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AMICUS AI
Citation Codes
Neutral Citations
009 INSC 1140
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Patents Act, 1973
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not found in the text)
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Cites
Cited by
Citation Codes
Neutral Citations
009 INSC 1140
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Patents Act, 1973
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not found in the text)
Smart Summary

Factual and Procedural Background

The appellant filed C.S. No. 1111 of 2007 before a learned Single Judge of the Madras High Court alleging infringement of its Patent No. 195904 under the Patents Act, 1973. On 16-2-2008 the Single Judge granted an interim injunction restraining the respondent from infringing the patent. The respondent challenged that interlocutory order in O.S.A. No. 92 of 2008; on 18-5-2009 a Division Bench allowed the appeal and vacated the injunction. The appellant sought special leave from the Supreme Court, leading to the present appeal. While the Supreme Court was seised of the matter, the underlying suit remained pending at the interlocutory stage, and even a written statement had not yet been filed.

Legal Issues Presented

  1. Whether the Supreme Court should adjudicate the merits of the interlocutory orders or, instead, direct that the patent infringement suit be finally decided expeditiously by the trial court.
  2. Whether the guidelines laid down in Shree Vardhman Rice & General Mills v. Amar Singh Chawalwala (2009) 10 SCC 257 for day-to-day trial and prompt judgment in intellectual-property suits should be enforced in the present matter.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shree Vardhman Rice & General Mills v. Amar Singh Chawalwala, (2009) 10 SCC 257 Intellectual-property suits should be tried on a day-to-day basis; final judgment normally within four months; strict compliance with proviso (a) to Order 17 Rule 1(2) CPC. The Court reiterated these directives and ordered that they “be carried out by all courts and tribunals in this country punctually and faithfully,” applying them to the pending suit.

Court's Reasoning and Analysis

1. The Supreme Court expressed dissatisfaction that, despite the suit having been filed in December 2007, it had languished at the interlocutory stage without even a written statement being filed.

2. Relying on Shree Vardhman Rice, the Court observed that intellectual-property litigation in India is often consumed by protracted fights over temporary injunctions, leaving the main suit undecided for years, an “unsatisfactory state of affairs.”

3. To correct this, the Court reiterated that the proviso to Order 17 Rule 1(2) CPC must be strictly observed: once the hearing commences, it should proceed day-to-day until all evidence is recorded, with judgment to follow swiftly.

4. Applying these principles, the Court declined to rule on the merits of the impugned interlocutory order. Instead, it:

  • Directed the respondent to file its written statement by the last working day before the High Court’s Dussehra recess.
  • Requested the trial Judge to begin day-to-day hearing immediately upon re-opening after the recess and dispose of the suit on or before 30-11-2009, granting no ordinary adjournments.
  • Vacated earlier interim orders of the Supreme Court and substituted them with a regime allowing the respondent to continue selling its product while maintaining detailed sales records.
  • Appointed a Receiver (to be nominated by the Chief Justice of the Madras High Court) who would receive, verify, and report on those sales records fortnightly; copies of each report to be furnished to both parties and the trial court.
  • Clarified that no observation was being made on the merits, leaving the Single Judge free to decide the suit uninfluenced by prior interlocutory orders.

Holding and Implications

DISPOSED OF WITH DIRECTIONS — The appeal was allowed to the limited extent of vacating the Division Bench’s order and substituting it with procedural directions for expedited trial and interim oversight of the respondent’s sales. Costs were not awarded.

Implications: The order imposes a strict timetable for final disposal of the underlying patent suit and reinforces the Supreme Court’s earlier mandate for swift, day-to-day adjudication of intellectual-property disputes nationwide. While it sets no new substantive precedent on patent law, it strengthens procedural discipline and may accelerate resolution in similar cases.

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    Bajaj Auto Limited v. Tvs Motor Company Limited .

    Markandey Katju, J.— Leave granted. This appeal has been filed against the impugned order of the Division Bench of the High Court of Judicature at Madras dated 18-5-2009 in OSA No. 92 of 2008.

    2. It appears that a suit bearing number CS No. 1111 of 2007 had been filed by the appellant herein before the learned Single Judge of the Madras High Court alleging infringement of its Patent No. 195904 under the Patents Act, 1973 (for short “the Act”). The learned Single Judge granted an interim injunction on 16-2-2008. Challenging the said interim order dated 16-2-2008, an appeal was filed by the respondent-defendant before the Division Bench of the Madras High Court which allowed the appeal by the impugned order dated 18-5-2009. Hence, this appeal before us by special leave.

