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Smart Summary

Factual and Procedural Background

This Leave Petition arises from a trademark infringement and passing off suit filed by the Plaintiff under Clause XIV of the Letters Patent. The Plaintiff, registered proprietor of the trademark “CHERI” in class 5 for pharmaceutical preparations, alleges that the Defendants have used an identical or deceptively similar mark “MULTI CHERRY” on similar goods, amounting to trademark infringement and passing off. The Plaintiff carries on business in Mumbai and claims jurisdiction under Section 134 of the Trade Marks Act, 1999, to file the suit in this Court. The Plaintiff seeks leave to combine the cause of action for passing off, which arises outside the Court’s jurisdiction, with the cause of action for infringement. The Defendants oppose the application on grounds of jurisdiction and maintainability of the suit.

Legal Issues Presented

  1. Whether the Plaintiff’s suit for trademark infringement is maintainable before this Court under Clause XIV of the Letters Patent despite the cause of action for passing off arising outside the Court’s jurisdiction.
  2. Whether the Plaintiff is entitled to combine the cause of action for passing off with the cause of action for infringement in the same suit under Clause XIV.
  3. Whether the Plaintiff’s registered trademark covers the goods in relation to which the Defendants use the allegedly infringing mark, affecting the maintainability of the suit.

Arguments of the Parties

Plaintiff's Arguments

  • The Plaintiff is the registered proprietor of the trademark “CHERI” for pharmaceutical preparations and carries on business in Mumbai.
  • The Defendants’ use of “MULTI CHERRY” for similar goods infringes the Plaintiff’s registered trademark and amounts to passing off.
  • Under Section 134 of the Trade Marks Act, 1999, the Plaintiff is entitled to file the suit within the Court’s jurisdiction.
  • The Plaintiff seeks leave under Clause XIV to combine the cause of action for passing off with the cause of action for infringement, despite the passing off cause arising outside the jurisdiction.

Defendants' Arguments

  • The cause of action for infringement did not arise within the Court’s jurisdiction; hence, no leave should be granted under Clause XIV to combine the causes of action.
  • The suit for infringement is ex facie not maintainable because the Defendants’ goods (dietary supplements) do not fall within the Plaintiff’s registered specification of “pharmaceutical preparations.”
  • The Plaintiff suppressed material facts regarding the amendment of the specification of goods during trademark registration.
  • Relying on Jagdish Gopal Kamath v. Lime & Chilli Hospitality Services Pvt. Ltd, the Defendants contend that an ex facie non-maintainable suit should not be allowed to combine causes of action under Clause XIV.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jagdish Gopal Kamath v. Lime & Chilli Hospitality Services Pvt. Ltd, Petition No. 972 of 2012, S.J Kathawalla, J. dtd. 22/4/2013 Principle that leave under Clause XIV should not be granted if the suit is ex facie not maintainable and is an abuse of process. Referenced by the Defendants to argue non-maintainability; Court held that the suit was not ex facie non-maintainable and thus this precedent did not bar granting leave.
UltraTech Cement Limited v. Shree Balaji Cement Industries, Petition No. 369 of 2013, S.J Kathawalla, J. dtd. 18 January 2014 Interpretation of Clause XIV jurisdiction and combining causes of action when the Court has jurisdiction over one cause of action. Supported the Court’s view that jurisdiction exists by reason of Plaintiff’s residence or business and that causes of action can be combined under Clause XIV.

Court's Reasoning and Analysis

The Court analyzed Clause XIV of the Letters Patent, which permits combining several causes of action in one suit if the Court has original jurisdiction over at least one cause. The Court held that jurisdiction is not limited to where the cause of action arises territorially but also includes other grounds such as the residence or business of the plaintiff within the jurisdiction. Under Section 134(2) of the Trade Marks Act, 1999, the Plaintiff’s business presence in Mumbai confers jurisdiction for trademark infringement. Consequently, the Court found no merit in the Defendants’ first objection regarding jurisdiction.

