secrets and regulatory approvals?
- Burden under Section 104A(1)(b) Patents Act: Plaintiffs must prove infringement first (via product comparison). Their attempt here is to discover the defendant's "exclusive evidence" through fishing—e.g., demanding documents that reveal trade secrets.
- Interrogatories can't replace cross-examination. The "optionality" issues (enzyme, acids, pH) can be tested during trial by questioning the defendant's witnesses on credibility.
The court dismissed the application. It held that directing the defendant to answer the interrogatories would not serve justice, as it amounts to an impermissible roving inquiry. The issues can be resolved at trial through evidence and cross-examination. No merit in the application; it stands dismissed.
This decision emphasizes the limits of discovery in patent suits: Plaintiffs can't use interrogatories to force disclosure of confidential processes without strong proof of relevance, especially when trial mechanisms exist. It protects trade secrets while upholding the burden-shifting under the Patents Act.
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Arteform Designs Private Ltd. Vs. Abrol Engineering Company Pvt. Ltd
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Essel Sports Pvt. Ltd. Vs. Union of India
Friday, September 5, 2025
Castrol Limited Vs . Sanjay Sonavane
Exphar S A & Anr. Vs. Essphar Private Limited
Thursday, September 4, 2025
Basant Goel Vs. Som Prakash Sethi
Cyril Bath Company Vs. Controller of Patents and Designs
Cyril Bath Company Vs. Controller of Patents and Designs :IPDPTA/8/2025: High Court at Calcutta: Justice Ravi Krishan Kapur:01.09.2025
Dispute: Cyril Bath Company had filed a divisional patent application in India (Application No. 1376/KOLNP/2013). The Controller of Patents rejected the divisional application, holding that modification of claims in a PCT national phase application is not allowed under the Patents Act and Rules. The Controller concluded that such modification could only be sought through amendment, not by filing a divisional application.
Reasons (Court’s Discussion): The Court observed that the Controller’s order was defective because it only quoted provisions (like Sections 10, 11, 16, etc. of the Patents Act) but gave no reasoning. Under law, an order must satisfy the tests of “why” and “what”—the reasoning must explain why the conclusion has been reached. Without reasons, the order becomes unsustainable.
The Court also noted that the Controller had wrongly relied on the Delhi High Court decision in Boehringer Ingelheim without considering the later judgment in Syngenta Ltd. v. Controller of Patents (2023), which had clarified the law.
Decision:The High Court set aside the Controller’s order and remanded the matter back to the Controller of Patents to decide the divisional application afresh in accordance with law, within three months. The Court made it clear that it had not given any opinion on the merits of the divisional application itself.
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi)
Hero Ecotech Limited and Another Vs. Hero Cycles Limited
Wednesday, September 3, 2025
Mangalam Organics Ltd Vs N Ranga Rao And Sons Pvt Ltd
Renaissance Hotel Holdings Inc. Vs. B. Vijaya Sai
Section 29 (4) of Trademarks Act 1999 applies only to dissimilar goods and not relevant to identical services
Introduction
In the realm of intellectual property, where brands battle for supremacy, Renaissance Hotel Holdings Inc. v. B. Vijaya Sai and Others emerges as a landmark showdown before the Supreme Court of India. Decided on January 19, 2022, this case pits a global hospitality giant against a local hotel operator over the use of the trademark "RENAISSANCE." The dispute encapsulates the tension between statutory trademark rights and claims of honest use, weaving a narrative of legal precision, commercial identity, and judicial interpretation. The Supreme Court’s ruling not only resolves a contentious infringement claim but also illuminates the contours of the Trade Marks Act, 1999, offering a masterclass in statutory application and trademark protection in India’s evolving commercial landscape.
Detailed Factual Background
Renaissance Hotel Holdings Inc., a Delaware-based corporation, stands as a titan in the global hospitality industry, operating under the trademark "RENAISSANCE" since 1981. This mark, registered in India under Class 16 (Registration No. 610567) for printed materials and Class 42 (Registration No. 1241271) for hotel and related services, has adorned its hotels, spas, and merchandise worldwide, including establishments in Mumbai and Goa since 1990. With an annual advertising budget of US$14 million and a domain name (www.renaissancehotels.com), the appellant asserts a formidable trans-border reputation, claiming "RENAISSANCE" as a distinctive symbol of its luxury hospitality empire.
