Case Note & Summary
The petitioner, EuroKids International Private Limited, filed an arbitration petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim relief against the respondent, Bhaskar Vidhyapeeth Shikshan Sanstha, for alleged breach of a franchise agreement. The petitioner had entered into a franchise agreement with Mr. Ashish Sharma (brother of respondent's representative) on 3rd June 2009, licensing proprietary marks for a preschool. The agreement was renewed on 5th March 2012 with additional terms, but the respondent started advertising without confirmation. A fresh agreement was executed on 23rd August 2012, valid till 31st March 2013. The petitioner alleged that the respondent failed to pay royalty fees and stopped payment of cheques. On 11th March 2013, the petitioner issued a cease and desist notice, terminating the agreement. The respondent disputed the termination and claimed to have paid dues. The petitioner filed the petition seeking to restrain the respondent from using its trademarks and operating as a franchisee. The court examined the facts and found that the petitioner had made out a prima facie case, the balance of convenience was in favor of the petitioner, and irreparable loss would be caused if the injunction was not granted. The court granted the injunction restraining the respondent from using the petitioner's trademarks, logos, and from holding itself out as a franchisee. The court also directed the respondent to render accounts and hand over all materials bearing the petitioner's marks.
Headnote
A) Arbitration - Interim Relief - Section 9 of the Arbitration and Conciliation Act, 1996 - Franchise Agreement - Trademark Infringement - The petitioner sought injunction against respondent from using its trademarks after termination of franchise agreement due to non-payment of royalty and breach of terms - Court held that petitioner had made out a prima facie case, balance of convenience was in favor of petitioner, and irreparable loss would be caused if injunction not granted - Respondent restrained from using petitioner's marks and operating as franchisee (Paras 1-13).
Issue of Consideration
Whether the petitioner is entitled to interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, restraining the respondent from using the petitioner's trademarks and operating as a franchisee after termination of the franchise agreement.
Final Decision
The court allowed the petition and granted an injunction restraining the respondent from using the petitioner's trademarks, logos, or holding itself out as a franchisee. The respondent was directed to render accounts and hand over all materials bearing the petitioner's marks.
Law Points
- Section 9 of the Arbitration and Conciliation Act
- 1996
- interim relief
- franchise agreement
- trademark infringement
- cease and desist
- balance of convenience
- prima facie case
- irreparable loss