Regarding the second objection on maintainability, the Court noted that the Defendants challenged the scope of the Plaintiff’s registered trademark specification, arguing that the Defendants’ goods are dietary supplements and not pharmaceutical preparations. The Court emphasized that such factual disputes and reliance on material outside the plaint cannot be considered at the leave stage under Clause XIV. The Court found that the suit was not ex facie non-maintainable nor an abuse of process, thereby rejecting the second objection.

Thus, the Court concluded that leave should be granted to combine the causes of action for infringement and passing off.

Holding and Implications

The Court allowed the Leave Petition and granted the Plaintiff leave under Clause XIV of the Letters Patent to combine the causes of action for passing off and trademark infringement in the suit.

The direct consequence is that the Plaintiff may proceed with a consolidated suit despite the passing off cause of action arising outside the Court’s jurisdiction. No order as to costs was made. The opinion does not set any new precedent beyond the application of Clause XIV and existing statutory provisions.

    Indchemie Health Specialties Pvt. Ltd. v. Intas Pharmaceuticals

    P.C:

    This Leave Petition is taken out by the Plaintiff in a trademark infringement and passing off suit, under Clause XIV of the Letters Patent. The Leave Petition is on the footing that Plaintiff's suit for infringement of its registered trademark is maintainable before this Court and that under Clause XIV of the Letters Patent, the Plaintiff be permitted to combine the cause of action for passing off with the cause of action for infringement of trademark in the proposed suit. The cause of action for passing off arises outside the jurisdiction of this Court.

    2. The Plaintiff claims to be the registered proprietor of the trademark “CHERI” in class 5 in respect of pharmaceutical preparations. It is the Plaintiff's case that the Defendants have been using an identical mark or a deceptively similar mark with the addition of a word, namely, “MULTI CHERRY” for similar goods. It is the Plaintiff's case that such use by the Defendants not only amounts to infringement of the Plaintiff's registered trademark but results into passing off of the Defendants' goods as the goods of the Plaintiff. The Plaintiff carries on business in Mumbai and its goods are available in Mumbai. It is claimed that by virtue of Section 134 of the Trade Marks Act, 1999, the Plaintiff is entitled to file the present suit for infringement of its registered trademark within the jurisdiction of this Court. Having regard to the fact that the same set of facts, as are averred towards the Plaintiff's case of infringement, give rise to the cause of action of passing off, the Plaintiff has prayed for leave under Clause XIV for combining the causes of action for infringement and passing off.

    3. The application is opposed by the Defendants on two grounds: Firstly, it is submitted that the cause of action for infringement not having arisen within the jurisdiction of this Court, no leave can be granted under Clause XIV of the Letters Patent for combining the cause of action for passing off with that of infringement. Secondly, it is submitted that the suit for infringement, as framed, is ex facie not maintainable and that, in the premises, no leave ought to be granted for combining the causes of action. Mr. Dhond, learned Senior Counsel appearing for the Defendants, relies on a judgment of this Court in the case of Jagdish Gopal Kamath v. Lime & Chilli Hospitality Services Pvt. Ltd. Petition No. 972 of 2012, S.J Kathawalla, J. dtd. 22/4/2013 in this behalf.

    4. Clause XIV of the Letters Patent reads thus:

    “And We do further ordain that where plaintiff has several causes of action against a defendant, such causes of action not being for land or other immovable property, and the said High Court shall have original jurisdiction in respect of one of such causes of action, it shall be lawful for the said High Court to call on the defendant to show cause why the several causes of action should not be joined together in one suit, and to make such order for trial of the same as to the said High Court shall seem fit.”

