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  • Courts Act, 2015 (Commercial Courts Act).5.
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citation codes
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  • Courts Act, 2015 (Commercial Courts Act).5.
Smart Summary

Factual and Procedural Background

The suit was instituted in 1993 and later re-numbered in 2004. It concerns a trademark dispute over the use of the mark ‘MAGGI’ in relation to mixers, grinders, and juicers. The original defendants No. 1 and 2 were manufacturers using the trademark, while defendant No. 3 was alleged to be their dealer in Delhi but has remained ex-parte. Defendants No. 4 and 5 were impleaded after acquiring the trademark from defendants No. 1 and 2, who have ceased to appear and against whom no formal ex-parte order exists. Issues were framed in 2000 and additional issues in 2005. No interim orders were granted to the plaintiffs as they did not press for them if the trial was expedited. After the plaintiffs’ evidence concluded, defendants No. 4 and 5 sought to file additional documents to prove trademark usage since 1982, including legal notices, replies, and advertisements. The suit qualifies as a commercial suit under the Commercial Courts Act, 2015.

Legal Issues Presented

  1. Whether the defendants No. 4 and 5 should be permitted to file and prove additional documents at a late stage in the suit.
  2. Whether the principle of allowing late filing of documents applies in the context of commercial suits under the Commercial Courts Act, 2015.

Arguments of the Parties

Defendants No. 4 and 5's Arguments

  • Disputed the claim that defendant No. 3 was the dealer of defendants No. 1 and 2.
  • Filed additional documents to establish user of the trademark since 1982, including legal notices, replies, and advertisements.
  • Asserted that legal notices and replies were addressed to another entity, a proprietary concern of defendant No. 4.

Plaintiffs' Arguments

  • Did not admit the genuineness of the additional documents filed by defendants No. 4 and 5.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court recognized the past liberal approach to allowing late filing of documents, typically to protect litigants from their advocates' errors or lack of awareness, especially in mofussil jurisdictions. However, the Court distinguished this approach in the context of commercial suits governed by the Commercial Courts Act, 2015, which aims to expedite disposal and provide priority treatment to such cases. The Court emphasized that commercial litigants are generally sophisticated and should comply with procedural timelines. Given the vintage of the suit (since 1993) and the absence of satisfactory justification for the late filing, the Court found that allowing the additional documents at this stage would cause undue delay, including the necessity of examining multiple witnesses. Therefore, the Court declined to admit the additional documents but permitted the defendants to prove only those documents previously filed with the affidavit whose advance copy was served in 2001. The Court also allowed the defendants to summon witnesses only to prove the admitted documents.

Holding and Implications

The application to file additional documents at a late stage was dismissed.

The defendants No. 4 and 5 are restricted to proving only the documents filed earlier with the affidavit served in 2001. They are permitted to summon witnesses solely for these documents. This decision enforces procedural discipline in commercial suits to prevent undue delays, without setting new precedent beyond the direct effect on the parties in this case.

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    Societe Des Produits Nestle S.A. v. Essar Industries

    Rajiv Sahai Endlaw, J.

    IA No. 6930/2007 (of plaintiffs for summoning of record)

    1. The evidence of the plaintiffs stands concluded.

    2. This application has become infructuous and be not shown in the Cause List.

    IA No. 3380/2016 (of D-4&5 u/O 11 R-1(10) CPC for filing additional documents)

