Tuesday, May 8, 2018

CROCS INC.USA Vs AQUALITE-AMENDMENT APPLICATION





$~1

*                    IN THE HIGH COURT OF DELHI AT NEW DELHI

+            CS(COMM) 52/2018

CROCS INC.USA                                                                                               ..... Plaintiff

Through:        Mr. Ajay Amitabh Suman, Advocate.

Versus

AQUALLITE INDIA LIMITED AND ANR.                            ..... Defendants

Through:        Mr. Peeyoosh Kalra, Advocate with

Mr. C.A. Brijesh, Advocate and Mr.
Rohan Seth, Advocate.
CORAM:

HON'BLE MR. JUSTICE VALMIKI J. MEHTA O R D E R

%                                         01.05.2018

1.                           Let  a  copy  of  the  detailed  order  disposing  of  the  interim

injunction application in this suit passed on 8.2.2018 be placed in this suit

file being CS(COMM) No.52/2018, alongwith the short order in this suit

dated 8.2.2018 existing in this file.

I.A. No.                 /2018 (under Order 6 Rule 17 CPC filed by plaintiff)

2.                           This application be numbered by Registry.

3.                           By this application the plaintiff seeks to amend the plaint to add

para 33 by stating that the plaintiff had earlier filed a suit on more or less the

same cause of action and for seeking the same reliefs against the present


CS(COMM) No.52/2018                                                                                                 page 1 of 4




defendants in the District Courts at Saket and that in this earlier suit by an order dated 9.6.2017, exparte interim injunction was declined to the plaintiff. The plaintiff then withdrew that earlier suit with liberty, which was granted to file this suit, but the factum of the exparte injunction being declined by the Saket District Courts was not mentioned in this suit. It is stated that plaintiff now seeks to plead this averment of having earlier filed the suit against the same defendant on more or less the same facts and in which suit exparte injunction was declined to the plaintiff and the plaintiff be allowed to amend the plaint to this extent on account of the amendment prayed for being only clarificatory and also because this fact was not mentioned in the existing plaint because of “ bonafide opinion of law”.

4. In my opinion, this application is a gross abuse of process of law. Plaintiff has been found guilty of concealment of material facts with respect to facts not being stated of non-grant of interim injunction in the earlier suit, as per the plaint filed in the subject suit filed in Patiala House Courts, New Delhi (and which has thereafter been transferred to this Court). The result of concealment was that an exparte injunction was successfully obtained by the plaintiff. It is noted that in view of the above facts of


CS(COMM) No.52/2018                                                                                                 page 2 of 4




concealment the exparte injunction granted to the plaintiff has been subsequently vacated by the order dated 7.9.2017 in an appeal being FAO No.361/2017.
5. No doubt the law of amendment of pleadings is liberal, however it is equally settled law that malafide amendments ought not to be allowed. Once the dishonesty of the plaintiff became apparent and the plaintiff was caught in having concealed the factum of concealment of filing of an earlier suit on more or less the same facts against the same defendant wherein plaintiff could not get an exparte interim order and resultantly the plaintiff derived an advantage by being successful in getting an exparte injunction order in this suit on 8.8.2017, therefore this dishonesty which has been exposed cannot be sought to be undone by allowing this application. If this amendment is allowed, it would in fact amount to Court permitting a person to get over his dishonesty of concealment of facts after such a person is caught at the dishonest act because of the defendants discovering such fact and then bringing the same to the notice of this Court.

6. This application is therefore dismissed with costs. Defendant no.1 will file its certificate of fees for today’s hearing with respect to present

CS(COMM) No.52/2018                                                                                                 page 3 of 4




application, and such certificate of fees supported by the affidavit of defendant no.1 with respect to fees paid to its counsel for today’s hearing will be the costs payable in favour of the defendant no.1 by the plaintiff. Affidavit be filed by the defendant no.1 alongwith the certificate of fees of its lawyers within two weeks from today and within two weeks thereafter costs will be paid by the plaintiff to the defendant no.1.

+CS(COMM) No.52/2018

7. Counsel for the defendants states that plaintiff has not paid the costs as imposed upon the plaintiff in terms of the order dated 8.2.2018.

8. In my opinion, considering that present suit is a commercial suit, plaintiff cannot be allowed to take advantage of its own wrong in not paying the costs, and prima facie this suit ought to have been dismissed today for non-compliance of the order passed by this Court on 8.2.2018, however since the counsel for the plaintiff states that an appeal has been filed by the plaintiff against the order dated 8.2.2018 which is coming up for

hearing before a Division Bench of this Court on 4.5.2018, list on 21st August, 2018.