    5. The requirement of Clause XIV, as may be seen even from a bare reading of the Clause, is that the High Court shall have original jurisdiction in respect of one of the several causes of action which are available to a plaintiff against a defendant. It is not necessary that such cause of action ought to have arisen within the jurisdiction of the High Court. A court has jurisdiction in respect of a cause of action not only on the ground that such cause of action arises within the territorial limits of its jurisdiction but even on other grounds such as residence or business of the defendant within the local limits of its jurisdiction. In the case of Section 134(2) of the Trade Marks Act, 1999, a registered proprietor of a trademark can institute a suit for infringement in a district court within the local limits of whose jurisdiction at the time of institution of the suit, the registered proprietor actually or voluntarily resides or carries on business or personally works for gain. Thus, in the case of an infringement action, this Court has jurisdiction in respect of the subject matter of dispute by reason of the residence or business of the plaintiff proprietor. Once it is clear that the Court has jurisdiction in respect of the cause of action for infringement by reason of the residence or business of the plaintiff being within the jurisdiction of the Court, this Court can legitimately call upon the defendant to show cause why the other cause of action claimed by the plaintiff, namely, passing off by the defendant of his goods as those of the plaintiff, cannot be combined with the cause of action for infringement. I am fortified in this view by a judgment of a learned Single Judge of this Court in UltraTech Cement Limited v. Shree Balaji Cement Industries Petition No. 369 of 2013, S.J Kathawalla, J. dtd. 18 January 2014 The first objection of the Defendants, thus, has no merit.

    6. As for the second objection, it is submitted by Mr. Dhond that the Plaintiff in the present case holds registration of its trademark CHERRI in respect of pharmaceutical preparations. It is submitted that the Defendants' goods, in respect of which the Defendants use the offending mark MULTY CHERRY, are not pharmaceutical preparations but are dietary supplements intended to supplement a normal diet and to have health benefits. It is submitted by Mr. Dhond that the Defendants have found out after a search in the Trade Marks Registry that the original specification of goods for which the Plaintiff applied for registration in class 5 was medicinal and pharmaceutical preparations and that on a specific objection raised by the Trade Marks Registry, the Plaintiff agreed to amend the specification to read simply as “pharmaceutical preparations”. It is submitted that this fact has been suppressed by the Plaintiff from this Court. In the premises, it is submitted by Mr. Dhond that ex facie the Plaintiff's registration, restricted as it is merely to pharmaceutical preparations, does not cover the goods in relation to which the Defendants use their offending mark. Relying on the judgment of this Court in Jagdish Gopal Kamat (supra), it is submitted that ex facie the suit for infringement, as framed by the Plaintiff, is not maintainable and, therefore, this Court ought not to grant leave to combine the two causes of action. No doubt it is true, as held by this Court in Jagdish Gopal Kamat (supra), that if the suit as filed is on its face not maintainable and it is nothing but an abuse of process of law or court, the Court may well refuse to grant leave under Clause XIV of the Letters Patent. The rationale of this principle is that grant of leave in such a circumstance itself is nothing but a total abuse of the process of law or court. The requirement, however, is that the Court must be in a position to arrive at the conclusion that the suit as framed is not maintainable without there being any need to consider any defence to the suit and that such suit must amount to an abuse of the process of law or court. In the present case, whether the goods, in respect of which the Defendants use their mark, are pharmaceutical preparations or not is not free from doubt. Secondly, by placing reliance on the material of the trademark application of the Plaintiff and the response of the Registry thereto and the amendment of the Plaintiff's application after such response, which are not forming part of the plaint, the Defendants require the Court to consider material other than what appears on the face of the plaint and which material also calls for an enquiry. This is not permissible for the Court to do whilst exercising powers under Clause XIV of the Letters Patent. On the reading of the plaint it is by no means clear that the suit is ex facie not maintainable or that it amounts to abuse of the process of law or court. There is, thus, no merit in this defence either.

    7. The Leave Petition of the Plaintiff is, accordingly, allowed and the Plaintiff is granted leave under Clause XIV of the Letters Patent for combining the causes of action for passing off and infringement in the suit herein. There shall be no order as to costs.

    8. The Motion is also on board today at Sr. No. 7. Learned Counsel for the Defendants seeks a short adjournment. The Motion is shown for ad-interim reliefs. It may come up on board on 20 January 2015. In view of the fact that the pleadings are already complete, the parties are put to notice that the Motion may be heard finally at the ad-interim stage.

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    Indchemie Health Specialties Pvt. Ltd. v. Intas Pharmaceuticals
    (Jan 14, 2015)