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  • 350. Section 20 of the Code of Civil Procedure
  • Section 53 of the Designs Act, 1911
  • provisions of Designs Act, 1911.
  • Section 53 of the Designs Act.
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • 350. Section 20 of the Code of Civil Procedure
  • Section 53 of the Designs Act, 1911
  • provisions of Designs Act, 1911.
  • Section 53 of the Designs Act.
Smart Summary

Factual and Procedural Background

The plaintiff, S.S Products of India, a partnership firm and reputed manufacturer of air pumps, filed a suit for permanent injunction under Section 53 of the Designs Act, 1911, along with claims for delivery of infringing materials and rendition of accounts. The plaintiff owns a registered design (No. 176150 dated 6th April, 1998) for a distinctive air pump design, which it alleges was first designed in India and remains valid. The plaintiff claimed that the defendants and their associates began manufacturing air pumps that were identical and infringing upon the plaintiff’s registered design with mala fide and dishonest intentions.

During the pendency of the suit, the plaintiff sought an ad interim injunction to restrain the defendants from manufacturing, selling, or offering for sale the infringing air pumps. The defendants contested the suit, asserting that they hold their own registered design (No. 182208 dated 27th April, 2000), denying infringement and challenging the court's jurisdiction to entertain the suit in Delhi.

Legal Issues Presented

  1. Whether the plaintiff is entitled to prima facie demonstrate infringement of its registered design and claim an ad interim injunction.
  2. Whether the suit is maintainable under Section 53 of the Designs Act when both parties hold registered designs.
  3. Whether the Delhi civil court has jurisdiction to entertain the suit given the parties' places of residence and business operations.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff is the registered owner of an original air pump design, which is valid and distinct.
  • The defendants have started manufacturing air pumps identical to the plaintiff’s design with dishonest and mala fide intentions.
  • The court in Delhi has jurisdiction as both parties carry on business within its jurisdiction and infringement is taking place there.

Defendant's Arguments

  • The defendant’s design is also registered under the Designs Act and differs from the plaintiff’s design in several details.
  • The suit under Section 53 of the Designs Act is not maintainable as both parties hold valid registered designs.
  • The defendant denies infringement and asserts that it carries on business outside the jurisdiction of the Delhi court.
  • The Delhi court lacks jurisdiction since neither party has a registered office or conducts business in Delhi and no cause of action has arisen there.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tobu Enterprises Pvt. Ltd. v. Meghna Enterprises, 1983 PTC 359 Principle that if both parties hold registered designs, injunction relief is generally not granted. Supported the court’s view that with both designs registered, parties may use their designs and injunction is not proper.
Indo Asahi Glass Co. Ltd. v. Jai Mata Rolled Glass Ltd. & Anr., 1995 I AD (Delhi) 110 : 1995 (33) DRJ 317 As long as both plaintiff's and defendant's designs remain registered, temporary injunction cannot be granted; accounting may be ordered instead. Reaffirmed that injunction is not appropriate when both designs are registered; defendant may be required to maintain accounts.
Lok Nath Prasad Gupta v. Bijay Kumar Gupta, 1995 I AD (Delhi) 830 : 1995 (32) DRJ 350 Interpretation of Section 20 of the Code of Civil Procedure regarding jurisdiction of courts based on defendant’s residence or business. Supported the court’s conclusion that Delhi court lacks jurisdiction as defendant neither resides nor carries on business there.

Court's Reasoning and Analysis

The court analyzed whether the plaintiff was entitled to an ad interim injunction based on prima facie infringement of its registered design. It noted that both parties hold registered designs for air pumps, which legally permits each to use their respective designs. The court emphasized that the appropriate remedy, if infringement is established, would be under Section 53 of the Designs Act, potentially including cancellation proceedings rather than injunction at the interim stage.

Relying on precedents, the court held that injunction is generally not granted when both designs are registered, and at most, accounting for sales under the disputed design may be ordered to protect the plaintiff’s rights.

Regarding jurisdiction, the court examined the pleadings and found no prima facie evidence that the defendant resides or carries on business in Delhi. The plaintiff failed to establish that cause of action arose within Delhi’s jurisdiction. Applying Section 20 of the Code of Civil Procedure and relevant case law, the court concluded that the Delhi civil court lacks jurisdiction to entertain the suit.

Consequently, the court found that the plaintiff failed to establish a prima facie case entitling it to interim relief, and therefore, the application for ad interim injunction was dismissed without addressing balance of convenience or irreparable injury.

Holding and Implications

DISMISSED

The court dismissed the plaintiff’s application for an ad interim injunction against the defendants. The decision directly affects the parties by denying interim relief pending trial, reflecting that where competing designs are both registered, injunctions are generally inappropriate. The court also ruled that the Delhi civil court lacks jurisdiction over the suit based on the parties’ places of residence and business operations. No broader precedent was set beyond the immediate case context.

    S.S. Products Of India v. Star Plast

    V.S Agganwal, J.— S.S Products of India is a partnership concerned. It has filed the present suit for permanent injunction invoking Section 53 of the Designs Act, 1911 besides delivery of infringing material as well as for rendition of accounts.

    2. The facts alleged are that plaintiff firm is a reputed manufacturer and trader of all types of air pumps including air pumps for cycle etc. It had developed new design air pumps having distinctive features, desiga for shape, configuration of air pumps. The plaintiff firm has been getting the designs of air pumps developed and marketed registered under the provisions of Designs Act, 1911. It is the registered owner of the design of air pump i.e design No. 176150 dated 6th April, 1998.