VALMIKI J. MEHTA, J

MAY 01, 2018/Ne


CS(COMM) No.52/2018                                                                                                 page 4 of 4

Friday, May 4, 2018

AQUALITE INDIA LTD VS CROCS INC-T.P.





$~2

*                    IN THE HIGH  COURT OF DELHI  AT NEW DELHI

+TR.P.(C.) 19/2018


AQUALITE INDIA LTD & ANR
..... Petitioners


Through:
Mr. C.A. Brijesh & Mr. Rohan Seth,


versus
Advocates.






CROCS INC

..... Respondent


Through:
Mr. Ajay Amitabh Suman, Advocate
CORAM:


HON'BLE MR. JUSTICE R.K.GAUBA

%

O R D E R



09.03.2018




The case CS (Commercial) 52/2018 titled Crocs Inc. Vs. Aqualite India Limited and Another is pending in the original side in the commercial division of this Court. The Suit bearing No. TM No. 169/2017 has also been filed by the same plaintiff (the respondent herein) against the petitioners which is pending in the Court of Ms. Twinkle Wadhwa, Additional District Judge, New Delhi, Patiala House Courts Complex.

The parties are common and the issues are similar. The counsel for the respondent submits no objection to the prayer.

Thus, the civil suit, as aforesaid, pending on the file of Additional District Judge, New Delhi, Patiala House Complex is withdrawn from the said Court and transferred to the original side of this Court for further proceedings in accordance with law.


TR.P.(C.) 19/2018                                                                                                                               page 1 of 2




The transferor court shall send the file complete in all respects to the transferee court after fixing an appropriate date for the parties to appear there.

The petition stands disposed of accordingly.



R.K.GAUBA, J.

MARCH 09, 2018

nk







TR.P.(C.) 19/2018                                                                                                                               page 2 of 2

Monday, April 30, 2018

KHUSHI RAM BEHARI LAL VS WHITEFIELDS INTERNATIONAL





$~4

IN THE HIGH COURT OF DELHI AT NEW DELHI

Decided on:- 11th April, 2018


+

CM (M) 283/2016


M/S KHUSHI RAM BEHARI LAL                         ..... Petitioner
Through:        Mr. S.K. Bansal, Mr. Vinay
Kumar Shukla & Mr. Ajay
Amitabh Saran, Advs.

versus

M/S WHITEFIELDS INTERNATIONAL PVT. LTD.
& ANR.                                                                                             ..... Respondents
Through:         Mr. Akhil Sibal, Sr. Adv. with
Mr. Akhil Schar, Mr. Nikhil


Chawla & Ms. Gayatri
Nandwani, Advs.

CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA

ORDER (ORAL)

1.                 The petitioner is the plaintiff of the civil suit (TM 07/2013) which was filed sometime in 2013 initially against the first respondent for reliefs in the nature of permanent injunction for restraint order against passing off or infringement of the trademark and the copyright of the plaintiff besides other reliefs in the nature of delivery up, rendition of accounts etc., the cause of action claimed being with regard to the use of trademark/label “Taj Mahal” with device of Taj Mahal of copyright whereof the plaintiff claims to be the owner. As per the pleadings set out in the plaint, the plaintiff had come across trading by the respondent in the impugned goods under the trademark/



CM (M)No.283/2016                                                                                                          Page 1 of 5




device of Taj Mahal sometime in the week of April, 2013, its inquiries having revealed the respondent having started the impugned activity “recently”, such use being clandestine, surreptitious, sporadic restricted and minimal.

2.                 The petition at hand has been filed against the order dated 20.10.2015 whereby the application of the plaintiff seeking permission to amend the plaint invoking the provision contained in Order VI Rule

17  of the Code of Civil Procedure, 1908, was dismissed.

3.                 Some background facts need to be noted briefly at this stage. On 14.09.2006, the first respondent had filed a trademark application bearing application no. 1487304 for registration of the trademark

“India Crown” (label). The said application was advertised in the trademark journal no. 1402 on 16.10.2008. The petitioner submitted an opposition to the said application for registration of trademark on 29.01.2009. On 06.07.2010, the petitioner had issued and served on the first respondent notice to “cease and desist” against use of the impugned device Taj Mahal.

