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citation codes
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  • Order 22 Rule 10 read with Order 1 Rule 10 and Section 151, CPC.2.
  • provisions of Order 22 Rule 10 of the Code of Civil Procedure
  • SECTION 45 TRADE MARKS ACT 1999
  • Order 1 Rule 10
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Order 22 Rule 10 read with Order 1 Rule 10 and Section 151, CPC.2.
  • provisions of Order 22 Rule 10 of the Code of Civil Procedure
  • SECTION 45 TRADE MARKS ACT 1999
  • Order 1 Rule 10
Smart Summary

Factual and Procedural Background

The plaintiff filed a suit seeking permanent injunction against the defendants for trademark infringement, copyright violation, passing off, damages, rendition of accounts, and delivery. During the pendency of the suit, the plaintiff, originally the proprietor of various trademarks including "HAYWARDS 5000 SUPER STRONG BEER," assigned the trademark to SKOL Breweries Limited by a deed of assignment dated 27.5.2005. Both assignor and assignee filed TM-23 applications before the Registrar of Trade Marks on the same date in compliance with Section 45 of the Trade Marks Act, 1999. The Registrar had not yet registered the assignment. The plaintiff moved an application to implead SKOL Breweries Limited as plaintiff No. 3 in the suit while the suit was still at the stage where issues had been framed and evidence was yet to be led.

Legal Issues Presented

  1. Whether the plaintiff can implead the assignee (SKOL Breweries Limited) as a party to the suit before the Registrar of Trade Marks registers the assignment.
  2. Whether the names of the original plaintiffs should be deleted and replaced by the assignee as per Order 22 Rule 10 CPC.
  3. The admissibility and evidentiary value of the deed of assignment pending registration by the Registrar of Trade Marks.

Arguments of the Parties

Plaintiff's Arguments

  • The trademark assignment to SKOL Breweries Limited was executed by a deed dated 27.5.2005 and TM-23 applications were filed simultaneously by both assignor and assignee in compliance with Section 45 of the Trade Marks Act, 1999.
  • No objections have been filed before the Registrar, and the registration is pending.
  • Pending final registration, SKOL Breweries Limited should be impleaded as plaintiff No. 3 to the suit.
  • The question of admissibility of the deed of assignment can be kept open until the suit reaches its final stage.

Defendant's Arguments

  • The application for impleadment is not maintainable until the provisions of Section 45 of the Trade Marks Act, 1999 are fully complied with and the Registrar records satisfaction and registers the assignment.
  • Under Order 22 Rule 10 CPC, only substitution is permissible, meaning plaintiff No. 3 should continue the suit exclusively and the names of plaintiff Nos. 1 and 2 should be deleted.
  • The original plaintiffs have admitted that by virtue of the assignment, they would only remain formal parties.
  • Reliance on a Single Bench decision in Jagatjit Industries Limited v. Registrar of Trade Marks to argue non-maintainability of the application before registration.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jagatjit Industries Limited v. Registrar of Trade Marks, 2000 PTC 16 Non-maintainability of application for impleadment before Registrar records satisfaction and registers assignment. The court held that the judgment was not applicable as the plaintiff conceded not to rely on the deed of assignment until registration.
Sisir Kumar Tarafdar v. Manindra Kumar Biswas, AIR 1958 Calcutta 681 Rejection of substitution application to prevent circumvention of law after abatement caused by death of parties. The court accepted the principle but found it not applicable to the present facts as the case did not involve abatement or circumvention.
Modi Threads Limited v. Som Soot Goa Factory, AIR 1992 Delhi 4 Pending registration of trademark does not bar suit for injunction by non-registered proprietor. The court noted the principle but observed that the judgment did not strictly apply, though the principle was relevant.

Court's Reasoning and Analysis

The court observed that the plaintiff No. 3 and the original plaintiffs had jointly filed TM-23 applications in compliance with the statutory provisions. Since the suit was still at an early stage with issues framed and evidence yet to be led, and the plaintiff No. 1’s counsel agreed to keep open the question of admissibility of the deed of assignment, the court found no impediment to impleading SKOL Breweries Limited as plaintiff No. 3. The court emphasized that the original plaintiffs remained proper parties at this stage because the Registrar had not yet recorded satisfaction or registered the assignment. The court distinguished the cited precedents on their facts, particularly noting that the plaintiff did not rely on the deed of assignment until registration, thus rendering some objections inapplicable. The court also clarified that the deed of assignment could not be admitted in evidence until the Registrar recorded the title in favor of the assignee. The court balanced procedural propriety and substantive rights, allowing impleadment without deleting the original plaintiffs’ names to avoid premature substitution and to maintain proper parties in the suit.

Holding and Implications

The court allowed the application and impleaded SKOL Breweries Limited as plaintiff No. 3 to the suit. The plaintiff was directed to file an amended memo of parties within two weeks. The court further directed the plaintiff to file affidavits of evidence within eight weeks and listed the matter for cross-examination thereafter, granting liberty to summon witnesses.

The direct effect is the inclusion of the assignee as a party without removing the original plaintiffs at this stage, preserving procedural correctness pending trademark registration. No new precedent was established beyond the application of existing principles to the facts.

    Shaw Wallace & Co. Ltd. v. Superior Industries Ltd.

    I.A No. 4986/2005:

    G.S Sistani, J. (Oral)— This is an application filed by the plaintiff under Order 22 Rule 10 read with Order 1 Rule 10 and Section 151, CPC.

