High Court of Karnataka Holds Appeal Maintainable Under Section 13(1A) of Commercial Courts Act Against Ex-Parte Mandatory Injunction in Copyright Infringement Suit. Trial Court’s Failure to Record Reasons for Dispensing Notice Before Granting Mandatory Injunction Under Order 39 Rule 3 CPC Challenged as Violative of Procedural Mandate.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The appellant, Smt. Supriya Shrinate, the Chairperson of Social Media and Digital Platforms of the Indian National Congress, challenged an ex-parte order dated 07.11.2022 passed by the LXXXV Additional City Civil & Sessions Judge, Commercial Division, Bangalore, in Commercial Original Suit No.1594/2022. The suit was instituted by M/s MRT Music, a partnership firm producing and distributing sound recordings, alleging copyright infringement. The plaintiff claimed that during the Bharat Jodo Yatra, a political initiative of the Indian National Congress, two videos were posted on the official Twitter handles of the Indian National Congress and Bharat Jodo Yatra, with background music similar to the soundtrack of the film KGF Chapter 2, over which the plaintiff held copyright. The plaintiff sought permanent and mandatory injunctions and filed several interlocutory applications. The trial court, without hearing the defendants, passed an ad-interim mandatory injunction directing Twitter Inc. to remove the links and block the social media handles. The appellant preferred this commercial appeal under Section 13(1A) of the Commercial Courts Act, 2015, contending that the ex-parte order was passed in gross violation of Order 39 Rule 3 CPC, as the court did not record any reasons for dispensing with notice, and the relief granted was disproportionate. The respondent raised a preliminary objection on maintainability, arguing that an ex-parte order is not appealable until the trial court fails to dispose of the application within 30 days, relying on a single judge decision. The Division Bench, after hearing senior counsels, framed three points for consideration: maintainability of the appeal, justification for granting the ex-parte mandatory injunction without reasons, and justification for dispensing with notice. On the first point, the Court held that the appeal is maintainable, distinguishing the single judge’s ruling and relying on the Supreme Court’s decision in A. Venkata Subbaiah Naidu v. S. Chellappan and Others, (2000) 7 SCC 695, and the plain language of Section 13(1A) which makes any ‘order’ of the Commercial Court appealable. The provided judgment excerpt ends after the discussion on maintainability and framing of the remaining issues, without a final adjudication on the substantive challenge to the ex-parte injunction.

Headnote

A) Civil Procedure – Interim Injunctions – Ex-Parte Injunction – Code of Civil Procedure, 1908, Order 39 Rule 3 – Appeal Maintainability – The appellant challenged an ex-parte mandatory injunction granted against its social media handles, arguing that the trial court failed to record reasons for dispensing notice as required under the proviso to Order 39 Rule 3 CPC. The respondent contended that an appeal against an ex-parte order is not maintainable until the trial court disposes of the application within 30 days. The High Court held that the appeal is maintainable under Section 13(1A) of the Commercial Courts Act, 2015, which makes any ‘order’ appealable, and relied on the Supreme Court’s decision in A. Venkata Subbaiah Naidu v. S. Chellappan and Others, (2000) 7 SCC 695, which supports the view that an appeal against an ex-parte injunction order is not barred. (Paras 15-17)

B) Civil Procedure – Interlocutory Orders – Ex-Parte Mandatory Injunction – Code of Civil Procedure, 1908, Order 39 Rule 3 – Non-recording of Reasons – The appellant specifically argued that the trial court, while passing an ex-parte interim mandatory injunction to remove and block its Twitter handles, did not record any reasons for dispensing with notice, contrary to the mandatory proviso to Rule 3. The appellant cited precedent to establish that non-compliance with Rule 3 vitiates the order. The High Court did not reach a final decision on this point in the provided excerpt, but framed the issue for consideration along with the maintainability question. (Paras 8-14, 16)

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Issue of Consideration

Whether the appeal is maintainable? Whether the trial court was justified in granting an ex-parte interim mandatory injunction without recording reasons as required by Order 39 Rule 3 CPC? Whether the trial court was justified in dispensing with notice without demonstrating that the object of granting injunction would be defeated by delay?

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Final Decision

The Court held that the appeal is maintainable under Section 13(1A) of the Commercial Courts Act, 2015, which allows an appeal against any ‘order’, and relied on the Supreme Court’s decision in A. Venkata Subbaiah Naidu v. S. Chellappan and Others, (2000) 7 SCC 695. The excerpt provided ends before a decision on the remaining issues concerning the validity of the ex-parte injunction for non-recording of reasons.