The respondents, led by B. Vijaya Sai, operate two modest hotels in Bangalore (Kadugodi) and Puttaparthi under the name "SAI RENAISSANCE." Devotees of Sri Shirdi Sai Baba and Sri Puttaparthi Sai Baba, they adopted this name in 2001, believing the latter to be a reincarnation of the former—thus, "renaissance" symbolizing rebirth. Their hotels cater primarily to Sai Baba devotees, offering vegetarian fare sans alcohol, a stark contrast to the appellant’s five-star offerings. The respondents’ use of "SAI RENAISSANCE" came to the appellant’s attention in 2008 via the website www.sairenaissance.com, prompting an investigation that revealed alleged copying of signage, business cards, and the "RENAISSANCE" mark, suggesting an unauthorized affiliation.
Detailed Procedural Background
The appellant initiated legal action in 2009, filing O.S. No. 3 of 2009 before the Principal District Judge, Bangalore Rural District, seeking a permanent injunction, delivery of infringing materials, and damages of Rs. 3,50,000. On June 21, 2012, the trial court partly decreed the suit, granting an injunction against the respondents’ use of "SAI RENAISSANCE" or any mark incorporating "RENAISSANCE" in Classes 16 and 42, but denying damages and delivery-up claims. The respondents appealed to the High Court of Karnataka in Regular First Appeal No. 1462 of 2012. On April 12, 2019, a Single Judge reversed the trial court’s decree, dismissing the suit on grounds of no trans-border reputation, honest use by the respondents, and no likelihood of confusion due to differing customer bases. Aggrieved, the appellant escalated the matter to the Supreme Court via Civil Appeal No. 404 of 2022, arising from SLP(C) No. 21428 of 2019, culminating in the January 19, 2022, judgment by a three-judge bench.
Issues Involved in the Case
The case revolves around several critical issues. First, whether the respondents’ use of "SAI RENAISSANCE" infringes the appellant’s registered trademark "RENAISSANCE" under Sections 29(2)(c), 29(3), 29(5), or 29(9) of the Trade Marks Act, 1999. Second, whether the High Court erred in applying Section 29(4) (for dissimilar goods/services) instead of provisions for identical marks and services. Third, whether the respondents’ use qualifies as honest concurrent use under Section 30, shielding them from infringement. Fourth, whether the appellant’s delay in filing the suit constitutes acquiescence, barring relief. Finally, whether "RENAISSANCE"’s generic nature or the respondents’ addition of "SAI" negates infringement.
Detailed Submission of Parties
The appellant, represented by Senior Counsel K.V. Viswanathan, argued that the respondents’ use of "SAI RENAISSANCE" infringed its registered mark under multiple provisions of Section 29. Under Section 29(2)(c), the identical mark and services (hotels) triggered a statutory presumption of confusion per Section 29(3). Section 29(5) was invoked as the respondents used "RENAISSANCE" in their trade name, a direct infringement. Section 29(9) applied due to phonetic and visual similarity. Viswanathan contended that the High Court misapplied Section 29(4), which requires reputation and detriment only for dissimilar goods, irrelevant here given the identical services. Citing precedents, he argued that in infringement cases, confusion need not be proven when marks are identical, and the prefix "SAI" did not mitigate the violation.
The respondents, represented by B.C. Sitarama Rao, countered that the suit was untenable due to delay and the appellant’s lack of legal personhood. They portrayed "RENAISSANCE" as a generic dictionary term, incapable of exclusive appropriation, and justified "SAI RENAISSANCE" as an honest tribute to Sai Baba’s reincarnation, used since 2001 without appellant awareness until 2009. They highlighted distinct customer bases—devotees versus luxury travelers—and differing services (vegetarian versus full-service), negating confusion. Claiming honest concurrent use under Section 12 and protection under Section 30, they relied on precedents to argue that their use neither exploited nor harmed the appellant’s mark.
Detailed Discussion on Judgments Cited by Parties and Their Context
The appellant cited Laxmikant V. Patel v. Chetanbhai Shah [(2002) 3 SCC 65], where the Supreme Court upheld an injunction against a similar mark in the same trade, emphasizing protection of goodwill. In Ruston & Hornsby Limited v. Zamindara Engineering Co. [(1969) 2 SCC 727], the Court ruled that in infringement cases, identical mark use warrants an injunction without proving confusion, distinguishing it from passing off. Kaviraj Pandit Durga Dutt Sharma v. Navaratna Pharmaceutical Laboratories [[1965] 1 SCR 737] reinforced that close similarity in marks negates the need for further evidence in infringement actions. Midas Hygiene Industries (P) Limited v. Sudhir Bhatia [(2004) 3 SCC 90] underscored that injunctions typically follow infringement, irrespective of delay unless adoption is dishonest.