    2. The plaintiff has filed the present suit for permanent injunction, restraining the defendants from infringement of trade mark, copyright, passing off, damages, rendition of accounts and delivery, etc. against the defendants. The issues in the suit have been framed.

    3. The present application has been filed during the pendency of the suit. The plaintiff No. 1, who was the proprietor of various trade marks, including subject trade mark, HAYWARDS 5000 SUPER STRONG BEER in Clause 32 registered under No. 436774 have been assigned the Trade Mark to the SKOL Breweries Limited, corporate office at Jalahaiii Camp Road, Yeshwantpur, Bangalore, by virtue of deed of assignment dated 27.5.2005 It is submitted by learned Counsel for the plaintiff that after the deed of assignment dated 27.5.2005 simultaneously both the parties i.e the assignee and the assignor have filed TM-23 before the Registrar of Trade Marks on 27.5.2005 itself, in compliance with the provisions of Section 45 of the Trade Marks Act, 1999. He further submits that as of now to the best of his knowledge no objections have been filed before the Registrar, Trade Marks. The Registrar, Trade Marks is yet to register the assignment in favour of SKOL Breweries Limited. Pending the final registration, he has moved this application for impleadment of SKOL Breweries Limited as plaintiff No. 3 to the suit.

    4. Learned Counsel for the defendant has objected to this application primarily on the grounds: (i) that till the time the provisions of Section 45 of the Trade Marks Act, 1999 are complied with and even to the extent that till the Registrar, Trade Marks records satisfaction and in fact registers the assignment in favour of the assignee, the present application is not maintainable; and (ii) that under the provisions of Order 22 Rule 10 of the Code of Civil Procedure there can only be a substitution which would mean that only plaintiff No. 3 should be permitted to continue with the suit and the name of the plaintiff Nos. 1 and 2 ought to be deleted, as also admittedly the plaintiff has stated in para 8 of the application that by virtue of sale deed of assignment dated 27.5.2005, the plaintiff Nos. 1 and 2 would only remain as formal parties.

    5. I have heard learned Counsel for the parties. Prima facie the plaintiff No. 3 and the plaintiffs have filed TM-23 which is, an application jointly filed by the assignor and the assignee. The suit is at the stage where the issues have been framed and the evidence is yet to be led.

    6. During the course of hearing it was put to the learned Counsel for the plaintiff whether the question with regard to the admissibility of the assignment would be kept open or not, he has fairly conceded that since the suit is not at the final stage, the question of admissibility of the deed of assignment be kept open, subject to the plaintiff No. 3 being added as a party.

    7. Keeping in view that the suit has been instituted by the plaintiff Nos. 1 and 2, the plaintiff Nos. 1 and 2 are certainly proper parties. As even otherwise, admittedly, the assignment has yet not become final as the Registrar, Trade Marks has not recorded his satisfaction, no useful purpose would be served, if their names are deleted, at this stage. In any case, they may not be necessary party, but are considered to be proper parties in the suit. Learned Counsel for the defendant has drawn my attention to a decision of a Single Bench of this Court in Jagatjit industries Limited v. Registrar of Trade Marks, 2000 PTC 16, to canvass his point that till the Registrar, Trade Marks, records his satisfaction and registers the title in favour of the assignee, such an application would not be maintainable in the Court.

    8. In the present case considering the statement made by learned Counsel for the plaintiff that till the time Registrar enters the assignment and records his satisfaction of proof of title, he will not rely on the deed of assignment, this judgment will have no application to the facts of the case in hand. As far as judgment relied upon in the case of Sisir Kumar Tarafdar v. Manindra Kumar Biswas, AIR 1958 Calcultta 681 (V 45 C 172), there is no quarrel to the proposition laid down in the said judgment. In the said case the application for impleadment of legal heirs was rejected so as not to circumvent the law. The plaintiff moved an application under Order 1 Rule 10 in the aforesaid decision., the Calcutta High Court has held that once the application for substitution after setting aside the abatement-caused by the deaths of some of the parties in a suit is rejected on merits, the plaintiff will not be permitted to circumvent the position caused by operation of law. There is absolutely no quarrel to that proposition, but the same is not applicable to the facts of this case. Learned Counsel for the plaintiff has relied upon a judgment of this Court in Modi Threads Limited v. Som Soot Goa Factory, AIR 1992 DELHI 4 wherein it has been held that pending registration of trade mark, which is not transferred in the name of the plaintiff, cannot debar him from bringing a suit for injunction. Strictly this judgment would not apply to the present case, although the principle is the same. What is to be looked into at this stage by the Court is whether once the parties have entered into an assignment deed, proposed plaintiff No. 3 would be a proper and necessary party to contest the suit? This question is to be answered in favour of the plaintiff.

    9. Till the time the Registrar, Trade Marks, does not record the title in favour of the assignee, the deed of assignment cannot be admitted in evidence and as and when the Registrar, Trade Marks files the accord/satisfaction, the same will be filed by the plaintiff. The present application is allowed. The plaintiff No. 3 is impleaded as a party to the suit. Plaintiff is directed to file amended memo of parties within two weeks from today.

    CS (OS) No. 1204/2003

    10. List before the Joint Registrar on 15.3.2007 Plaintiff is directed to file affidavits by way of evidence within eight weeks from today and thereafter list the matter for cross-examination of the witnesses of the plaintiff. Liberty is also granted to the plaintiff to summon the witnesses.

    Ordered accordingly.
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    Comments

    Shaw Wallace & Co. Ltd. v. Superior Industries Ltd.
    (Jan 16, 2007)