    3. Assertions of the plaintiff are that the said design had been so designed first time in India and is original design made by the plaintiff. The design and its registration is still valid. In May 2000 it came to the notice of the plaintiff firm that the defendants and their associates with dishonest intentions and mala fide intentions have started manufacturing air pump for cycle which is similar and identical to the plaintiff. As per the plaintiff this has been so done with dishonest intentions because the pump manufactured by the defendant is virtually similar to that of the plaintiffs design.

    4. During the pendency of the civil suit ad interim injunction had been claimed vide IA 1851/2001 to restrain the defendant/respondent, its agents and distributors from manufacturing, selling or offering for sale or infringing the registered design of the plaintiff. By the present order the above said interim application is proposed to be disposed.

    5. In the written statement filed the defendant has contested the suit. It has been pointed that certain material facts has been suppressed. As per the defendant the plaintiff has not disclosed that design of the answering defendant is also registered vide registration No. 182208 dated 27th April, 2000. It has been duly registered by the Controller General of Patents & Design which has also issued the certificate of registration of design. The suit filed under Section 53 of the Designs act was stated to be not maintainable. Plea has also been raised that defendant has been manufacturing and selling the air pumps and it is in no way infringing the registered design of the plaintiff. In the alternative it has been pointed that the air pump registered in favour of the defendant is different from the design of the plaintiff's air pumps in various forms and details of the said defences have been enumerated in the written statement. Furthermore, plea has been raised that this court has no jurisdiction to entertain the suit. The registered office of the plaintiff as well as the defendant are at Ludhiana. There is no proof of alleged business in Delhi.

    6. The first and foremost question that comes up for consideration in the peculiar facts is as to whether plaintiff on the assertions made is entitled to prima facie show that his design has been infringed or in other words is entitled to claim ad interim injunction or not. The facts show that plaintiff has got a registered design for air pump No. 176150 dated 6th April, 1998. In this process what is obvious is that both the parties have got their designs registered. When such is the situation in that event the proper remedy in any case would be to that the parties should avail their remedies under Section 53 of the Designs Act. When both the parties are holding registration of the design then each of them can use that design for its products. It is a different matter that either party may seek cancellation of the design of the other in accordance with law but so long as designs occur and are being held, it would be improper to grant an ad interim injunction in favour of another.

    7. Reference in this connection with advantage can well be made to the decision n the case of Tobu Enterprises Pvt. Ltd. v. Meghna Enterprises, 1983 PTC 359. Relying on the cited decision, this court later in the case of Indo Asahi Glass Co. Ltd. v. Jai Mata Rolled Glass Ltd. & Anr. 1995 I AD (Delhi) 110 : 1995 (33) DRJ 317 held:

    “… as long as both, the plaintiff's design and the defendant's design stand registered, the plaintiff cannot be granted relief of temporary injunction. In order to safeguard the rights of the plaintiff, if ultimately they are established in the suit, at the most the defendant can be required to maintain proper accounts of its sales of the goods under the disputed design till the disposal of the suit and file the copies of the statements of accounts in Court quarterly till the disposal of the suit.

    One finds in respectful agreement with view point so expressed.

    8. There is another way of looking at the matter. This pertains to the objections raised by the defendant in terms that the civil suit at Delhi has no jurisdiction to entertain the said suit. In paragraph 13 of the plaintiff, the plaintiff has pleaded:—

    That this Hon'ble court has the jurisdiction to try the present suit as both the plaintiff and the defendant are carrying on their business for gain within the jurisdiction of this Hon'ble court and infringement by the defendant is also taking place at Delhi.

    9. This has been denied vehemently by the defendant asserting that neither of the plaintiff has registered office at Delhi nor it works for gain within the jurisdiction of this court. In support of his defence, learned counsel for the defendant relied upon the decision of this court in case of Lok Nath Prasad Gupta. v. Bijay Kumar Gupta., 1995 I AD (Delhi) 830 : 1995 (32) DRJ 350. Section 20 of the Code of Civil Procedure in this regard can well be taken note of and reads as under:—

    20. Other suits to be instituted where defendants reside or cause of action arises-Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction-

    (a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or

    (b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or

    (c) the cause of action, wholly or in part, arises.

    10. Though the plaintiff has made certain assertions but in the memo of parties it has clearly been mentioned that both the parties are residents of places other than the Delhi. Under Section 20 a civil suit could be instituted at a place where the defendant resides or carries on business or where the cause of action may arise. The other exceptions of there being more than one defendants need not be gone into for purposes of the present order. From the aforesaid it is clear that it must be shown that the defendant is a resident of Delhi or caries on business at Delhi. Admittedly, as referred to above defendant is not a resident of Delhi. He is shown to be resident of village Gill, District Ludhiana. There is no registered office of the plaintiff shown to be in Delhi. It is not even prima facie established that defendant has been indulging in massive sale at Delhi so as to indicate that he is carrying on business at Delhi. In the absence of any such fact it must prima facie for purposes of the present order be held that the civil court at Delhi has no jurisdiction to entertain the suit. No cause of action is shown to have arisen within the jurisdiction of the civil courts at Delhi. As an offshoot of the aforesaid it must be held that prima facie the plaintiff has not been able to establish a case and consequently the other question of balance of convenience and irreparable injury need not be gone into. IA 1815/2001 must fail and is accordingly dismissed. Rejoinder, if any, may be filed within four weeks. List it for framing of the issues on 21st January, 2002.

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    Comments

    S.S. Products Of India v. Star Plast
    (Aug 17, 2001)