    3. The counsel for the defendants No. 4&5.applicants and the counsel for the plaintiffs/non-applicants have been heard.

    4. It transpires (i) that the present suit was instituted as far back as in 1993 though was re-numbered in 2004; (ii) that the suit is to restrain the use of the trademark ‘MAGGI’ in relation to mixers, grinders and juicers and for ancillary reliefs; (iii) that the suit as originally instituted was against the defendants No. 1&2 who were manufacturing the goods under the said trademark and the defendant No. 3 was stated to be the dealer of the defendants No. 1&2 at Delhi; (iv) that the defendant No. 3 has not contested the suit and is ex-parte; (v) that the defendants No. 1&2 have now assigned the trademark to the defendants No. 4&5 who were subsequently impleaded in this suit and the defendants No. 1&2 also are now not appearing; (vi) that there is no formal order proceeding ex-parte against defendants No. 1&2 as yet; (vii) that the issues were framed in the suit on 8th December, 2000 and additional issues were framed on 28 July, 2005; (viii) that there is no interim order in favour of the plaintiffs because on 20 February, 2001, the counsel for the plaintiffs stated that if the trial is expedited he is not pressing for interim orders; (ix) that though the counsel for the defendants No. 4&5 furnished advance copy of affidavit by way of examination-in-chief of the defendant No. 4 to the counsel for the plaintiffs along with documents which were not filed earlier but now after the evidence of the plaintiffs stood concluded on 5 November, 2015 and the stage for evidence of the defendants No. 4&5 was reached, it transpired that the said affidavit by way of examination-in-chief of the defendant No. 4 is not on record; (x) that the defendants No. 4&5 were however permitted to file a fresh affidavit by way of evidence of the defendant No. 4; (xi) that the defendants No. 4&5 have along with the fresh affidavit, besides the documents which were filed along with the earlier affidavit, have filed a large number of additional documents; (xii) that the said additional documents are to show user of the trademark in relation to mixers and grinders since 1982 and inter alia comprise of legal notices, replies thereto and advertisements in newspapers; (xiii) that the suit is a commercial suit within the meaning of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (Commercial Courts Act).

    5. The counsel for the defendants No. 4&5 states that the defendants No. 4&5 dispute that the defendant No. 3 was the dealer of the defendants No. 1&2.

    6. The counsel for the plaintiff does not admit the genuineness of the additional documents filed by the defendants No. 4&5.

    7. On enquiry, as to whether the legal notices and replies are also disputed, it is stated that the legal notices are not to the defendants No. 1&2 or defendants No. 4&5 but to some other entity.

    8. The counsel for the defendants No. 4&5 states that the said other entity was the proprietary concern of the defendant No. 4.

    9. I have in the light of aforesaid facts judged the justifiability of allowing the additional documents on record and permitting the same to be proved.

    10. Though Courts have undoubtedly been liberal in past in allowing documents to be filed, even at a late stage, beyond the stage prescribed in law for filing thereof, but I am of the view that the said view needs to be changed specially in the light of the coming into force of the Commercial Courts Act, the whole purport whereof is to expedite the disposal of such suits and when certain edge has been given to the said suits in the manner of disposal thereof and which differentiation and advantage, if the said suits were not to be treated differently or did not form a distinct class, would be held to be arbitrary and discriminatory. A litigant with a claim which would not classify as a commercial dispute would certainly then be entitled to contend that no priority should be given to commercial suits as is purported to be done under the Commercial Courts Act.

    11. The principle which prevailed with the Courts earlier, for allowing documents even at the late stage viz. of the litigant should not suffer for the fault of his advocate or for being not advised to file documents at the correct stage and which principle had evolved in the context of mofussil jurisdiction, where the litigants were uneducated and not aware of their rights, cannot certainly be applied to suits of commercial men and commercial concerns who do not suffer from any such handicap.

    12. Applying the said reasoning and finding the suit to be of 1993 vintage and not finding any justification for the defendants No. 4&5 to file documents at this stage and yet further finding that allowing such additional documents to be taken on record would endlessly delay the trial, inasmuch as an opportunity will then also have to be given for proof of the said documents and which proof would entail examination of a number of witnesses, I am not inclined to allow the additional documents to be taken on record.

    13. The application is dismissed.

    14. It is however clarified that the defendants No. 4&5 shall be entitled to prove only the documents which were filed along with the affidavit of which advance copy was given to the counsel for the plaintiffs on 6 September, 2001, even though such documents also had not been filed at an appropriate earlier stage.

    IA No. 8395/2016 (of D-4&5 for summoning the witnesses)

    15. Allowed; the defendants No. 4&5 are permitted to summon such of the witnesses who are to prove the documents qua which the evidence has been confined and not the witnesses who were required to prove the documents which have not been permitted to be taken on record.

    16. The application is disposed of.

    CS(COMM) 587/2016

    17. The date of 5 August, 2016 before the Joint Registrar is cancelled.

    18. Court Commissioner is stated to have been appointed to record the evidence of the parties.

    19. The parties to, with prior appointment, appear before the Court Commissioner on 10 August, 2016.

    20. The Court Commissioner to endeavour to expedite the recording of the evidence.

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    Societe Des Produits Nestle S.A. v. Essar Industries
    (Jul 28, 2016)