Elofic Industries Limited & Anr v. Mobis India Limited and Anr

RAJIV SAHAI ENDLAW, J. OCTOBER 25, 2018 "bs"

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 25th October, 2018 + CS(COMM) 17/2016 & IAs No.387/2016 (u/O XXXIX R-1&2 CPC) & 1718/2016 (u/O VII R-11 CPC) ELOFIC INDUSTRIES LIMITED & ANR ..... Plaintiffs Through: Mr. Surinder Singh, Adv. Versus MOBIS INDIA LIMITED AND ANR ..... Defendants Through: Mr. Manish Biala and Mr. Ashutosh Upadhyaya, Advs. CORAM: HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW 1. This suit was filed by the plaintiffs claiming the following reliefs: "i. An order and decree of declaration be passed in favour of the Plaintiffs and against the Defendants, its directors, partners, promoters as the case may be and its officers, representatives, agents, assignees, distributors, licenses, private investigators, market surveyors and all others acting for and on their behalf to the effect that the threats are unjustified and groundless and that the alleged infringement for the trademarks and copyright which the threats relate to, does not amount to infringement of any legal right of the present defendants and also that the Plaintiffs commercial activities by packaging, selling, marketing, offering to sell, directly or indirectly, dealing with its products viz., Filters including Oil, Air, Fuel & Hydraulic filters to be used for Automobiles bearing Plaintiffs' Registered Trademark ELOFIC as well as the name of vehicle/ mark of third party's including of the CS(COMM) 17/2016 Defendants any of the mark i.e. Hyundai, Sonata, Accent, i10, i20 and/or Santro etc. used in a manner as described in paragraph no.28 above is legal, lawful and hence protected as "Fair Use" within the provisions of the Trademarks Act, 1999. ii. An order of Permanent injunction restraining the Defendants, its directors, partners, promoters as the case may be and its officers, representatives, agents assignees, distributors, licenses, private investigators, market surveyors and all other acting for and on their behalf, from marketing or continuing groundless threats of legal proceedings / actions against Plaintiffs and their representatives, including dealers, wholesalers, stockists etc. iii. An order and decree for payment of damages of Rs.1,00,01,000/- (Rupees one crore and one thousand only) or more be passed in favour of the Plaintiffs and against the defendants for loss of sales, reputation and goodwill of Plaintiffs caused by the groundless threats of the Defendants. iv. An order for costs in these proceedings in favour of Plaintiffs. v. Any other relief which this Hon'ble Court may deem fit and proper in the circumstances of the case and in the interest of justice may also be passed in favour of Plaintiffs and against the present Defendants." 2. The suit came up first before this Court on 11th January, 2016 and thereafter on 13th January, 2016, when summons thereof and notice of the application for interim relief were ordered to be issued. Vide ad-interim order dated 4th May, 2016, the defendants were restrained from taking any coercive steps against the plaintiffs or their dealers with respect to the packaging subject matter of the suit. It was however provided that the said order would have no bearing on the actions already initiated by the defendants. The said order has continued till now. 3. The defendants Mobis India Limited and Hyundai Motor India Limited, besides filing their joint written statement, have filed IA No.1718/2016 under Order VII Rule 11 of the Code of Civil Procedure, 1908 (CPC). The said application and IA No.387/2016 of the plaintiffs for interim relief are for consideration today. 4. The counsel of the defendants and the counsel for the plaintiffs have been heard on the application under Order VII Rule 11 of the CPC. 5. The contention of the counsel for the defendants is, (i) that the relief claimed in the suit, of restraining the defendants from meting out any threats of infringement by the plaintiffs of the trade mark of the defendants is purportedly under Section 142 of the Trade Marks Act, 1999; (ii) th