    3. It is evident that the suit is still pending before the learned Single Judge of the Madras High Court. We are unhappy that the matter has been pending in the High Court at the interlocutory stage for such a long time as the suit was filed in December 2007 and yet even written statement has not been filed.

    4. Recently, we have held in Shree Vardhman Rice & General Mills v. Amar Singh Chawalwala (2009) 10 SCC 257 as follows:

    “… Without going into the merits of the controversy, we are of the opinion that the matters relating to trade marks, copyrights and patents should be finally decided very expeditiously by the trial court instead of merely granting or refusing to grant injunction. Experience shows that in the matters of trade marks, copyrights and patents, litigation is mainly fought between the parties about the temporary injunction and that goes on for years and years and the result is that the suit is hardly decided finally. This is not proper.
    Proviso (a) to Order 17 Rule 1(2) CPC states that when the hearing of the suit has commenced, it shall be continued from day-to-day until all the witnesses in attendance have been examined, unless the court finds that, for exceptional reasons to be recorded by it the adjournment of the hearing beyond the following day is necessary. The court should also observe clauses (b) to (e) of the said proviso.
    In our opinion, in matters relating to trade marks, copyright and patents the proviso to Order 17 Rule 1(2) CPC should be strictly complied with by all the courts, and the hearing of the suit in such matters should proceed on day-to-day basis and the final judgment should be given normally within four months from the date of the filing of the suit.”

    As has been observed by us in the aforesaid case, experience has shown that in our country, suits relating to the matters of patents, trade marks and copyrights are pending for years and years and litigation is mainly fought between the parties about the temporary injunction. This is a very unsatisfactory state of affairs, and hence we had passed the abovequoted order in the abovementioned case to serve the ends of justice. We direct that the directions in the aforesaid order be carried out by all courts and tribunals in this country punctually and faithfully.

    5. In the present case, although arguments were advanced at some length by the learned counsel for both the parties, we are of the opinion that instead of deciding the case at the interlocutory stage, the suit itself should be disposed of finally at a very early date. Hence, without going into the merits of the controversy, we direct the respondent-defendant to file written statement in the suit, if not already filed, on or before the last date for closing of the Madras High Court for Dussehra holidays. We would request the learned Single Judge who is trying the suit to commence the hearing of the suit on the reopening of the Madras High Court after Dussehra holidays and then carry it on a day-to-day basis. No adjournment whatsoever ordinarily will be granted and the suit shall be finally disposed of on or before 30-11-2009.

    6. The interim orders of this Court dated 8-6-2009 and 31-8-2009 are vacated and substituted by the following directions. The respondent shall be entitled to sell its product but it shall maintain accurate records/accounts of its all-India and export sales. We are appointing a Receiver to whom the records of such sale shall be furnished every fortnight by the respondent and the same shall be signed and authenticated by a responsible officer of the respondent. A copy of the same shall be given to the appellant also.

    7. We are requesting the Hon'ble the Chief Justice of the Madras High Court to forthwith nominate a Receiver in the matter to whom the sale records/accounts will be submitted by the respondent fortnightly, and the Receiver will verify the said sale records/accounts and thereafter submit his report to the learned Bench of the Madras High Court where the suit is pending. A copy of the same will be sent to the parties also. This direction will continue till the pendency of the suit. The remuneration of the Receiver will be fixed by the Hon'ble the Chief Justice.

    8. We make it clear that we are not making any observations on the merits of the case. The learned Single Judge shall decide the suit without being influenced by this order or by any observations made in the impugned order of the Division Bench or in the order of the learned Single Judge granting temporary injunction in favour of the appellant herein. The Secretary General of this Court is directed to send a copy of this judgment forthwith to the Registrar General of the Madras High Court who shall place the same before the Hon'ble the Chief Justice for obtaining the appropriate directions. Copy of this order be given to the parties today itself.

    9. The appeal is disposed of accordingly. No costs.

    Civil Appeal No. 6310 of 2009 arising out of SLP (C) No. 14039 of 2009

    10. Leave granted. In view of our judgment in civil appeal arising from SLP (C) No. 13933 of 2009, this appeal is also disposed of on the same terms. No costs.

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    Comments

    Bajaj Auto Limited v. Tvs Motor Company Limited .
    (Sep 16, 2009)