4.                 In the suit from which the present proceedings arise, instituted on 26.05.2013, the petitioner had prayed for ad interim injunction. The trial court by its orders dated 27.05.2013 and 03.07.2013, had

granted such ad interim injunction. Meanwhile, the second respondent had also come to be added as the second defendant in the suit. On an application moved on 03.08.2013 by the second respondent under Order XXXIX Rule 4 CPC, the matter was reconsidered and by order dated 10.09.2013 the ad interim injunction was vacated. Pertinent to note, the second defendant had pointed out


CM (M)No.283/2016                                                                                                          Page 2 of 5




to the trial Court at that stage, the suppression of certain facts by the petitioner/plaintiff of the suit, the same concerning the opposition to the application of the first respondent for registration of trademark, as submitted on 29.01.2009, and the notice to cease and desist issued and served on 06.07.2010.

5.                 It is immediately after the vacation of the stay by the afore-mentioned order that the petitioner moved the application for amendment under Order VI Rule 17 CPC. The application proposed certain additions to existing paras 34 and 35 of the plaint. Though the application would state that the petitioner wanted the existing paras to
be “substituted”, it has been confirmed at the hearing that the existing pleadings in the corresponding paras are intended to be retained, facts concerning the trademark application of the first respondent and the notice of opposition filed by the petitioner are proposed to be added to para 34 and similarly retaining the existing pleadings in para 35, the petitioners seek to bring on record the service of cease and desist notice dated 06.07.2010 explaining background facts concerning therewith.

6.                 The trial Judge has rejected the prayer for amendment on the

ground it would introduce “new facts” which are not “subsequent events”, the absence of such pleadings at the inception creating doubts about the intent of the plaintiff. In the view of the trial Court, the permission to amend would add a “new cause of action”, the effort to fill in lacunae after “substantial decision by the court” being impermissible.




CM (M)No.283/2016                                                                                                          Page 3 of 5




7.                 The learned senior counsel for the respondents has placed reliance on judgments titled as Surinder Kumar & Ors. vs. Swarn Singh 150 (2008) Delhi Law Times 294 (DB) and Revajeetu Builders & Developers vs. Narayanaswamy & Sons & Ors. 2009 (13) SCALE

241  to argue that the amendment has been rightly rejected by the trial court and this Court ought not interfere. The thrust of his arguments was that the amendment is an abuse of the process and that it does not pass the muster to hold the amendment being necessary for determination of the real dispute between the parties.

8.                 It does appear that the petitioner has been found guilty of suppression of material facts at the time of adjudication on the application under Order XXXIX Rule 4 CPC and resultantly has already been denied the benefit of ad interim injunction. But, it is inherent in the order whereby the application under Order XXXIX Rule 4 CPC was allowed that the facts concerning notice of opposition to the application for registration of the trademark and the notice to cease and desist are material to the controversy. In this view of the matter, it is not correct on the part of the respondents to now take an about turn and argue that the facts sought to be added are not necessary for determination of the real dispute between the parties. The relevancy of such facts has been demonstrated by the respondents themselves and they cannot be allowed to now speak otherwise.

9.                 It is not that the petitioner is withdrawing the existing pleadings so as to create the impression that the cause of action with reference to the impugned activity, noticed in the first week of April, 2013, is effaced. The existing pleadings are being retained and alongside the


CM (M)No.283/2016                                                                                                          Page 4 of 5




same, the facts of the earlier period, as brought to the notice of the trial court by the defendants, are being brought on record. The application for amendment does not make out a new case not the least to bring a new cause of action. The amendments would not alter the nature of the suit and there is no substantive decision taken by the trial court yet. The issues are yet to be framed and the case is yet to enter the stage of trial.
10.            The apprehension of the respondents that the petitioner, after this amendment, would be in a position to re-claim the ad interim

injunction by creating an impression that there has been no suppression of facts is wholly misplaced. The previous proceedings would always be there for the defendants to show to the trial court the chronology of events in proper light.

11.            In the opinion of this Court, the amendments are necessary for effectual and complete determination of the controversy raised by the suit and, therefore, the impugned order cannot be upheld.

12.            Thus, the petition is allowed. The impugned order is set aside. The permission to amend the plaint is granted. The amended plaint shall be taken on record by the trial Court. The respondents have the liberty to file a written statement in answer to the amended plaint for which the trial court will give appropriate opportunity.


R.K.GAUBA, J.

APRIL 11, 2018
nk





CM (M)No.283/2016                                                                                                          Page 5 of 5

Blog Archive

Featured Post

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...

My Blog List

IPR UPDATE BY ADVOCATE AJAY AMITABH SUMAN

IPR UPDATE BY ADVOCATE AJAY AMITABH SUMAN

Search This Blog