The respondents relied on Khoday Distilleries Limited v. Scotch Whisky Association [(2008) 10 SCC 723], which addressed acquiescence in rectification proceedings, not infringement, rendering it inapposite. Nandhini Deluxe v. Karnataka Cooperative Milk Producers Federation Limited [(2018) 9 SCC 183] distinguished dissimilar marks and goods (milk versus restaurants), unlike the identical services here. Corn Products Refining Co. v. Shangrila Food Products Limited [[1960] 1 SCR 968] and Neon Laboratories Limited v. Medical Technologies Limited [(2016) 2 SCC 672] dealt with distinct contexts (opposition and interim injunctions), offering limited relevance.
Detailed Reasoning and Analysis of Judge
Justice B.R. Gavai, authoring the Supreme Court’s opinion, meticulously dissected the High Court’s errors. The Court traced the evolution of trademark law from the 1940 Act to the 1999 Act, emphasizing the latter’s intent to harmonize global trade practices and prohibit unauthorized use of registered marks in trade names. Under Section 29(2)(c), the identical mark "RENAISSANCE" and identical services (hotels) triggered a presumption of confusion under Section 29(3), rendering further proof unnecessary. Section 29(5) applied as "RENAISSANCE" formed part of the respondents’ trade name, and Section 29(9) covered phonetic and visual similarity, amplifying the infringement.
The High Court’s reliance on Section 29(4) was deemed a misstep, as it pertains to dissimilar goods/services and requires reputation and detriment—irrelevant here given the identical services. The Court criticized the High Court’s focus on customer classes and confusion, citing Ruston & Hornsby to affirm that infringement hinges on mark use, not deception likelihood. The respondents’ Section 30 defense failed, as honest use required both fair practice and no detriment, conditions unmet given the unauthorized adoption. Textual and contextual interpretation, per Reserve Bank of India v. Peerless [(1987) 1 SCC 424], and holistic statutory reading, per Balasinor Nagrik Cooperative Bank [(1987) 1 SCC 606], underscored the High Court’s fragmented approach, ignoring legislative intent.
Final Decision
The Supreme Court allowed the appeal, quashing the High Court’s judgment of April 12, 2019, and reinstating the trial court’s decree of June 21, 2012. The respondents were restrained from using "SAI RENAISSANCE" or any mark incorporating "RENAISSANCE" in Classes 16 and 42, affirming the appellant’s exclusive rights.
Law Settled in This Case
The judgment clarifies that under Section 29(2)(c) and (3), identical marks and goods/services presume confusion, mandating injunctions without further evidence. Section 29(5) prohibits use of a registered mark in trade names, and Section 29(9) extends protection to phonetic/visual similarity. Section 29(4) applies only to dissimilar goods, requiring reputation and detriment, not relevant to identical services. Section 30’s honest use defense demands both fair practice and no detriment, a conjunctive test. The ruling reinforces statutory primacy in infringement actions, distinguishing them from passing off’s common law roots.
Case Title: Renaissance Hotel Holdings Inc. Vs. B. Vijaya Sai and OthersDate of Order: January 19, 2022
Case No.: Civil Appeal No. 404 of 2022 [Arising out of SLP(C) No. 21428 of 2019]
Name of Court: Supreme Court of India
Name of Judges: Justice L. Nageswara Rao, Justice B.R. Gavai, Justice B.V. Nagarathna
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Tuesday, September 2, 2025
Maryam Bee Versus Shuibham Jain and Ors
Impleadment of Third Parties in Specific Performance Suits
The case titled Maryam Bee versus Shuibham Jain and Ors., with Case Number FAO(OS) (COMM) 199/2024 : 2025:DHC:7318-DB High Court of Delhi at New Delhi on 26 August 2025 by Hon'ble Mr. Justice Anil Ksheterpal and Hon'ble Mr. Justice Harish Vaidyanathan Shankar.