Law Points

  • ex parte injunction must comply with Order 39 Rule 3 CPC
  • court must record reasons for dispensing notice
  • appeal against interim order maintainable under Section 13(1A) of Commercial Courts Act 2015
  • mandatory injunction ex parte not justified without reasons.
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Case Details

2022 LawText (KAR) (11) 40

Commercial Appeal No.460 of 2022

2022-11-08

Justice G. Narendar, Justice P.N. Desai

Sri. Abhishek Manu Singhvi, Sri. Udaya Holla, Sri. A.S. Ponnanna, Smt. Leela P., Sri. Srinivasa Raghavan .V, Sri. Narasimhan S. Pranav

Smt. Supriya Shrinate

M/s MRT Music & Others

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Nature of Litigation

Suit for permanent and mandatory injunction against copyright infringement of sound recordings.

Remedy Sought

Plaintiff sought injunction restraining defendants from infringing its copyright in the KGF Chapter 2 soundtrack used in videos posted on Twitter, and a direction to Twitter to remove and block the infringing content and social media handles.

Filing Reason

Allegation that the Indian National Congress and its Bharat Jodo Yatra Twitter handles posted videos with background music that infringed the plaintiff’s copyright in the film soundtrack, causing wrongful gain and irreparable loss.

Previous Decisions

LXXXV Additional City Civil & Sessions Judge, Commercial Division, Bangalore, passed an ex-parte ad-interim order dated 07.11.2022 on I.A. Nos. 1 to 6, granting mandatory injunction directing removal of links and blocking of Twitter handles.

Issues

Whether the appeal is maintainable? Whether the trial court is justified in granting ex-parte interim order in the nature of a mandatory injunction, without recording any reasons? Whether the Trial Court was justified in granting ex-parte ad-interim injunction without recording reasons to demonstrate that object of granting of ex-parte order of ad-interim injunction could be defeated by delay if the notice of interim application for injunction is not dispensed as provided under Order 39 Rule 3 of the CPC?

Submissions/Arguments

Appellant’s counsel argued that the ex-parte order cannot stand because the trial court did not record any reasons for dispensing with notice as required under Order 39 Rule 3 CPC, and the relief granted was wholly disproportionate to the alleged infringement of a 45-second audio clip. He also pointed out that the suit lacked urgency, as it was filed weeks after the alleged infringement came to light, and contended the suit had an ulterior motive. Appellant also relied on case law (Vedant Fashions, R K Jain, Paramvah Studios) to establish that non-compliance with Rule 3 vitiates an ex-parte injunction. Respondent’s counsel raised a preliminary objection that the appeal against an ex-parte order is not maintainable until the trial court fails to dispose of the application within 30 days, citing a single judge decision in Procter and Gamble Home Products Private Limited v. Marico Ltd. and the Supreme Court ruling in Kandla Export Corporation.

Ratio Decidendi

Under Section 13(1A) of the Commercial Courts Act, 2015, an appeal lies against any order of a Commercial Court, including an ex-parte ad-interim injunction order. The bar on appeals against such orders, as suggested in some single judge decisions, is not tenable in light of the statutory language and the Supreme Court’s interpretation in A. Venkata Subbaiah Naidu v. S. Chellappan and Others, (2000) 7 SCC 695. (Paras 15-19)

Judgment Excerpts

The learned Senior counsel would contend that the order cannot stand the test of law and in one stroke the trial Court has virtually pulled the defendant Nos.1 to 3 from out of all social media platforms... the relief granted is wholly disproportionate to the infringement alleged. Considering the urgency pleaded pre-institution mediation procedure is dispensed with. we are not convinced by the submissions made by learned counsel for respondent No.1 regarding maintainability of the appeal, more so, in the light of the provisions of section 13(1A) of The Commercial Courts Act, 2015 which speaks of not only the judgment but also an order, being appealable.

Procedural History

M/s MRT Music filed Commercial Original Suit No.1594/2022 before the LXXXV Additional City Civil & Sessions Judge, Commercial Division, Bangalore, alleging copyright infringement by the Indian National Congress and others for using the KGF Chapter 2 soundtrack in Twitter videos during the Bharat Jodo Yatra. Simultaneously, the plaintiff filed I.A. Nos.1 to 6 seeking ex-parte interim relief. On 07.11.2022, the trial court passed an ex-parte ad-interim mandatory injunction directing removal and blocking of the Twitter handles. The present appeal was filed under Section 13(1A) of the Commercial Courts Act, 2015, challenging that order.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 39 Rules 1, 2, 3, 3A, Order 41 Rule 1, Order 43 Rule 1(r)
  • Commercial Courts Act, 2015: Section 13(1A)
  • Information Technology Act, 2000: Section 79
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