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Preferred Consumer Products Private ... vs The Advertising Standards Council Of ... on 9 January, 2024

Author: Jasmeet Singh

Bench: Jasmeet Singh

                                    $~32
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           CS(OS) 17/2024
                                                PREFERRED CONSUMER PRODUCTS PRIVATE LIMITED
                                                                                             ..... Plaintiff
                                                             Through: Mr R Jawahar Lal and Mr Anuj Garg,
                                                                      Advs.
                                                             versus
                                          THE ADVERTISING STANDARDS
                                          COUNCIL OF INDIA & ANR.                              ..... Defendants
                                                            Through: Ms Avni Singh, Adv. for D-1.
                                          CORAM:
                                          HON'BLE MR. JUSTICE JASMEET SINGH
                                                            ORDER

% 09.01.2024 I.A. 527/2024

1. Exemption is granted subject to all just exceptions.

2. The petitioner shall file legible and clearer copies of exempted documents, complaint with practice rules before the next date of hearing.

3. The application is disposed of.

4. This is an application seeking extension of 14 days time for depositing the requisite court fee of Rs. 2,01,000/-.

5. In view of the submissions made by learned counsel for the plaintiff and for the reasons stated in the application, the same is allowed.

6. Let the requisite court fee be filed within a period of two weeks from today.

7. The application is disposed of accordingly.

CS(OS) 17/2024

8. This is a suit for declaration against defendant No.1 declaring that This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/01/2024 at 01:57:02 defendant No. 1 has no authority/jurisdiction to exercise any control over the affairs of the plaintiff or to regulate any activity of the plaintiff including issuance of advertisements and/or making claims, using tagline/phases for advertising.

9. It is stated by Mr Lal, learned counsel for the plaintiff that the plaintiff is a manufacturer of detergents and amongst other products which includes a product called „So Klin Smart Detergent Powder‟. The product has gained popularity and the sale figures have grown from 530.24 lakhs in 2020-2021 to 6,541.75 lakhs in 2022-2023. The defendant No.1 is a private body and comprises of members who have voluntarily opted to be its part.

10. It is further stated by Mr Lal that the control over ASCI can be at best over its members and it can enforce its code only against its members.

11. Admittedly, the plaintiff is not the member of defendant No.1. The plaintiff is aggrieved by an order dated 07.09.2023 wherein the defendant No.1 have found objections to the claim of „Spotless Cleaning‟ made by the plaintiff as well as the guidelines of disclaimer.

12. Mr Lal further states that the defendant No.1 does not have any authority to pass such an order as the plaintiff is not a member of defendant No.1. In addition, he states that the order dated 07.09.2023 has been passed at the behest of defendant No.2 who is a member of defendant No.1.

13. I am of the view that the issue needs consideration.

14. For the said reasons, issue summons.

15. Ms Singh, learned counsel accepts summons on behalf of defendant No.1.

16. Let summons be issued to the defendant No. 2 on the plaintiff taking steps within 1 weeks from today.

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/01/2024 at 01:57:02

17. The written statement shall be filed within thirty days from the date of receipt of the summons.

18. List before the Joint Registrar on 22.04.2024.

19. List before the Court on 24.05.2024.

20. This is an application filed by the plaintiff under Order XXXIX Rule 1 and 2 read with Section 151 of CPC seeking ad interim ex parte stay of the order/direction/recommendation dated 07.09.2023 of defendant No.1.

21. As already noted above, the plaintiff is not a member of defendant No.1. Defendant No.1 does not have any statutory force and is a voluntary organization comprising of its members. The so called code of conduct of defendant No.1 prima facie cannot be applicable to the plaintiff.

22. For the aforesaid reasons, I am of the view that the plaintiff has a prima facie case. The balance of convenience also lies in favour of the plaintiff and against the defendants. In case an ad interim stay, as prayed for, is not granted, the plaintiff will suffer irreparable loss and injury, which cannot be compensated in terms of money.

23. It is therefore directed that the effect and operation of the order/direction/recommendation dated 07.09.2023 of defendant No. 1 shall remain stayed till the next date of hearing.

24. Provisions of Order XXXIX Rule 3 of the Code of Civil Procedure, 1908 be complied with within one week from today.

JASMEET SINGH, J JANUARY 9, 2024 sr This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/01/2024 at 01:57:03