Detailed Summary of the Case
Facts
The underlying dispute originates from a commercial suit for specific performance of an Agreement to Sell (ATS) dated 27 December 2022, concerning a property admeasuring 82.5 square yards, bearing Municipal No. 1806 (Mezzanine Floor to Second Floor with roof rights), Ward No. 4, Chandni Chowk, Dariba Kalan, New Delhi, 110006 (referred to as the "suit property"). The plaintiffs in the original suit (Respondent Nos. 1 to 3 herein, namely Shuibham Jain and others) filed CS (Comm) No. 590/2023 against the appellant, Maryam Bee, seeking specific performance of the ATS. According to the plaintiffs, the ATS was executed for a total sale consideration of Rs. 7,00,00,000 (Rupees Seven Crores Only), and they had made partial payments, but the appellant failed to execute the sale deed in their favor, necessitating the suit.
The appellant (Maryam Bee), however, contended that the total sale consideration was actually Rs. 9,00,00,000 (Rupees Nine Crores Only), as an additional ATS for Rs. 2,00,00,000 (Rupees Two Crores Only) was executed on the same date (27 December 2022). She claimed that the plaintiffs' failure to pay the full amount prevented her from executing the sale deed.
During the pendency of this suit, Respondent No. 4 (the brother-in-law of the appellant) filed an application under Order I Rule 10 of the Code of Civil Procedure, 1908 (CPC), being I.A. No. 23592/2023, seeking to be impleaded as a party to the suit. Respondent No. 4 claimed to be a co-owner of the suit property to the extent of 50%, along with his brother Abdul Malik (the appellant's husband). He asserted that the appellant's ownership claim was based on two Gift Deeds dated 23 August 1981 executed by Late Smt. Zubeda Khatoon and Late Sh. Sheikh Abdul Sattar Sahib (the appellant's mother-in-law and father-in-law, respectively). In contrast, Respondent No. 4 argued that the property was co-shared between him and Abdul Malik.
On 7 May 2024, the learned Single Judge of the Delhi High Court allowed this impleadment application, observing that Respondent No. 4 appeared to have some interest in the property, and excluding him could lead to multiplicity of litigation and conflicting rulings. Aggrieved by this order (specifically the portion allowing impleadment), the appellant filed the present appeal under Order XLIII Rule 1 CPC read with Section 10 of the Delhi High Court Act, 1966 (DHC Act). The appeal was reserved on 6 August 2025 and pronounced on 26 August 2025.
Notably, the plaintiffs (Respondent Nos. 1 to 3) opposed the impleadment in the original application and supported the appellant's claim of sole ownership in the appeal. They had separately challenged another portion of the impugned order (regarding a deposit direction) in FAO(OS)(COMM) 167/2024, which was dismissed on 6 August 2024, rendering the impleadment final as against them.
Dispute
The primary dispute in this appeal revolves around the maintainability and propriety of impleading Respondent No. 4 as a defendant in a suit for specific performance of the ATS. The appellant argued that:
- A third party or stranger to the contract cannot be impleaded in a specific performance suit merely to avoid multiplicity of suits, as it would impermissibly enlarge the scope of the suit from enforcing a contract to determining title and possession.
- Respondent Nos. 1 to 3, as dominus litis (masters of the suit), opposed the impleadment, and their stance should be respected.
- The impleadment converts the suit into one for title, which is not permissible.
In opposition, Respondent No. 4 contended:
- The impugned order is not appealable under Order XLIII Rule 1 CPC, and Section 10 of the DHC Act cannot be invoked due to Section 13(2) of the Commercial Courts Act, 2015 (CCA). He relied on cases like Kandla Export Corpn. v. OCI Corpn. (2018) 14 SCC 715, M.V. Polaris Galaxy v. Banque Cantonale De Geneve (2024) 5 SCC 750, Trex India Pvt. Ltd. v. CDE Asia Limited 2023 SCC OnLine Del 2388, and Alka Traders v. Cosco India Ltd. 2020 SCC OnLine Del 3694.
- Impleadment in specific performance suits depends on facts and circumstances, and no rigid rule prohibits it. He cited Sumtibai v. Paras Finance Co. (2007) 10 SCC 82 and Rajesh Kumar Arora v. Smt. Shila 2016 SCC OnLine Del 1277.
- The impugned order had attained finality against the plaintiffs, as their separate appeal was dismissed.
A preliminary objection was raised on the appeal's maintainability under the CCA and CPC provisions.
