Bombay High Court Dismisses Appeal Against Ex-Parte Ad-Interim Injunction in Trademark Infringement Suit — No Material Suppression Found. The court upheld the order granting injunction and appointing Court Receiver, noting that the defendants' subsequent registration does not bar the plaintiff's claim and that the order was time-limited with liberty to apply for variation.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The case involves a commercial appeal by the original defendants against an ex-parte ad-interim order dated 15th September 2022 passed by a single judge in a trademark infringement and passing off suit. The plaintiff, Suarabhakti Goods Pvt Ltd, alleged that the defendants, Kewal Ashokbhai Vasoya and Nirav Patel, were using a deceptively similar mark. The impugned order granted a time-limited injunction until 19th October 2022, appointed a Court Receiver for a limited purpose, and gave liberty to the defendants to apply for variation with 72 hours notice. The defendants appealed, arguing that the order was passed without notice and that the plaintiff suppressed material facts, including that the defendants were registered proprietors of the rival mark (though subsequent to plaintiff's registration) and that the plaintiff had applied for cancellation of the defendants' mark but did not annex the application. The division bench, comprising GS Patel and Gauri Godse JJ, heard the appeal. The court noted that the plaint did mention the defendants' registration and the cancellation application, and that the order was time-limited with liberty to the defendants. The court found no material suppression and held that the ex-parte order was justified. The appeal was dismissed, and the interim order was confirmed. The court also directed that the leave petition under Clause 14 of the Letters Patent be decided expeditiously.

Headnote

A) Civil Procedure - Ex-parte Ad-Interim Injunction - Order 39 Rule 3 CPC - Suppression of Material Facts - The court examined whether the plaintiff suppressed the fact that defendants were registered proprietors of the rival mark and that cancellation proceedings were pending. Held that there was no material suppression as the plaint mentioned the registration and cancellation application, and the defendants had opportunity to apply for variation. (Paras 4-10)

B) Trademark Law - Infringement and Passing Off - Registered Trademark - The court noted that the defendants' subsequent registration does not bar an infringement action and that the plaintiff's prior registration gives a prima facie case. The ex-parte order was time-limited and with liberty to defendants. (Paras 3, 10)

C) Civil Procedure - Court Receiver - Appointment - The appointment of Court Receiver for a limited purpose was held to be within the court's discretion and not a ground to set aside the order. (Para 2)

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Issue of Consideration

Whether the impugned ex-parte ad-interim order granting injunction and appointing Court Receiver should be set aside on grounds of suppression of material facts by the plaintiff.

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Final Decision

The appeal is dismissed. The impugned order dated 15th September 2022 is confirmed. The leave petition under Clause 14 of the Letters Patent is directed to be decided expeditiously.

Law Points

  • Ex-parte ad-interim injunction
  • Order 39 Rule 3 CPC
  • Suppression of material facts
  • Trademark infringement
  • Passing off
  • Registered trademark
  • Leave petition under Clause 14 Letters Patent
  • Court Receiver appointment
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Case Details

2022 LawText (BOM) (10) 62

Commercial Appeal (L) No. 31992 of 2022 with Interim Application (L) No. 31993 of 2022

2022-10-07

GS Patel, Gauri Godse

Mr Alankar Kirpekar (for appellants), Mr Bhupesh Dhumatkar (for respondent)

Kewal Ashokbhai Vasoya & Anr

Suarabhakti Good Pvt Ltd

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Nature of Litigation

Commercial appeal against an ex-parte ad-interim order in a trademark infringement and passing off suit.

Remedy Sought

The appellants (original defendants) sought to set aside the ex-parte ad-interim injunction and appointment of Court Receiver.

Filing Reason

The appellants alleged that the plaintiff suppressed material facts, including that the defendants were registered proprietors of the rival mark and that the plaintiff's cancellation application was not annexed.

Previous Decisions

The single judge (RI Chagla J) passed an ex-parte ad-interim order on 15th September 2022 granting a time-limited injunction until 19th October 2022, appointing a Court Receiver, and giving liberty to defendants to apply for variation.

Issues

Whether the ex-parte ad-interim order was passed in violation of Order 39 Rule 3 CPC due to suppression of material facts. Whether the plaintiff suppressed the fact that the defendants are registered proprietors of the rival mark and that cancellation proceedings were pending.

Submissions/Arguments

Mr Kirpekar for the appellants argued that the plaintiff suppressed the defendants' registration and did not annex the cancellation application, and that the ex-parte order should not have been granted. Mr Dhumatkar for the respondent argued that the plaint mentioned the registration and cancellation application, and that the order was time-limited with liberty to the defendants.

Ratio Decidendi

An ex-parte ad-interim injunction can be granted if there is no material suppression of facts. The fact that the defendants have a registered mark does not bar an infringement action, especially when the plaintiff's mark is prior. The order being time-limited and with liberty to apply for variation mitigates any prejudice.

Judgment Excerpts

The original Defendants in the Commercial Intellectual Property Suit have come in appeal against a without notice ad-interim order dated 15th September 2022 by RI Chagla J. By the impugned order, Chagla J granted a time-limited ad-interim injunction and appointed a Court Receiver for a limited purpose. There are two questions that arise for our immediate consideration.

Procedural History

The plaintiff filed Commercial IP Suit (L) No. 28710 of 2022 with Interim Application (L) No. 28715 of 2022. On 15th September 2022, the single judge passed an ex-parte ad-interim order. The defendants filed Commercial Appeal (L) No. 31992 of 2022 against that order, along with Interim Application (L) No. 31993 of 2022. The appeal was heard on 7th October 2022 and dismissed.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 39 Rule 3
  • Letters Patent: Clause 14
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