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Delhi High Court - Orders

Pfizer Inc & Ors vs Natco Pharma Limited on 23 September, 2022

Author: Prathiba M. Singh

Bench: Prathiba M. Singh

                          $~3
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +               CS(COMM) 475/2021 and I.A. 15250/2022
                                PFIZER INC & ORS.                             ..... Plaintiffs
                                               Through: Ms. Tusha Malhotra and Ms. Richa
                                                        Bhargawa,       Advocates         (M:
                                                        9999954489).
                                               versus

                                NATCO PHARMA LIMITED                    ..... Defendant
                                               Through: Mr. Ankur Vyas, Advocate (M:
                                                        8690011102).
                                CORAM:
                                JUSTICE PRATHIBA M. SINGH
                                         ORDER

% 23.09.2022

1. This hearing has been done through hybrid mode. I.A. 15250/2022 (u/O XXIII Rule 3 CPC)

2. This is an application jointly filed by the parties under Order XXIII Rule 3 CPC. The present suit has been filed for permanent injunction restraining infringement of IN 218291 which covers and claims the Plaintiff's commercial product 'Palbociclib', rendition of accounts, damages, delivery up, etc. On 5th October, 2021, an undertaking was given by the Defendant to the Court that four weeks prior notice would be given to the Plaintiff, before the drug which is alleged to be infringing the suit patent is launched in the market. Thereafter, the parties had apprised the Court that they were in settlement talks.

3. Today, it is submitted that the parties have amicably resolved their disputes in terms of the following terms and conditions:-

"2. The Plaintiffs, namely Pfizer Inc., Warner-Lambert Company LLC and Pfizer Products India Private Limited Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:26.09.2022 18:53:32 and the Defendant, namely Natco Pharma Limited have arrived at an amicable resolution on the terms and conditions as detailed hereinbelow. The Parties have agreed that the commercial suit for patent infringement, being C.S.(Comm) No. 475 of 2021, may be decreed by the Hon'ble High Court of Delhi, based on the following terms which reflect the undertakings offered by the Defendant in good faith and without prejudice to its rights and contentions.
i. The Defendant will not be launching any Palbociclib product till expiry of IN 218291on 10.01.2023 or until there is any finding of invalidity in respect of such patent by any competent Court;
ii. The Defendant affirms that there has been no commercial use of any kind whatsoever in relation to Palbociclib till date and there will be no commercial launch of Palbociclib product as stated in paragraph
(i) above;

iii. The Defendant reserves its rights available in law including the provisions of Section 107A of the Patents Act, 1970 to carry out such activity in relation to development and submission of information in India or elsewhere where the laws provide for or mandate the submission of such information. The said rights shall be exercised and any such activity will be undertaken in compliance with the safeguards laid down by this Hon'ble Court in Bayer Corporation v. Union of India [2019 (78) PTC 521(DB)] or any other laws in force. iv. The aforesaid undertaking from the Defendant is without prejudice to the rights and contentions of the parties available under law."

Subject to the undertakings given by the Defendant herein, the Plaintiffs forego their claim for delivery up, damages, rendition of accounts and costs of the proceedings as regards the Defendant, as prayed for in paragraph 60 clauses (b) to (e) of the Plaint. However, in the event of a breach of these undertakings by the Defendant, the Plaintiffs reserve their right to seek any remedies available Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:26.09.2022 18:53:32 to them in law and equity including reviving the Plaintiffs' rights to claim damages."

4. The Court has perused the terms of settlement. The same are lawful and there is no impediment in recording the settlement. The settlement agreement is signed by the Authorized Signatories of the Plaintiffs and the Defendant. The parties shall be bound by the terms of settlement extracted above.

5. The suit is decreed in terms of paragraphs 2 of the joint application under Order XXIII Rule 3 CPC as also paragraph 60 (a) of the plaint. Decree sheet be drawn accordingly.

6. All pending applications, if any are also disposed of.

PRATHIBA M. SINGH, J.

SEPTEMBER 23, 2022 MR/SK Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:26.09.2022 18:53:32