Reasoning
The Division Bench of the Delhi High Court, comprising Justices Anil Ksheterpal and Harish Vaidyanathan Shankar, first addressed the preliminary objection on maintainability. They distinguished the relied-upon cases (Kandla Export, M.V. Polaris Galaxy, Trex India, and Alka Traders), noting that those dealt with arbitration appeals, admiralty suits, rejection of plaints, or ex parte proceedings, which were inapplicable here. Instead, relying on Gurmauj Saran Baluja v. Mrs. Joyce C. Salim 1988 SCC OnLine Del 295 and Supreme Court precedents like Shah Babulal Khimji v. Jayaben D. Kania (1981) 4 SCC 8 and Jugal Kishore Paliwal v. S. Sat Jit Singh (1984) 1 SCC 358, the Bench held that the impugned order qualifies as a "judgment" under Section 10(1) of the DHC Act. It affects substantive rights (e.g., enlarging the suit's scope and forcing a de novo trial), making the appeal maintainable even if not expressly listed under Order XLIII CPC.
On merits, the Bench analyzed Order I Rule 10(2) CPC, which allows impleadment only if a party's presence is necessary for complete adjudication of the issues involved. They emphasized that suits for specific performance are contract-centric, adjudicating enforceability between contracting parties, and result in judgments in personam (not in rem). Citing the Supreme Court's seminal ruling in Kasturi v. Iyyamperumal (2005) 6 SCC 733, the Bench reiterated that impleading a third party claiming adverse title enlarges the suit into one for title/possession, which is impermissible. The two tests from Kasturi for a "necessary party" were applied: (i) right to relief against them in the controversy, and (ii) inability to pass an effective decree without them. A "proper party" requires their presence for effective adjudication.
The Bench distinguished Sumtibai (supra), where impleadment was allowed due to prima facie semblance of title via a registered sale deed involving the defendant's legal representatives (LRs), noting it was fact-specific and not a blanket exception. Similarly, Rajesh Kumar Arora was deemed inapplicable, as it involved multiple applications, pending inter se suits among parties, and the appeal on impleadment was dismissed without merit analysis.
The Bench concluded that Respondent No. 4, as a stranger to the ATS, failed the tests under Order I Rule 10 CPC. His impleadment would introduce collateral title issues, contrary to precedents like Anil Kumar Singh v. Shivnath Mishra (1995) 3 SCC 147, Vijay Pratap v. Sambhu Saran Sinha (1996) 10 SCC 53, and Bharat Karsondas Thakkar v. Kiran Construction Company (2008) 13 SCC 658. The learned Single Judge's reasoning (potential interest and multiplicity avoidance) was flawed, as it overlooked the suit's limited scope. Even assuming Respondent No. 4's prima facie interest, it did not make him necessary or proper for adjudicating the contract's enforceability.
Decision
The appeal was allowed, and the impugned order dated 7 May 2024 (allowing I.A. No. 23592/2023) was set aside, thereby reversing the impleadment of Respondent No. 4 as Defendant No. 2 in CS (Comm) No. 590/2023. Respondent No. 4 was granted liberty to pursue his claims via an independent suit before a competent court. The appeal and pending applications were disposed of accordingly, with no other submissions noted from the parties.
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, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Suggested Title for This Article
": Delhi High Court Sets Aside Order Allowing Co-Ownership Claim in Contract Dispute"
Karim Hotels Pvt. Ltd. Vs. AL Kareem
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WHETHER THE REGISTRAR OF TRADEMARK IS REQUIRED TO BE SUMMONED IN A CIVIL SUIT TRIAL PROCEEDING
WHETHER THE REGISTRAR OF TRADEMARK IS REQUIRED TO BE SUMMONED IN A CIVIL SUIT TRIAL PROCEEDING IN ORDER TO PROVE THE TRADEMARK REGISTRA...
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A Party is not allowed to argue a case, what is not pleaded. Introduction: This case revolves around a fundamental principle of civil proce...
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Species patents following a Markush patent must demonstrate a distinct inventive step Introduction The AstraZeneca AB & Anr. Vs. Intas ...
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भगत सिंह - जिसे फाँसी होनी थी कुछ लम्हों बाद, वो किताब पढ़ रहा था, दीपक था वो कुछ अजीब, बुझकर भी जल रहा था। ना शिकवा, ना शिकायत, ना कोई इल्तिज़ा थी उसकी, वो कहानी थी...8 hours ago
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IPL:Spice In, Nationality Out - I was sitting in my office. It was a hot afternoon. The fan was running slowly and making strange sounds like an old typewriter. Files were lying on my d...9 months ago
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